Karnataka: Income Tax Dept seizes over Rs 50 crore after raids on contractors, others

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Income Tax authorities in Karnataka have uncovered a sum exceeding Rs 50 crore in cash during extensive raids on multiple individuals, including a contractor, his son, a gymnasium instructor, and an architect, told a high-ranking official within the department to PTI.

The series of raids commenced on Thursday, encompassing 25 locations affiliated with two significant infrastructure companies. By Saturday evening, the operation had expanded to 45 locations, the official informed PTI, speaking on the condition of anonymity.

The Income Tax Department, charging those involved with tax evasion, executed the searches at various office premises, including those in Sahakarnagar and Sanjaynagar, leading to the confiscation of numerous documents.

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In pursuit of leads from these two firms, Income Tax officials further combed through the residences and other premises belonging to contractors and several other individuals, stated the report.

"Up until Friday, a total of 45 sites had undergone searches, with ten additional locations raided and searched on Saturday. On the third day of the operation, Saturday, the homes of an architect and a gymnasium owner were raided, resulting in the seizure of £880,000 in cash. With this, the cumulative cash seized has now exceeded Rs 50 crore," the official disclosed. The raids remain ongoing, the official added.

PTI sources within the BJP revealed that the contractor whose residence was subjected to a raid was a prominent figure linked to allegations of a 40% commission involving the previous BJP government. The BJP fiercely criticized the Congress government, asserting that builders were being subjected to extortion.

CT Ravi, a BJP leader and former minister, alleged instances where a prominent infrastructure company, also engaged in housing construction, was denied water connections due to its refusal to pay bribes.

As per his claims, builders were being coerced into making payments at the rate of Rs 100 per square foot. Ravi deemed this phenomenon unprecedented, asserting, "This had never happened before..."

Notice to the son of a contractor

The I-T department has reportedly issued a notice to the son of the contractor and a former corporator after the officials found Rs 20 crore in cash which was allegedly hidden under a bed. They had conducted raids at over 50 places, including properties of ex-corporator of Ward 95, and her husband.