IT Department Raids CAP Gold and Vasavi Group: Unveiling Suspected Tax Evasion
The Income Tax Department conducted raids on CAP Gold, a leading bullion merchant, and its directors, along with associated real estate firms, over suspected tax evasion. Simultaneous searches were also carried out at the offices of Vasavi Group, a prominent real estate firm in Hyderabad.
Tax EvasionCap GoldVasavi GroupIncome Tax RaidsReal Estate InvestmentsReal EstateSep 17, 2025
Starting around 6 am, nearly 15 teams of officials, armed with previous ITRs and balance sheets, raided the CAP Gold headquarters in Secunderabad and the residences of its board of directors across Hyderabad, Warangal, and other locations.
Officials revealed that several directors of CAP Gold had also invested in real estate ventures. Consequently, simultaneous searches were conducted at the offices of Vasavi Group, a prominent real estate firm in Hyderabad, including its office in Banjara Hills.
According to sources, the residences of CAP Gold chairman Chanda Narsimha Rao, managing director Chanda Venkatesh, and directors Sreenivas Rao Chanda, Abhishek Chanda, Sowmya Chanda, and others were searched. CAP Gold, a bullion merchant, supplies gold in bulk to jewelry shops and merchants.
Investigators suspect that cash transactions may have been routed from CAP Gold to Vasavi Group, leading to discrepancies in ITR filings. Several CAP directors, including Sreenivasa Rao Chanda, Abhishek Chanda, and Sowmya Chanda, are also investors and directors in Vasavi Group companies.
During the searches, IT officials obtained detailed information on ITRs filed by CAP Gold and Vasavi Group, the purchase of gold stocks and supply to customers, forms of transactions, and balance sheets. The IT officials also collected details of Vasavi Group's investments in purchasing lands, constructing apartments, and the purchase of land by customers, along with payment modes from customers based on current account statements. Notably, Abhishek Chanda is the director for 15 companies, including Vasavi Group of companies.
The raids are expected to shed light on the financial practices of these companies and their compliance with tax laws. The IT Department is committed to ensuring transparency and accountability in the financial sector, particularly in high-value transactions involving bullion and real estate.
Frequently Asked Questions
What is CAP Gold Private Limited?
CAP Gold Private Limited, also known as Chanda Anjaiah Parameshwar (CAP), is one of India’s leading gold and silver bullion merchants. It supplies gold in bulk to jewelry shops and merchants.
Why did the Income Tax Department raid CAP Gold?
The raids were conducted to investigate suspected tax evasion in the last financial year’s income tax returns (ITRs). Officials suspect that cash transactions may have been routed from CAP Gold to real estate firms, leading to discrepancies in ITR filings.
Which other companies were involved in the raids?
Simultaneous searches were conducted at the offices of Vasavi Group, a prominent real estate firm in Hyderabad, including its office in Banjara Hills.
Who are the key figures in CAP Gold and Vasavi Group?
Key figures in CAP Gold include Chanda Narsimha Rao (Chairman), Chanda Venkatesh (Managing Director), and directors Sreenivas Rao Chanda, Abhishek Chanda, and Sowmya Chanda. Abhishek Chanda is also a director for 15 companies, including Vasavi Group.
What information did the IT officials collect during the raids?
IT officials collected detailed information on ITRs filed by CAP Gold and Vasavi Group, the purchase of gold stocks and supply to customers, forms of transactions, and balance sheets. They also gathered details of Vasavi Group's investments in land, construction, and customer transactions.
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