At Rs 31.5 crore, I-T cash seizures see 500% increase this election season

In what enforcement agencies call the largest poll-related haul in Karnataka, the value of cash seized by the income tax (I-T) department has witnessed an increase of over 500% since the previous assembly elections. Raids were conducted in at least 27 places, sources in the I-T department and Election Commission of India (ECI) said, without confirming the exact number of searches. Those raided include one candidate from a major party, a few independent candidates, about 11 government contractors and a resort owner.

According to the department, its investigation wing has seized Rs 31.5 crore since poll dates were announced in March. The corresponding figure for the 2013 assembly elections was Rs 5 crore. The department has seized jewellery worth Rs 5.8 crore this time, a considerable increase from 2013 when the figure stood at Rs 3.4 crore. ECI, which has compiled figures up to last week, told TOI cash worth Rs 19.7 crore was seized. However, BR Balakrishnan, director general (investigation), Karnataka and Goa region of the I-T department, said: “The numbers vary because ECI is yet to get the updated data from us. The exact figure is Rs 31.5 crore.”

ECI and the I-T department said for the first time, teams with statutory powers and sufficient resources — manpower and vehicles — were deployed in each district, which has ensured large seizures of cash and jewellery. ‘Tip of the iceberg’ Political observers, however, argue that this is only the tip of the iceberg and that for every rupee seized, about Rs 90 gets past the system. This means that the amount of money actually used for polls this time is also unprecedented.

“Cash seizures during these elections are unmatched in Karnataka’s history. While this shows the political establishment in bad light, it also reflects authorities’ failure to check availability of cash and black money. The I-T department should see this as a wake up call ahead of the general elections,” opined Vivek Mallya, a chartered accountant. On whether such huge seizures have dented Karnataka’s image, Chief Electoral Officer (CEO) Sanjiv Kumar said: “No, this is only a reflection of how effective our enforcement has been.” Balakrishna added: “You must know that the seized cash was meant for distribution.”