Tag: hyderabad

Income Tax Department takes major action in Hyderabad, busts ₹20,000 crore gold laundering racket

Major Gold Laundering Racket Uncovered in India

The Income Tax Department has uncovered a massive gold laundering racket worth nearly Rs. 20,000 crore during raids on leading bullion firms in Telangana and Andhra Pradesh. The crackdown has exposed how black money was being converted into gold through thousands of small transactions that appeared legitimate on paper.

Officials confirmed that raids were carried out on three major bullion companies: DP Gold, CapsGold, and Yash Oro (Yashora). DP Gold, which is based in Nellore and has expanded its operations to Hyderabad, Vijayawada, Mumbai, and Chennai, was at the center of the investigation. The company, owned by Dilip Kumar Jain and associates, reportedly handled gold worth thousands of crores each year.

Investigators found that unaccounted cash was turned into gold by slicing gold biscuits into smaller pieces of 20 grams. These were wrapped in paper and sold in small transactions, each purchase deliberately kept below Rs. 2 lakh. This strategy allowed the traders to bypass the rule that requires buyers to provide their Permanent Account Number (PAN) for higher-value purchases. By repeating such small sales thousands of times, the companies created an artificial trail that masked huge volumes of untaxed trade.

Raids were also conducted at CapsGold’s offices in Banjara Hills, Secunderabad, and Abids, along with the homes of its directors. Established in 1901, CapsGold is one of India’s oldest and largest bullion merchants. The search also extended to the Vasavi Real Estate Group, as one of its promoters is related to a director at CapsGold.

At Yash Oro in Banjara Hills, run by brothers Ritesh and Rajesh Naredi, investigators uncovered how small operators deposited cash and created fresh bills to launder money. In one suspicious case, a refinery sold gold worth crores to a penny stock pharmaceutical company in Gujarat, which trades at less than one rupee per share. Officials also found that in several instances, gold was formally purchased from banks but the funds eventually circled back as repayments, suggesting cash was the real medium of exchange.

During the raids, officials seized more than Rs. 1 crore in cash. Authorities believe the uncovered scheme resembles methods seen during the demonetisation era, when traders used fragmented transactions to conceal large volumes of black money. The Income Tax Department has stated that it will continue tracing the money trail to expose everyone involved in this racket.

Tax Raids Target Ex-Chevella MP Ranjith Reddy and DSR Group in Hyderabad

Income Tax Raids on Former MP G Ranjith Reddy and DSR Group Executives in Hyderabad

HYDERABAD: Income Tax officials conducted searches at the residences and offices of former Chevella MP G Ranjith Reddy in Hyderabad, as well as at the offices and residences of the managing director, CEO, and other senior executives of the DSR Group, from the early hours of Tuesday.

According to sources, 15 teams of I-T officials carried out the raids at multiple locations, including Jubilee Hills, Banjara Hills, SR Nagar, and Suraram in Hyderabad, along with premises in Bengaluru and Nellore. The searches were linked to suspected financial irregularities and tax evasion over the past three years.

Officials reportedly found discrepancies in filed returns, with income details allegedly suppressed. They are said to have recovered agreements, vouchers, logbooks, and other material evidence pointing to off-record transactions not reflected in I-T filings. Sources indicated that Ranjith Reddy had been involved in joint ventures with the DSR Group in recent years.

The I-T teams are examining transactions between Ranjith Reddy’s companies and the DSR Group in connection with certain construction projects, some of which were allegedly not fully disclosed in returns. Preliminary findings suggested differences between declared income and actual financial activity. Several documents related to agreements between DSR and Ranjith Reddy’s companies were reportedly seized.

The searches were expected to continue late into Tuesday night. Agency officials are likely to summon those concerned to furnish details, including bank statements, I-T returns, and supporting documents. Sources also mentioned that raids were conducted at Srinivasa Constructions, linked to Venkata Krishna Reddy, who faces allegations in the Andhra Pradesh liquor scam case in connection with key accused Raj Kesireddy. Officials reportedly seized several agreements between Srinivasa Constructions and the DSR Group, which are said to have executed several projects as a joint venture.

AI Font Forensics Uncovers Rs 68 Lakh LTCG Fraud in Hyderabad

Digital Forensics and AI Revolutionize Tax Enforcement in Hyderabad

HYDERABAD: A recent case has highlighted the transformative impact of digital forensics and generative AI tools on tax enforcement. The income tax (I-T) department has uncovered a significant instance of tax evasion involving forged improvement bills that were submitted in an attempt to reduce capital gains liability.

The case centers around a taxpayer in Hyderabad who sold a piece of immovable property for Rs 1.4 crore. In his income tax returns, the taxpayer attempted to drastically lower his capital gains liability by claiming deductions amounting to Rs 68.7 lakh under the category of ‘cost of improvement with indexation,’ alongside an indexed acquisition cost of Rs 73 lakh. This led to the declaration of long-term capital gains (LTCG) of just Rs 24,774.

The fraudulent activity came to light when AI tools conducted a thorough analysis of the documents submitted. They flagged a particular issue with the font utilized in one of the documents, revealing that it did not exist in the year it was supposedly issued.

