By Mouli Mareedu

Copyright deccanchronicle

Hyderabad: With income tax (IT) department officials continuing raids for the fourth consecutive day on Saturday on Caps Gold Private Limited, Vasavi Group of companies and other firms over suspected financial irregularities, the directorate of enforcement (ED) also kept a close watch on possible fund diversion.The raids, which began on Wednesday, focused on Caps Gold Private Limited, also known as Chanda Anjaiah Parameshwar (CAP), one of the country’s leading gold and silver bullion merchants. IT officials targeted its directors and their associated real estate firms on suspicion of tax evasion in the last financial year’s income tax returns. Searches were simultaneously carried out on Vasavi Group of companies and their real estate ventures, where Caps Gold directors are partners. Officials suspect large-scale fund diversion through cash transactions that contributed to tax evasion. In the presence of company auditors, IT teams brought some Vasavi partners to banks and opened lockers, reportedly seizing documents, gold and other valuables. They later moved to Vasavi’s head office in Banjara Hills and questioned the partners. Though searches covered Caps Gold chairman Chanda Narsimha Rao, managing director Chanda Venkatesh and directors, including Sreenivas Rao Chanda and Abhishek Chanda, investigators focused on Sreenivas Rao, Abhishek, and others who had invested in Vasavi real estate projects. IT teams reportedly found that Caps Gold supplied bullion to jewellery merchants and shops, received cash payments and diverted the money. Abhishek Chanda is linked to multiple entities, including Kalasha Realtors, Vasavi Group, Vasavi Drisha Realtors, Vasavi Incredible Realtors, Vasavi Realtors and Developers, Vasavi Holistic Corporate Services, Sree Nandan Builders and Developers, Vasavi Buildox, Lorven Gold and Jewellery, Kalasha Infra Con, Vasavi Craft, Vasavi Pioneers, Vasavi Signet, Value Gold Private Ltd and Caps Gold itself. Following the sustained raids, ED officials are closely monitoring developments and are likely to register an Enforcement Case Information Report (ECIR) given the scale of suspected violations. Sources indicated that the ED may also step in if the case attracts provisions of the Prevention of Money Laundering Act (PMLA).