Income Tax sleuths seize cash, gold worth Rs 54 mn in poll-bound Karnataka

Income-Tax (I-T) sleuths seized Rs 41.3 million in cash and 4.52 kg gold jewellery valued at Rs 13.2 million during raids conducted over the last three weeks in poll-bound Karnataka, an official said on Saturday.

"Of the Rs 41.3 million seized, Rs 40.3 million is in Rs 2,000 and Rs 500 currency notes, with Bengaluru accounting for Rs 24.7 million and Ballari Rs 5.5 million," said state I-T Director-General (Investigations) G. Ramesh in a statement here.

The rich mining Ballari town is 330 km from Bengaluru.

A single-phase election to the 225-member Karnataka assembly, including one nominated, is scheduled on May 12 across the southern state, with vote count on May 15.

"We have stepped up surveillance and monitoring of activities in view of the state assembly election. Seizure in higher denomination raises eyebrows, as people are finding difficulty in drawing cash from banks and ATMs due to its shortage in some parts of the country," asserted Ramesh.

High alertness at airports and railway stations across the state led to the detection of a person carrying Rs 1.65 million in cash at one of the airports without valid proof of its source.

"A follow-up action against the accused person led to detection and seizure of additional Rs 3.7 million in his Mumbai premises. We have seized all the cash amounting to Rs 5.35 million," pointed out Ramesh.

In raid, the sleuths seized Rs 5.5 million in cash from a person to whom a contractor paid in a district and confession by the latter of concealing Rs 160 million to evade paying income tax on it.

In another case, household articles valued at Rs 95.1 million intended for distribution was found in a warehouse near Mysuru.

"Investigation revealed that the articles were meant for distribution was found in a warehouse near Mysuru," claimed Ramesh.

Rs 5.0 million cash was seized from a person, whose name and the place has not been released.

"We have set up a 24x7 control room in the city to receive election-related complaints from the public and other state agencies. Strike teams have also been formed with powers in all the 30 districts to act," said Ramesh.

The bank's investigation cell has gathered details of contract payments made in the last quarter of the fiscal 2017-18 and comparing them previous years to identify the abnormality.

"We are also co-relating bank transactions and cash withdrawals with other officials," added Ramesh.