BENGALURU: Sleuths of the I-T Department seized Rs 42 crore in cash from the residence of R Ambikapathy, vice-president of the Karnataka Contractors’ Association, here on Friday. This is touted as one of the high-profile IT raids in which a huge stash of cash has been seized in recent times.
Ambikapathy is the husband of ex- corporator Ashwathamma, who is said to be the sister of a ex-Congress MLA, who contested as an independent in the May 10 Assembly polls and lost.
Haul of gold jewellery unearthed
The taxmen, who have been conducting search and seizure operations for the past few days in the city for alleged tax evasion, continued their operations and raided more than five locations linked to contractor Ambikapathy, his family members and others who have business ties with him.
Sources said raids were conducted at RT Nagar, Sultanpalya, Kaval Byrasandra, Manyata Tech Park and other places in the city on Thursday evening. The raids continued till Friday night. “At the residence of Ambikapathy at Atmananda Colony in Sultanpalya, wads of currencies in Rs 500 denomination were kept discreetly in carton boxes, which were hidden under a cot. The room was locked and the family members did not use it,” the sources said.
A huge quantity of gold jewelry was also found in the house during the raid, the sources said. It is said that the cash seized was meant to be transported to Telangana and other poll-bound states and that it was supposed to be paid as kickbacks to politicians and bureaucrats to get the pending bills of contractors cleared. Officials, however, said that this will be known only after a detailed investigation.
With the huge amount of cash found in the house, the IT Department is likely to inform the Directorate of Enforcement (ED), which may take up a case of money laundering against Ambikapathy.
Ambikapathy was one among the five contractors, including Karnataka Contractors’ Association president Kempanna, arrested in December last, by the Vyalikaval police, for not appearing before the court in a defamation case filed by former minister Munirathna of the BJP for making the ‘40% commission’ charge.
BJP, JDS allege Rs 42 crore unearthed from contractor's flat meant to fund Congress in TS polls
BENGALURU: An IT raid on a contractor in Bengaluru where Rs 42 crore was unearthed from his flat on Friday resulted in a political slugfest between the three major political parties in the state. Opposition BJP and JDS slammed the ruling Congress government alleging that the money was meant to fund its party candidates in the Telangana Assembly election.
JDS senior leader HD Kumaraswamy and BJP general secretary and MLC N Ravikumar, speaking along the same lines, alleged that Congress collected the money from BBMP contractors to fund the elections in five states. Ravikumar sought a probe, saying the money has been seized after the government released dues of Rs 650 crore to contractors which Deputy Chief Minister and Bengaluru Development Minister DK Shivakumar was reluctant to do, but ceded after several rounds of talks with contractors. He said both Chief Minister Siddramaiah and Shivakumar should resign on moral grounds.
Shivakumar said, “There is no IT raid in the country without a political motive. Raids are happening not only in Karnataka, but also other states.” On the allegation that Rs 42 crore was the commission from Rs 650 crore released to contractors and is being sent to Telangana through the main accused, Ambikapathy, he said, “I don’t know about it.”
Kumaraswamy alleged that it was Shivakumar who has organised to get the money collected and stashed ahead of the Assembly elections in five states. He taunted Siddaramaiah, asking which investigative agency will now be asked to probe it. He alleged that soon after the elections were declared to five states, the collection of money begand. “Whose money was seized in the contractor’s (R Ambikapathy) house,” he asked.
He said, “After Rs 650 crore was released to contractors, this Rs 42 crore caught the eyes of IT authorities. This means the allegations of commission being collected by this government are true. What is the percentage and who is the man behind it?”He alleged that Congress has continued to use Karnataka as an ATM to fund polls. “Farmers are troubled by drought and power crisis, while contractors are in dire straits. But the collection of commission is rampant,” he said.