An Election Commission flying squad late Monday evening seized Rs 20 lakh from a car in Bhiwandi town in Maharashtra's Thane district, an official said.
The driver of the vehicle, which was stopped at Saibaba check post, could not give satisfactory answers to questions about the ownership of the money, he said.
The Income Tax department has been informed and they would probe further, he added.
Maharashtra Assembly polls are scheduled for October 21 and the model code of conduct is in force across the state.
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