The Income Tax Department on Wednesday launched extensive raids on Vasavi Groups, a prominent real estate firm in Hyderabad, alongside CapsGold Pvt. Ltd., a well-known bullion and jewellery company with offices in Hyderabad, Secunderabad, Vijayawada, Bengaluru, and Mumbai.

Officials deployed 15 teams to conduct searches across multiple locations, including Vasavi Groups’ Banjara Hills office and sites linked to the company, as well as CapsGold’s offices in Banjara Hills, Secunderabad’s Kalasiguda branch, and the head office in Abids. Residences of key promoters and directors were simultaneously raided.

The operations are part of a larger investigation into alleged tax evasion, particularly in gold sales and promotional schemes, with authorities scrutinizing stock, sales data, and financial records. With the Diwali festival approaching, officials are monitoring transactions to prevent irregularities in gold and silver sales, including CapsGold’s electronic trading operations.

CapsGold, originally founded in 1901 as Chanda Anjaiah Parameshwar (CAP), has grown into one of South India’s top bullion merchants. The family-run business expanded from wholesale gold and silver trading into retail jewellery outlets across the region. The company is chaired by Chanda Narasimha Rao, with Srinivas Chanda, Sreenivas Rao Chanda, Venkatesh Chanda, and Chanda Sudhir serving as directors. Chanda Abhishek, also linked to Vasavi Groups, is among the directors under scrutiny.

Vasavi Groups, connected to CapsGold, is a major player in real estate, with 40 associated companies under investigation. Directors Abhishek and Soumya, linked to both CapsGold and Vasavi, are facing raids at offices and residences.

The Income Tax Department’s focus on both firms underscores heightened scrutiny of gold trading and real estate sectors amid festival season. Authorities are continuing the operations, which are expected to extend through Thursday, aiming to uncover any potential financial irregularities and ensure compliance with tax regulations.

The raids signal the government’s intensified action against suspected tax evasion in bullion, jewellery, and allied businesses, reflecting increased vigilance on financial practices in high-value trading and property sectors.