Income Tax Department investigation at the premises of Educomp Solutions for allegedly evading tax has resulted the shares of Educomp Solutions tumbled by 9.64% amounting Rs. 211.75, exceeding Thursday’s 8.9% slump.

Investigation took place at their three companies named as Educomp Solutions, Educomp Infrastructure School Management and Educomp Private Services. And, the search operation was conducted at 14 premises of the companies in Faridabad, Gurgaon and other parts of the National Capital Region (NCR). IT department is said to have sealed the company’s books under Section 133A of the Income Tax Act.

On a collective basis, Educomp Solutions' net profit tumbled 74.85% amounting to Rs. 36.64 crore on 40.16% decline in net sales to Rs. 292.42 crore in Q1 June 2011 over Q4 March 2011.

Meanwhile, the BSE Sensex was down by 295.79 points or 1.80%.

The Educomp stocks have hit of Rs 190 in the day which is also considered to be the low for the counter in 52-week. Its shares recorded 26.19% low in four consecutive sessions from a recent high of Rs. 286.90 on 12 August 2011.

The loss is not only of the money but also of the reputation, as it is a globally diversified education solutions provider and the largest education company in India.