BENGALURU: The ongoing income-tax department raids in the state following demonetisation have given Chief Minister Siddaramaiah a new headache. Detection of undisclosed assets worth over Rs 162 crore at the premises of Small Scale Industries Minister Ramesh Jarkiholi and State Mahila Congress president Lakshmi Hebbalkar has propelled the party to seek an explanation from the duo.
There is also speculation that Congress MLA Satish Jarkiholi, who is set to meet Siddaramaiah in Bengaluru on Wednesday, may replace his brother Ramesh in the ministry, provided the assets unearthed are confirmed as "unaccounted and prove tax evasion".
State Congress leaders, including Siddaramaiah, who had called the raids political witch-hunting of the opposition parties by the Narendra Modi government, have been forced to go on the defensive with the "unaccounted riches" unearthed by the I-T sleuths.
The I-T raids "exposed" undisclosed assets worth Rs 162 crore, including Rs 46 lakh cash in new Rs 2,000 notes and over 12kg in gold and jewellery from the premises of the minister and the Mahila Congress chief.
Apprehending the potential damage to the party’s image, Karnataka Pradesh Congress Commission President G Parameshwara sought an explanation from Ramesh and Hebbalkar. Based on their explanation and I-T investigations, the party leadership will take appropriate action.
For now, the embarrassment has come after the unsavoury exit of excise minister HY Meti, who was caught in a sex scam. According to Congress sources, Parameshwara has asked Ramesh to be prepared to quit as the party high command is taking a serious view of the issue. Hebbalkar too may face the axe.
Siddaramaiah has refused to comment on the raids, saying he is unaware of the details. "I-T department does not report to me as it is under the union government," he said.
According to I-T officials, the department has also got inputs about a number of “benami” assets and “unexplained investments” during the searches at the premises of Ramesh and Hebbalkar in Gokak, Belagavi.
While Ramesh has termed the raids as a political conspiracy by the BJP government at the Centre and expressed confidence of coming out clean, health minister Ramesh Kumar has demanded a merciless crackdown on hoarders of black money cutting across party lines. "Whether one belongs to Congress, BJP or JD(S), black money hoarders should be crushed mercilessly. They should get severe punishment," he said.