The income tax (IT) department conducted raids and search operations at several places in Bengaluru on Thursday night, and recovered about ₹42 crore from a flat associated with R Ambikapathy, president of BBMP Contractors’ Association and vice-president of Karnataka State Contractors’ Association, officials privy to the developments said.
According to the officials, 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 I-T sleuths have found documents on bank accounts and lockers as well, they said.
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.
Ambikapathy was also one of the contractors who had been arrested in connection with a criminal defamation case filed against them by former minister Munirathna over the commission allegations, although they were subsequently released on bail.
{{/usCountry}}Ambikapathy was also one of the contractors who had been arrested in connection with a criminal defamation case filed against them by former minister Munirathna over the commission allegations, although they were subsequently released on bail.
{{/usCountry}}Former chief minister and JD(S) leader HD Kumaraswamy on Friday questioned the Congress government in the state whether the money was collected for the upcoming elections. “Who owns the money found in the contractor’s house during the I-T raid? On whose shoulders is this money of sin collected? These questions need answers,” he said on X.
“Soon after ₹650 crore was released by BBMP to select contractors, ₹42 crore was found during IT raid. So, it is true that this collection being done for elections. What percentage is that? Who are the main people hiding behind this?...It is reported that the 23 boxes were going to the neighbouring Telangana. It is true that this money was collected for elections,” he further said.
Meanwhile, former minister and senior BJP leader KS Eshwarappa alleged that the state Congress was transporting the money to the All India Congress Committee (AICC). “Income Tax officers have found crores of rupees at Karnataka State Contractors’ Association vice president’s house. During the assembly elections, Prime Minister Modi and Home Minister Amit Shah had clearly said that if Congress is voted to power, the government would be used as an ATM for the AICC.”
“The seizures made by the IT officials are an example of that. A probe must be conducted to find out what is the role of CM Siddaramaiah, DK Shivakumar and Kempanna in this,” Eshwarappa added.
Meanwhile, Karnataka State Contractors’ Association president D Kempanna alleged that the state government was clearing bill of only “select contractors”, and demanded that the government clear at least 50% of pending bills within 30 days, warning of a statewide protest.
“We have met the chief minister four times requesting him to release our funds, but it is not being done efficiently. The chief minister had said that the bills would be released based on seniority, but only a few select contractors are getting the funds. If we ask the officials, they claim they are following the orders,” Kempanna alleged.
However, Kempanna denied any commission allegations against the Congress government in the state.
Responding to the IT raids on Ambikapathy in Bengaluru, Kempanna said the former had not taken up any contract works in the last eight years due to health issues, adding that he had several other businesses like agriculture and stone crushing. “But the law will take its own course.”