Indian tax authorities carried out nationwide raids this week on Mirza International, one of the country’s most prominent footwear and leather companies, intensifying scrutiny of an industry long dogged by allegations of financial opacity.
Officials confirmed that 38 sites linked to the Mirza Group were searched on Wednesday, spanning corporate offices, factories, showrooms and warehouses across Kanpur, Noida, Greater Noida, Agra, Delhi, Lucknow and Chennai. Investigators say they are probing suspicions that the company understated income, masked transactions and routed funds through questionable investment channels.
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A Global Player With Local Roots
Founded in Kanpur, Mirza International grew from a regional tannery into an exporter with reach across Europe, the Middle East and the United States. Its flagship brand, Red Tape, has gained traction in international retail chains, while the company remains a major leather processor supplying global markets.
Despite its international success, the group has faced periodic questions about its accounting practices and opaque financial structures. Analysts have noted fluctuations in reported revenue and debt levels, raising concerns about whether the company’s books reflect its true operations.
Digital Trails and Foreign Investments
Sources involved in the raids said officials seized digital ledgers, bank records and files linked to foreign investment agreements. “We are reviewing years of tax filings and rebate claims. There appear to be inconsistencies between declared income and actual turnover,” one senior investigator said on condition of anonymity.
A Climate of Collusion
The Uttar Pradesh government suspended two state tax officials as part of the crackdown, alleging they colluded with businesses to bury signs of tax evasion. The move highlights a recurring criticism of India’s tax enforcement — that oversight bodies themselves are vulnerable to compromise.
A Wider Pattern of Enforcement
The Finance Ministry has increasingly deployed high-profile raids as part of its campaign against black money and financial fraud. While supporters see the strategy as necessary to curb systemic evasion, critics argue it can be selective, serving political or commercial interests.
Unanswered Questions for Mirza
Mirza International has not publicly responded to the raids. The company, listed on Indian stock exchanges, has previously portrayed itself as a compliant taxpayer and a key contributor to India’s export economy. But analysts say the raids may unsettle investors, especially given the group’s reliance on foreign retail markets.
For now, the future of the case and of one of India’s best-known footwear brands hinges on the trove of documents and digital evidence seized this week