Apple supplier in Chennai reportedly under probe by Income Tax Department

India’s income tax department conducted searches at the premises of Apple supplier Flex in Tamil Nadu state, a source said on Wednesday. Income tax officials have visited the Chennai factory as part of the inquiry, the source said, adding that Flex has yet to be informed about the purpose of the visit.

The income tax department did not immediately respond to a Reuters’ request for comment.

The development comes days after another Apple supplier Pegatron halted operations at its facility near Chennai after a fire broke out on Sunday. The firm told its factory workers not to report for work the very next day, i.e., Monday. The operations could not go back to normal even on Tuesday. However, iPhone assembly at the facility resumed earlier today after it was discovered that the fire was caused by an employee’s fault, per a Reuters report.

Pegatron previously told Reuters in a statement on Monday that “there was a spark incident” at the facility and is currently under control. The incident “does not have significant financial or operational impact” for the company, it added. Pegatron has a manufacturing capacity of roughly 26,000 iPhone units per day, but over the past few months, it has been making between 8,000 and 12,000 units daily, according to the report.

— Written with inputs from Reuters