On 12th October, the Income Tax Department launched an anti-corruption operation which ended on 15th October, during which, it raided 55 locations across Bengaluru and several cities in Telangana, Andhra Pradesh, and Delhi. The raids were carried out on properties related to some government contractors, real estate developers and their associates across these four states.
According to a statement by the Central Board of Direct Taxes (CBDT), the operation conducted by the Income Tax department resulted in the seizure of a staggering Rs 94 crore in cash, alongside gold and diamond jewelry valued at over Rs 8 crore. CBDT added that approximately 30 luxury foreign wristwatches were also discovered during these raids.
The CBDT, which is IT department’s policy making body, also informed that substantial amount of “incriminating” evidence were also recovered during these raids. This included loose sheets, hard copies of documents, and digital data that were seized from the entities and their associates under scrutiny.
On condition of anonymity, an official said, “The raids that started on Thursday at 25 places belonging to two major infrastructure companies expanded to 45 places by Saturday evening.”
He added, “A total of 45 locations were searched till Friday while ten more places were raided and searched on Saturday. On Saturday, the third day of the operation, an architect and a gymnasium owner’s house was raided from where Rs 8 crore in cash was seized. With this, the total amount of cash seized has crossed Rs 50 crore.”
During another series of raids, the IT team confiscated Rs 94 crore in cash, along with gold and diamond jewelry valued at Rs 8 crore and 30 luxury watches. These raids were aimed at government contractors and real estate developers in Karnataka and several other states.
A source privy to the information said, “The income tax wing alleged the involvement of contractors in reducing their income through inflated expenses such as booking bogus purchases, making non-genuine claims and asserting ineligible expenses. This led to the generation of unaccounted cash and creation of undisclosed assets.”
During these raids, one of the individual raided by the Income Department includes contractor R. Ambikapathy. He is the office-bearer of multiple contractors’ associations in Karnataka. It is noteworthy to mention that Ambikapathy gained prominence during a campaign led by the Karnataka Contractors’ Association before previous elections. The campaign had accused the previous BJP government of charging a ’40 per cent commission’ for State Government contracts.
According to media reports, the IT department discovered cash worth more than Rs 42 crore concealed in 23 boxes beneath a bed in a flat at Sultanpalya where Pradeep, a close relative of contractor Ambikapathy, lived.
Following the raids, multiple contractors said that Ambikapathy had not been taking big contracts for almost 10 years now, due to his health issues. A senior contractor said, “He was not doing work to the tune that could get him large liquid cash, which has made us suspicious. It needs to be probed as to whose money it was.”
In wake of the IT raids and seizures worth more than Rs 100 crores, BJP’s state president, Nalin Kumar Kateel alleged that the seized money was linked to the Congress.
BJP says Congress High command gave Karnataka govt target of Rs 1000 crore to fund the party
After the seizures, opposition parties, including BJP, JD(S) and BRS, have alleged that Congress government in the state is collecting funds for upcoming state assembly elections in five states. Bharat Rashtra Samithi (BRS) alleged that the money was meant for spending in Telangana elections by Congress.
JDS leader and Former Karnataka Chief Minister H D Kumaraswamy also alleged that the Rs 42 crore cash unearthed at contractor R Ambikapathy’s house by IT department was meant to be transported to Telangana.
Similarly, the Bharatiya Janata Party (BJP) said that the Congress high command has given a target to its state government to ‘collect’ Rs 1,000 crore to fund the party. As per the allegations raised by the BJP, Congress was planning to send Rs 300 crore to Telangana, Rs 100 crore to Mizoram, Rs 200 crore each to Chhattisgarh, Rajasthan and Madhya Pradesh respectively.
Sharing a news reporting about the seizures, Union Minister Rajeev Chandrashekhar asserted that Congress leaders Rahul Gandhi, Siddaramaiah, DK Shivakumar and their cronies have amassed enormous wealth.
On 16th October, the BJP minister tweeted, “A few days it was only 42 crores and I had predicted it was tip of iceberg – and so it was. Tdy the cash, gold haul details came out and its 102 crores. Note the 40 luxury watches – perhaps siddaramaiahs 75 lac Hublot also stored with Ambikapathy & “contractors”. Rahul, Siddaramaiah, DK Shivkumar and their cronies are like a bottomless pit of loot – more you dig, the more you unearth.”
💰💵💷A few days it was only 42 crores and I had predicted it was tip of iceberg – and so it was. Tdy the cash, gold haul details came out and its 102 crores 😳😳
— Rajeev Chandrasekhar 🇮🇳 (@Rajeev_GoI) October 16, 2023
💰💵💷Note the 40 luxury watches – perhaps siddaramaiahs 75 lac Hublot also stored with Ambikapathy &… https://t.co/6gZhoMNrz7 pic.twitter.com/Zs78Pwvff7
BJP leader CT Ravi said, “We had earlier alleged that the state (Karnataka) would be an ATM for the Congress Government. That has turned out to be true. The truth will come out after enquiry. We are demanding a CBI inquiry.”
