THE Income Tax Department has recovered more than Rs 42 crore in cash, stashed in a residential premise here, on Friday as part of its tax evasion searches against some Karnataka-based contractors and persons linked to them, official sources said. The searches triggered a political slugfest between Karnataka’s ruling Congress and the BJP ahead of Assembly polls in five States. Official sources said the searches are underway and the department has deployed cash counting machines and additional manpower to ascertain the final amount of cash recoveries. Officials said a large part of the cash was seized from a residential premise in the capital city of Karnataka that had no occupant and the money was kept stashed in cardboard boxes.

 

The searches are continuing and till now more than Rs 42 crore in cash has been recovered. The department is also investigating if this money, which appeared undeclared, was supposed to be pumped into neighbouring Telangana where assembly polls will be held next month, sources said. BJP leader and former Deputy Chief Minister C N Ashwath Narayan targeted the Congress Government in the State over the recovery, alleging that the money was collected from contractors as commission to fund elections. “This proves the ‘ATM Government’ allegations (against Congress Govt) with evidence... This is the small size consignment of the collection by the ‘ATM Government’ that has been caught. Many such things are there. This is collected money. This is just a sample,” he said.