Karnataka: Raids on Congress MLA unearth Rs 120 crore concealed income

Bengaluru: The Income Tax raid on the residences and properties belonging to Hoskote MLA M.T.B. Nagaraj, a close associate of Chief Minister Siddaramaiah, has unearthed concealed property and income worth over Rs 120 crore. The raids were conducted on Thursday.

Department sources said the search has resulted in admission of additional income by the MLA and his family members of concealed income exceeding Rs 120 crore.

"The additional income admitted is in the form of unaccounted property investment, construction of commercial property, hospital, residence, house and withdrawal of bogus unsecured loan for the amount which is actually revenue receipt, evasion of taxes on properties registered in Joint Development Agreement, unexplained cash and cash deposits, suppression of receipts in convention hall and paying guest accommodations run by him and his family members," an official said.

In addition, the taxmen have also seized unexplained cash of Rs 1.10 crores during the search. "Further, an amount exceeding Rs 70 crore of payments received by various independent landlords were also identified, where no capital gains are paid. A claim of exempt income for several years exceeding Rs 125 crore related to running SEZ has been found to be false. Meanwhile, 3,500 documents related to land and property were found evidencing land ownership of 560 acres, and that is being verified. Apart from cash, 10 kg gold was also found during the search and its source is under investigation," the official added.