In one of the largest recent crackdowns on alleged tax evasion in the retail apparel sector, the Income Tax Department has seized 10 kilograms of gold and Rs. 1 crore in unaccounted cash following a five-day-long series of searches on premises linked to Go Fashion (India) Ltd, the company behind the popular women’s apparel brand Go Colors.

According to official sources, the raids were conducted simultaneously across more than 35 locations in Chennai and Bengaluru, including the company’s corporate offices, retail outlets, and residential premises of key promoters. Over 300 officers from various units of the Income Tax Department participated in the operation, which began early last week based on specific intelligence inputs about large-scale tax evasion.

While most of the search operations concluded within two days, a few key locations — including the residences of company proprietors Vinod Sarogi and Prakash Sarogi on Chamiers Road, Chennai — continued to be searched until Saturday morning. 

The quantum of tax evasion is still being assessed. The teams are examining the methods allegedly adopted by the company and its associates to conceal income and underreport profits.

Preliminary findings suggest that substantial volumes of sales and inventory transactions were not reflected in the company’s official books of accounts. Several documents, digital records, and hard drives have been seized for forensic examination. The seized gold and unaccounted cash are suspected to be proceeds from undeclared income, officials added.

The company, in a regulatory filing, confirmed that searches were conducted by the Income Tax Department at its offices and other locations. It stated that it is fully cooperating with the authorities and that business operations remain unaffected.

Go Fashion (India) Ltd, listed on both the NSE and BSE, is a prominent player in the women’s bottom-wear segment and markets its products under the Go Colors brand through exclusive outlets and large-format stores across India.

As per officials, the ongoing scrutiny aims to determine the full extent of tax liabilities and undisclosed income, with a final report expected after the completion of document verification and financial analysis. Some of the remaining search operations are expected to conclude by Sunday.

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