The Income Tax department on Tuesday searched offices of the Apollo Hospitals group in Chennai and other places.
Department officials declined to comment on the issue further.
Meanwhile, when reports of the search operation first came in, shares of Apollo Hospitals, which had scaled a high of Rs.1,497, fell to Rs.1,431.55 on the Bombay Stock Exchange.
The shares, however, staged a recovery when unattributed statements from the department said the operations were a routine affair. The scrip finally ended at Rs.1,466.75, with a gain of Rs.19.60, or 1.35 percent, over the previous close.
Group officials were not available for comment while their public relations agency said a statement would be issued later.
The Apollo Hospitals Group, started by cardiologist Prathap C. Reddy as a 150-bed hospital in 1983, now operates 9,200 beds across 64 hospitals, as per information available with the company. Its founder is a recipient of the Padma Vibhushan.
The group is now run by his four daughters -- Preetha Reddy, Shobana Kamineni, Suneeta Reddy and Sangita Reddy.