HYDERABAD: With the Assembly elections looming on the horizon, political parties are preparing their candidates and campaign strategies while making arrangements to funnel massive funds into key Assembly segments.
Reports suggest that parties are in the process of organizing election funds to be discreetly distributed to Assembly segments via the underground financial network known as Hawala. This covert money transfer method is being employed by political party leaders to support their candidates across the state.
The modus operandi involves party leaders providing half of specific currency notes to their contesting candidates, while the other half is handed over to Hawala distributors responsible for transferring the funds.
Hawala networks, known to operate across the country, facilitate the collection and distribution of money within the state. In exchange for their services, the mafia levies a commission, which typically ranges from 15% to 20% for amounts under Rs 20 crore. This commission drops to 15% if the sum surpasses Rs 30 crore and goes up to Rs 50 crore.
Insiders revealed that fundraisers and party operators are actively implementing this strategy to send funds for the elections. The formula used to disburse the money is intriguing, yet simple.
Party leaders provide torn currency notes in denominations like Rs 100, Rs 200, or Rs 500, representing crores of rupees to the candidate and the other half to the Hawala operator. For example, if they hand over half of a Rs 100 note, it implies a transfer of Rs 1 crore, a half Rs 200 note denotes Rs 2 crore, and Rs 500 notes signify Rs 5 crore.
Once the candidate hands over the torn currency note to the Hawala operator in the segment, the latter verifies it with the serial number. If the serial number matches, the money is handed over.
Police checkpoints along their routes pose a risk, as vehicles are frequently checked and large sums of money can be confiscated. To mitigate this risk, candidates take precautions and employ experts to ensure a smooth fund transfer process. They often schedule transfers during the early morning hours, typically between 2 and 4 a.m., to avoid police scrutiny and reach their destinations before 7 a.m.
It is expected that prominent parties will invest an average of approximately Rs 15 crore in each Assembly segment, while candidates are also planning to allocate an additional Rs 5 crore to Rs 10 crore to secure victory in their segments at any cost.