Bengaluru: The Directorate of Income Tax (Investigation), Karnataka & Goa, conducted search and seizure operations between Tuesday and Thursday on a number of contractors in poll-bound Karnataka, and seized Rs. 10.62 crores and jewelry worth Rs 1.33 crores.
Reports of shortage of currency notes in certain parts of the country have been making the rounds. Recent income tax searches in Karnataka appear to indicate that one reason could be hoarding of cash by these contractors in Karnataka.
Intelligence gathered by the Investigation Wing in Karnataka indicated that several contractors were in possession of huge stocks of cash in the higher denominations of Rs 500 and Rs 2000. Searches were carried out on several such contractors between the 24th and 26th of April 18 which resulted in a seizure of Rs 6.76 crore from four such contractors in the Mysore area. The entire amount seized was in higher denomination notes.
The cash found and seized was not reflected in the books of account maintained by the contractors. Hoarding of huge stocks cash by these people at the time when cash shortages were reported in some areas in the state has raised troubling questions. The bulk of the seizure was made from lockers in benami names....