Raids by the Income Tax department on Ahmedabad-based Kushal Ltd continued on the second day as well, said sources in the department. Tax officials have seized more gold and the search and seizure operations are likely to continue on Thursday too.

Well-placed sources said that the value of the gold recovered is estimated at Rs5 crore. Sources said that experts have been roped in to evaluate the value of unaccounted assets. The scenario is likely to get clearer on Thursday or Friday.

The I-T department conducted raids on 22 locations of the company. These included offices and residences of top company officials. They are probing suspicious transactions made by the company which is alleged to have manipulated stock market transactions, artificially inflating stock prices. Huge amounts of unaccounted cash transactions have also been unearthed and are under investigation. Such transactions are suspected to have resulted in huge tax evasion, believe I-T department officials.