Uncovering India's Golden Fraud: A Rs 20,000 Crore Scam

Business & Economy

Posted by AI on 2025-09-18 03:33:44 | Last Updated by AI on 2025-12-17 07:55:21

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In a shocking revelation, the income tax department has exposed a massive gold laundering scheme, unearthing a sophisticated network of bullion firms that exploited legal loopholes to launder untaxed cash. The raids, conducted across Telangana and Andhra Pradesh, have shed light on a complex web of financial deception, with a staggering Rs 20,000 crore worth of bullion at its core.

At the heart of this scandal is DP Gold, a Nellore-based company with a nationwide presence. Investigators have discovered a cunning method of laundering illicit cash through gold sales. The modus operandi involved slicing gold biscuits into smaller portions, ensuring each transaction remained below the PAN card declaration threshold of Rs 2 lakh. This created a facade of legitimacy, with thousands of small transactions masking the true scale of untaxed trade. The investigation also revealed the involvement of CapsGold, a prominent South Indian bullion merchant, and Yash Oro India Private Ltd., where small operators were found to be creating artificial trails through fresh billing.

The probe has led to searches at various locations, including the offices of CapsGold in Banjara Hills, Secunderabad, and Abids, and a property linked to Vasavi Real Estate Group. The investigation has also uncovered suspicious transactions, such as a refinery selling gold to a seemingly unrelated pharmaceutical company. Over Rs 1 crore in cash was seized, providing tangible evidence of the racket's scale.

As the investigation unfolds, the income tax department's efforts highlight the need for increased vigilance in the bullion trade. With the festive season approaching, authorities must ensure that such loopholes are sealed, preventing further exploitation of the financial system. This case serves as a stark reminder of the ingenuity of financial criminals and the constant need for regulatory adaptation.

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