Ashoka Buildcon Limited came under investor scrutiny after disclosing two key developments – a GST Department search at its Nashik premises and the suspension of a major road project by CIDCO. These events triggered a decline in the Ashoka Buildcon share price on the NSE, reflecting market concern over potential operational and financial impacts.
On June 11, 2025, the Goods and Services Tax (GST) Department conducted a search and seizure operation at Ashoka Buildcon’s corporate office in Nashik. This action was taken under Section 67 of the Maharashtra GST Act, 2017. The notice was issued by the Assistant Commissioner of State Tax (Investigation – B), Mumbai.
As per the company’s regulatory filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the search is still ongoing, and the financial or operational consequences are yet to be assessed.
Following the announcement of the GST search, the Ashoka Buildcon share price saw a sharp decline. As of 2:42 PM on June 12, 2025, the share was trading at ₹209.9 on the National Stock Exchange, down nearly 4%. Investors appeared cautious, awaiting more clarity on the ongoing investigation.
In a separate update, Ashoka Buildcon stated that a significant infrastructure project awarded to its joint venture with Aakshya Infra Projects has been put on hold.
The project, valued at ₹1,673.25 crore, was sanctioned by the City and Industrial Development Corporation (CIDCO) for the development of roads and related structures under the NAINA project. However, following a Bombay High Court order that quashed the financial bid, CIDCO instructed the joint venture to cease all project-related activities.
The financial impact of this suspension is not yet determined, but the company has promised to provide further updates in due course.
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Despite the twin developments, Ashoka Buildcon has assured that the ongoing operations of the company remain unaffected. This was clarified in its official communication to the stock exchanges.
The recent GST search at Ashoka Buildcon’s Nashik premises and the suspension of a ₹1,673.25 crore infrastructure project by CIDCO have placed the company in the spotlight. While the immediate financial implications remain unclear, the company has confirmed that its day-to-day operations continue unaffected. Investor attention will likely remain focused on further regulatory updates and clarity regarding both developments.
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Published on: Jun 12, 2025, 3:31 PM IST
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