I-T raids: ₹40 crore seized from contractor’s house in Bengaluru

The raids at the residence of contractor Santosh Krishnappa in Bengaluru’s Rajajinagar started on Saturday morning and concluded on Sunday

Income Tax (I-T) department officials continued their search and seizure operations at the properties of several contractors in the state, officials familiar with the matter said, adding around ₹40 crore have been recovered from a contractor’s residence in Bengaluru.

Around ₹40 crore have been recovered from a contractor’s residence in Bengaluru in income tax department raids. (PTI)

Over 15 officers conducted raids at the residence of contractor Santosh Krishnappa in Bengaluru’s Rajajinagar, starting from 6am on Saturday, officials said. The raids were concluded ion Sunday.

During the interrogation, Krishnappa alleged that the money belonged to former MLC BEML Kantharaju. However, Kantharaju has refuted the claims and said he has nothing to do with the money found during the I-T raid.

“I’ve been at my house in Nelamangala because of the festival. Builder Santosh is not related to me. I don’t have any siblings. So, there is no possibility of interrogating my brothers. I have not received any notice regarding the Income Tax raid either,” Kantharaju said.

In the wake of the five assembly elections and the Lok Sabha elections scheduled next year, the income tax department officials have been conducting several raids in many parts of the state, including Bengaluru, for the last ten days.

Last week, the I-T officials had recovered about ₹42 crore from a flat associated with R Ambikapathy, president of BBMP Contractors’ Association and vice-president of Karnataka State Contractors’ Association. The I-T sleuths raided Ambikapathy’s brother Pradeep’s residence in Atmananda Colony of Sultanpalya in the city, and found 23 boxes containing ₹500 denomination notes.

The raids were also conducted at Ambikapathy’s wife and former corporator of ward number 95, Ashwathamma’s properties in Bengaluru. The couple are reportedly relatives of R Akhanda Srinivasa Murthy, former MLA of Pulikeshinagar in Bengaluru.

Ambikapathy has been a prominent figure in the 40% commission campaign led by the Karnataka Contractors’ Association. The contractors claimed that 40% commission had to be paid for works done, leading to a huge political row. The Karnataka Congress had launched ‘PayCM’ campaign in the state before the assembly polls.

Meanwhile, chief minister Siddaramaiah on Sunday said that the contractor does not belong to any party. “The contractor said that he did not ask for it and we did not give it either,” he said.

Senior Bharatiya Janata Party (BJP) leaders in the state demanded a CBI probe into the recovery of cash by the I-T department officials, adding that money found was part of Congress’ collection to fund elections in different state.

Former minister CT Ravi held a press conference at the BJP office in Bengaluru on Sunday and said, “Both Ambikapathy and Santosh Krishnappa are benami number 1 and number 2 (one who does illegal activities anonymously) of this state. Both CM and deputy CM have kept many benamis in all districts for their illegal activities. If the CBI investigates, all the truth will come out.”

“Congress has made Karnataka as the ATM for the five state elections. For the five state elections, the high command has given ₹1,000 crore to number one and ₹2,000 crore to number two,” Ravi added.

Former chief minister Basavaraj Bommai on Saturday said that the state government and the contractors are jointly looting the state and the contractor’s association has become the government’s commission collection centre. “The recovery of money has to be probed by ED and CBI,” Bommai said.

Former Minister R Ashoka said corruption is rampant in the state and questioned why the money was not released to contractors before the elections were declared in the five states. “Why was money not released to contractors before the elections were declared in the five states?”