Income Tax Department launched a series of raids for the fourth consecutive day in the bustling city of Proddatur, situated in Andhra Pradesh’s YSR district. Known for its thriving gold business, Proddatur is often referred to as the “second Mumbai” due to its prominent position in the jewelry trade. With over 2,000 jewelry shops, the city has gained a reputation as a hub for gold commerce, unrivaled anywhere else in the state of Andhra Pradesh.
The income tax department’s actions were instigated by a slew of complaints and information it received regarding large-scale irregularities within the gold trading community of Proddatur. Allegedly, these irregularities included the procurement of gold without proper bills and the evasion of taxes. In response to these allegations, numerous income tax department officials descended upon Proddatur and have been conducting extensive raids on various prominent jewelry stores for the past four days.
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This relentless pursuit by the income tax authorities has struck fear into other jewelry shop owners in the city, many of whom have taken a preemptive step by temporarily closing their stores to avoid similar IT raids. It’s estimated that over 1,000 jewelry shops have shut their doors to weather this storm of investigations.
However, the abrupt closure of more than 1,000 jewelry shops on the auspicious eve of Dussehra in Proddatur has left potential buyers bewildered. They are now left with no option but to postpone their jewelry purchases, as the city grapples with these unprecedented developments in its thriving gold market. The situation continues to evolve as the income tax department’s investigations persist.
