Rs 19.69 cr cash, jewellery worth Rs 4.81 cr seized before Karnataka polls

Speed Post News Network

New Delhi : State Election Machinery and Income Tax Department have stepped up their action against misuse of money in Karnataka Assembly election and for the first time teams with statutory powers and sufficient resources in terms of manpower, vehicles etc. have been posted in each district of the state.

Total cash seizure as on April 30, 2018, is Rs 19.69 crore and unexplained jewellery of value Rs 4.81 crores has been made by the Investigation Wing of Income Tax department in Karnataka after the start of the Assembly election related surveillance.

In 2013, Karnataka State Assembly Elections, the total seizure made in the entire campaign period was only Rs 4.97 crore cash and Rs 3.41 crore worth of jewellery. It has been found that the bulk of cash seized during operations in the present Assembly Elections was meant for distribution. The Investigation Wing of the Income Tax Department has been doing intensive surveillance and monitoring activities in the State.

Based on the intelligence, search & seizure operations were conducted on several government contractors between April 24 and April 26, 2018. This resulted in a seizure of unaccounted cash of Rs 6.76 crore from four such contractors in Mysore area. The entire amount seized was in higher denomination notes i.e. Rs 2,000 and Rs 500 and the bulk of the seizure was made from lockers in benami names. The cash found and seized was not reflected in the books of account maintained by the contractors and they could not explain the source of the cash, according to a PIB release.

Hoarding of huge cash by these persons at a time when the election process is in progress and when cash shortages are reported in some areas in the state raises troubling questions.

Based on the specific intelligence that cash is hoarded by Government contractors for being used for election purposes, search action was initiated in the cases of 3 contractors in Bangalore, Davangere and Mysore on April 26, 2018 and were concluded on April 28, 2018. Unaccounted cash of Rs 4.08 crore and unexplained gold jewellery worth Rs 2.79 crore  were seized. In one of the contractor’s case, Rs. 1.2 crore cash was found in a moving car.

During the search, evidences were found showing inflation of purchases, bogus sub-contractor and labour payments and unaccounted cash payments. The searched party admitted an additional income of Rs 74.39 crore.

Based on the intelligence inputs that one person was funding certain candidates of a particular party, a search was conducted at 2 business premises and 1 residence at Bengaluru, which continued for 32 hours and resulted in seizure of Rs 3.18 crore cash. The search concluded on early hours of April 29. Rs 2 crore was found in a car parked closed to the main person’s residence, which was found by the department after thorough rummaging of his premises and belongings.