New Delhi: Income tax officials seized Rs 42 crore in cash from the residence of the son of a Bengaluru civil contractor who has links to the ruling Congress party.
The contractor in question, R. Ambikapathy, was vocal in accusing the previous Bharatiya Janata Party (BJP) government of extorting 40% commission from civil contractors –which figured prominently in the run-up to the Karnataka elections that unseated the BJP from power in the state. Ambikapathy is the vice-president of Bruhat Bengaluru Mahanagara Palike (BBMP) Contractors’ Association.
IT officials have been carrying out a series of raids over the last two days at properties linked to contractors who carry out civil construction works for BBMP.
According to the BJP, the seized cash is part of the commission that is to be paid to the Congress government in the state by contractors in exchange for authorities releasing Rs 650 crore for the works done by contractors in the previous BJP government.
The BJP, along with the ruling Bharat Rashtra Samithi (BRS) in neighbouring state of Telangana, has alleged that the seized cash was to fund the Congress election campaign in Telangana. Telangana is going to polls on November 30, and Congress is a serious contender for power against chief minister K. Chandrashekar Rao’s party, BRS.
According to the Indian Express, BJP MLC and spokesperson N. Ravikumar said, “The Rs 42 crore found with a contractor is the commission for the release of Rs 650 crore of payments to contractors. Karnataka chief minister Siddaramaiah and deputy CM D.K. Shivakumar should take moral responsibility and quit. There should be a detailed probe into the funds.”
Similarly, former chief minister and Janata Dal (Secular) leader H.D. Kumaraswamy echoed the views of the BJP. “The cash was found following the release of Rs 650 crore of payments to a few contractors. It seems to suggest that the money is illegal. Who are the people behind this and what is the percentage of kickbacks?” Kumaraswamy said on social media Friday. Kumaraswamy’s party is in alliance with the BJP.
“The information is that the carton boxes with the money were to be transported to Telangana,” he also alleged.
Ambikapathy from whom the money was seized is the husband of Ashwathamma, who is currently the Congress councillor from the RT Nagar region in the city. Ashwathamma also happens to be the sister of Akhanda Srinivasamurthy, who was denied a Congress ticket in the recent Assembly polls after he had a bad falling out with D. K. Shivakumar, who is now the deputy chief minister of the state.
In August this year, Shivakumar had threatened to withhold the payments to contractors for works done during the previous BJP government. He had said his government would not pay anyone who would present bills without showing proof of actual work on the ground. According to contractors, payments to the tune of Rs 710 crore from the previous BJP government are pending to be released.
Some of the contractors had also sought the intervention of the governor while accusing Shivakaumr of demanding bribes for the release of payments. They had said he must swear if he is not demanding bribes. However, the contractors later withdrew their allegations.
The BJP, however, has been accusing Shivakumar of “DKS tax” for the release of payments to contractors who had carried out works under the BJP government.
Responding to IT raids, Shivakumar said they are “politically motivated”. “The IT department would not take any action without a political motive. We know everything that is happening. It is being done in states where the Opposition is ruling; it is being done in Chhattisgarh,” he added.
When asked specifically about the link between the release of payments and the unaccounted money seized, he said, “I do not know. I do not need to respond to people who speak on the streets,” he said about the BJP allegations.
