Hyderabad: The Income Tax Department on Tuesday carried out searches on Caps Gold Company, one of the country’s largest gold traders, over allegations of large-scale black market transactions. Raids are being conducted at around 15 locations in Hyderabad, Warangal and Vijayawada, including the company’s headquarters in Banjara Hills.
According to officials, Caps Gold has been purchasing gold in bulk from the Mineral Development Corporation and supplying it to retail jewellers. Investigations revealed that the company was also sourcing gold from the black market and diverting large quantities for unaccounted sales.
The IT Department is also conducting searches on wholesale firms linked to Caps Gold. Preliminary findings suggest large-scale tax evasion and fraudulent transactions.
