Hyderabad: The Income Tax (I-T) department has conducted searches on CapsGold Company and the Vasavi realty group in Hyderabad. The raids were initiated following allegations of large-scale black market transactions and tax evasion.

Officials stated that the IT department carried out searches on CapsGold, one of the country’s largest gold traders. The raids were conducted at around 15 locations in Hyderabad, Warangal, and Vijayawada, including the company’s headquarters in Banjara Hills.

Investigations revealed that while CapsGold purchased gold in bulk from the Mineral Development Corporation, it was also allegedly 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 CapsGold, with preliminary findings suggesting widespread tax evasion and fraudulent transactions.

Another IT team conducted searches at the offices of the Vasavi realty group, a leading real estate company in the city.

Officials seized several documents and are in the process of scrutinising the company’s IT return filings for the past two years.