BENGALURU: As part of its tax evasion investigations against some Karnataka-based contractors and others connected to them, the Income Tax Department on Friday discovered more than Rs 42 crore in cash hidden in a residential building here, according to official sources. Prior to assembly elections in five states, the searches set off a political brawl between the BJP and the Congress, which are currently in power in Karnataka. According to official sources, the department has sent out cash counting devices and more personnel to determine the total quantity of cash recovered. The searches are currently in progress. According to officials, a substantial portion of the cash was taken from a vacant apartment block in Karnataka’s capital where it was kept hidden in cardboard boxes. More over Rs 42 crore in cash has been found so far, and searches are still being conducted. The department is also looking into whether this money, which seemed to be undeclared, was intended to be transferred to nearby Telangana, where assembly elections will be conducted next month. The recovery was the focus of criticism from BJP leader and former deputy chief minister C N Ashwath Narayan, who claimed that the funds were obtained from contractors as commission to finance elections in five states. “This provides proof to support the ‘ATM government’ charges (against the Congress government). This is the little consignment of the ‘ATM government’ collection that has been discovered. There are many such items.This cash has been collected. He asked more contractors to speak up about the money they had reportedly paid, adding, “This is just a sampling. Speaking to reporters, BJP leader and MLC N Ravi Kumar asserted that the money taken from the contractor’s premises had a value of Rs 42 crore and that it was kept there in 23 boxes of notes with a value of Rs 500. He claimed that there was talk in the city that the funds were raised for the Telangana elections and claimed they were funds obtained as “commission” to pay off contractors’ outstanding debts to the government totaling Rs 650 crore. Ravi Kumar wanted an investigation. Similar accusations have been made against the in charge Congress by a number of senior BJP leaders. Siddaramaiah, the chief minister of Karnataka, rejected the “baseless” accusations and declared that “no state (unit of Congress) will ask (for money). We won’t also give it… Do you have a copy? Has the money handed to other states been viewed by the BJP members who are making the accusations? What justifies making such unfounded claims? When asked about the I-T searches, Deputy Chief Minister D K Shivakumar responded, “Without politics, I-T won’t come. Politics is what is taking place. We are also aware of what is going on in Telangana, Chhattisgarh, and other states. Nothing will occur when the BJP is in power; when it is not, these things occur.D Kempanna, the president of the Karnataka State Contractors’ Association, was questioned regarding rumours that thousands of rupees in cash had been found in one of the organization’s office holders’ homes. He said that the contractor had various other enterprises, including farming and stone crushing, and had not been involved in any contract work for eight years. He emphasised that the law would run its course.