AI Flags Fake Document Through Calibri Font

The claimed cost of improvement covered the years from 2002-03 to 2007-08, and the original value of Rs 24 lakh was indexed to Rs 68.7 lakh. To support his claim, the taxpayer had submitted photocopies of expenditure bills dated between 2002 and 2008. One such bill, dated July 6, 2002, which indicated an expense of Rs 7.68 lakh, raised suspicions within the I-T department.

A forensic examination by investigators employing generative AI tools revealed that the document’s text was formatted in ‘Calibri (body)’ font. Notably, the font was designed between 2002 and 2004 but was not made available to the public until 2006, eventually becoming the default font for Microsoft Office in 2007. Since Calibri was not in existence at the purported time of the bill issuance, officials concluded that the document was indeed fabricated.

In his defense, the taxpayer claimed that the copies of these bills were discovered in an old folder belonging to his late father but admitted that he could not verify their authenticity. Consequently, he withdrew his claim, filed a revised return excluding the cost of improvement, and paid taxes based on the corrected capital gains.

This case serves as a stark reminder of the critical role that digital tools and forensic analysis play in identifying and addressing tax evasion, reinforcing the integrity of tax systems.

CBI Takes Action Against Five Income Tax Officials and a Chartered Accountant in Hyderabad

CBI Registers Case Against Income Tax Officials Over Taxpayer Extortion

The Central Bureau of Investigation (CBI) has registered a case against six individuals, including five officials from the Income Tax Department based in Hyderabad, and a chartered accountant, due to allegations of cheating taxpayers.

The accused officials comprise two Income Tax Inspectors and three Senior Tax Assistants. They are accused of misusing sensitive tax data to extort money from taxpayers. The CBI reports that these public servants allegedly conspired with a chartered accountant to unlawfully gain financial benefits.

The allegations detail how they exploited information circulated by the Income Tax Department on taxpayers claiming high tax refunds. Under the guise of conducting inquiries, the officials reportedly contacted these taxpayers, threatening them with heavy penalties unless they made payments. The misappropriated funds were then funneled into the accounts of the chartered accountant before being redirected to the accused officials.

As part of the investigation, the CBI conducted searches at six locations connected to the accused in Hyderabad, recovering incriminating documents. The investigation is currently ongoing.

Income Tax Department Raids Film Producers Following Recent Blockbuster & Pushpa 2 Success

The Income Tax Department executed raids on Tuesday at the residences and workplaces of notable film producers Dil Raju, Ravi Shankar Yalamanchili, and Naveen Yerneni in Hyderabad. These individuals are behind the recent projects such as Game Changer, Sankranthiki Vasthunam, and Pushpa 2: The Rule.

IT Raids on Film Producers

According to sources, law enforcement conducted searches at eight different sites across Hyderabad, including the homes, offices, and an online platform associated with these producers. Dil Raju, whose full name is Velamkucha Venkata Ramana Reddy, is a significant figure in the Telugu cinema scene and the owner of Sri Venkateswara Creations. Recently, he was appointed as the chairman of the Telangana Film Development Corporation. Both Ravi and Naveen are co-founders of Mythri Movie Makers, also well-established in the film sector.

These raids come in the wake of the success of Venkatesh’s Sankranthiki Vasthunam for Raju, along with Pushpa 2: The Rule starring Allu Arjun, produced by Ravi and Naveen. Additionally, Raju was involved in producing Game Changer, which received a mixed reception. All three films had substantial budgets and were launched recently. Reports indicate that the investigations are aimed at suspected tax evasion, with more information expected to be released soon by the IT department.

According to Sacnilk, Pushpa 2: The Rule has grossed ₹1228.25 crore net across India and ₹1734.65 crore worldwide since its premiere on December 5. Game Changer has brought in ₹125.4 crore net in India and ₹179.55 crore globally following its release on January 10. Sankranthiki Vasthunam earned approximately ₹122.78 crore net in India since its debut on January 14.

Recent Film Projects

Dil Raju’s Sri Venkateswara Creations gained fame and financial success in the early 2000s with hits like Dil, Arya, and Bommarillu. In 2023, he produced Varisu featuring Vijay and co-produced Shaakunthalam starring Samantha Ruth Prabhu. More recently in 2024, he was involved with the Vijay Deverakonda film The Family Star and Game Changer, while Sankranthiki Vasthunam was released in 2025.

As for Ravi and Naveen of Mythri Movie Makers, they made their production debut with the films Srimanthudu (2015) and Janatha Garage (2016). They have also supported significant films such as Rangasthalam, Dear Comrade, and Gang Leader. Following their work on Pushpa 2: The Rise, they are producing several upcoming projects, including Ajith Kumar’s Good Bad Ugly, Sunny Deol’s Jaat, Pawan Kalyan’s Ustaad Bhagat Singh, and Rishab Shetty’s Jai Hanuman.

Man Arrested for Allegedly Cheating Chartered Accountants of Rs 2.48 Crore in Hyderabad

An individual named Srinath Rathi, aged 29 and residing in Kacheguda, Hyderabad, was arrested by the Detective Department’s Economic Offences Wing (EOW) for allegedly cheating Chartered Accountants of Rs 2.48 crore.

Srinath collected money from the Chartered Accountants under various pretenses and failed to repay them, resulting in charges of cheating. After being produced before the court, he was remanded in judicial custody.