The Income Tax Department has launched a massive search and seizure operation against Hicks Thermometers India Ltd. in Aligarh, sending shockwaves through the medical manufacturing sector. Initiated on January 6, 2026, this crackdown focuses on alleged tax evasion involving over ₹80 crore in suspicious transactions.
For Indian taxpayers and business owners, this raid signifies a critical shift in how authorities use technology to detect fraud. The investigation, which spans Aligarh, Delhi, and Agra, was triggered not by a whistleblower, but by AI-driven data analytics flagging irregular billing patterns, highlighting the government's tightening grip on corporate compliance.
Inside the Aligarh Operation: Coordinated Action
The operation commenced with surgical precision when a team of over 30 Income Tax officials from Delhi descended on Aligarh without prior notice to local administration. Traveling in a convoy of unmarked vehicles and backed by central security forces, the team secured multiple premises simultaneously to prevent evidence tampering.
Key locations under investigation include:
- Hicks Thermometers Factory: Located at C-26, Industrial Estate, ITI Road, Aligarh.
- Director's Residence: The home of Siddharth Gupta on Morris Road (Vijay Nikunj).
- Corporate Offices: Administrative hubs in Okhla, Delhi.
- Partner Entities: Concurrent searches at Romsons Group and Ashok Auto Sales in Agra.
The ₹80 Crore Billing Discrepancy
The core of the investigation revolves around a massive billing anomaly detected by the tax department's surveillance systems. Sources indicate that Hicks Thermometers invoiced approximately ₹80 crore to a single Delhi-based firm within a span of just six months. This unusually high concentration of sales raised immediate red flags regarding the legitimacy of the transactions.
Investigators are now scrutinizing the company's books to determine if these were genuine business deals or a method to siphon funds. The following areas are under specific forensic review:
| Suspected Violation | Investigation Detail |
|---|---|
| Ghost Firm Transactions | Verifying if the Delhi firm receiving ₹80cr billing is a shell company used for money laundering or tax avoidance. |
| Import Under-Invoicing | Scrutiny of components imported from China to check if values were suppressed to evade customs duty. |
| Kachha Bills (Cash Sales) | Allegations of off-the-books sales to wholesalers in Bhagirath Palace, incentivized with luxury gifts like ACs. |
| Stock Register Mismatches | Physical verification of inventory against digital ERP records to detect suppression of production. |
Digital forensic experts are currently onsite, using specialized tools to recover potentially deleted emails and financial logs from the company's servers to trace the money trail.
AI and Big Data: The New Enforcers
This raid highlights the capabilities of the Income Tax Department's Project Insight and advanced risk assessment modules. The raid was likely triggered automatically when the system cross-referenced data points from multiple sources.
The department now integrates data from the GST Network (GSTN), customs databases, and bank transaction reports. In the Hicks case, the mismatch between the high-value billing to a single entity and standard industry ratios likely generated a "high-risk" alert, prompting the deployment of Section 132 search powers.
Related Articles from MoneyMinted.in:
Industry Impact and Medical Sector Scrutiny
Hicks Thermometers, established in 1962, is a legacy brand in India. A raid of this magnitude on such an established player sends a stern warning to the entire medical device supply chain. This follows similar actions against entities like Science House Medical Pvt Ltd in Madhya Pradesh earlier in 2025.
The medical sector is particularly vulnerable to tax leakage due to complex supply chains involving imported components and cash-intensive wholesale markets. Authorities are now systematically dismantling networks that use "entry operators" to generate fake invoices for claiming fraudulent Input Tax Credit (ITC).
Frequently Asked Questions
Why is the Income Tax Department raiding Hicks Thermometers?
The department is investigating alleged tax evasion involving suspicious billing of over ₹80 crore to a single Delhi firm, potential import under-invoicing, and unaccounted cash sales.
What triggers an Income Tax raid like this?
Modern raids are often triggered by AI analytics flagging discrepancies between GST filings, bank transactions, and income tax returns. High-value transactions with single entities or mismatches in stock often generate automatic alerts.
What powers do officials have during a Section 132 raid?
Under Section 132, officials can seize cash, jewelry, and books of accounts. They can break open locks, search all premises, impound electronic devices, and record statements from directors that are admissible as evidence.
Key Takeaways
- Target: Hicks Thermometers India Ltd. and Director Siddharth Gupta in Aligarh.
- Scale: 30+ officials investigating ₹80 crore in suspicious billing to one firm.
- Tech Driven: The raid was triggered by data analytics flagging GST and banking mismatches.
- Scope: Investigation includes import under-invoicing from China and cash sales in wholesale markets.
- Status: Operations began Jan 6, 2026, and involve forensic analysis of digital data.
Disclaimer
This article is for informational purposes only and does not constitute financial, tax, or legal advice. The details provided are based on current media reports and ongoing investigations. Please consult a qualified professional before making decisions.
For professional inquiries regarding MoneyMinted blog, contact us at contact@moneyminted.in
