Income Tax Department Busts ₹20,000 Crore Gold Laundering Racket in Hyderabad

The Income Tax Department has uncovered a massive gold laundering racket valued at approximately Rs 20,000 crore across Telangana and Andhra Pradesh. Focused primarily on Caps Gold Company, one of India’s leading bullion merchants, the investigation included simultaneous raids at 15 locations in Hyderabad, Warangal, Vijayawada, and other cities, including Caps Gold’s headquarters in Banjara Hills. The company has allegedly been sourcing gold both from official channels and the black market, diverting large quantities for unaccounted transactions and tax evasion. Investigations also expanded to wholesale firms linked to Caps Gold, with early findings indicating large-scale fraudulent deals and significant taxation evasion. Caps Gold, founded in 1901, is a family-run business regarded as one of the top bullion merchants in India. Apart from gold trading, the company has substantial investments and real estate connections. Senior officials and directors, including Chairman Chanda Narasimha Rao and managing directors, are under scrutiny. This crackdown is a part of a wider government drive to curb illegal trade and bolster tax compliance, especially ahead of significant festive seasons where gold sales surge.