War of words erupts between Congress and BJP after IT raids in Karnataka unearth over ₹50 crore cash

The state BJP has decided to stage demonstrations in various districts and taluk headquarters, demanding the resignation of Siddaramaiah and his deputy DK Shivakumar, on 16 and 17 October.

Accusing the Congress of running an “ATM government” in the state to fund the elections in five poll-bound states, Kateel alleged that the seized cash belonged to the Congress.

“Tomorrow and the day after tomorrow, the BJP will stage a massive demonstration in all the district and taluk headquarters,” Kateel told reporters after a meeting with the district and taluk unit office-bearers.

He alleged that there is a looting government in the state, which is collecting money.

Kateel, who is an MP from the Dakshina Kannada constituency, claimed that just a few days ago ₹600 crore was released to the contractors and, then, over ₹45 crore was seized from a contractor’s house.

“It is very clear that this money is linked to the Congress. This is Congress’s money only. I demand that the chief minister and the deputy chief minister resign, owning moral responsibility,” Kateel said.

He further charged that the “ATM government” in Karnataka was looting money to fund the election campaigns in five poll-bound states.

Union Coal and Mines Minister Pralhad Joshi alleged that Congress has set a target of collecting ₹1,000 crore from Karnataka alone.

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Congress refutes

“When we said that there is an ATM government in the state, the Congress demanded proof. Today, Chief Minister Siddaramaiah and Deputy Chief Minister DK Shivakumar have given us evidence,” the BJP state chief charged.

Dismissing the allegations, Siddaramaiah said, “This is a baseless allegation. Contractors do not belong to any political party. Neither we ask them (contractors), nor they give us,” he told reporters in Mysuru.

Income Tax sleuths raided more than 45 places in Karnataka, mostly in Bengaluru, and seized over ₹50 crore from various people, including ₹42 crore from a contractor and his son.

The raids began on Thursday and are still going on, an I-T department official said.

Related: IT search finds ₹42 cr in contractor’s Bengaluru house

I-T raids

The cash was kept in 23 cartons under a cot at the residence of a relative of the contractor and a former corporator at Atmananda Colony in RT Nagar.

Police sources told South First earlier that the flat belonged to former corporator Ashwathamma and her husband R Ambikapathy.

The latter is the president of the BBMP Contractors’ Association as well as the vice-president of the Karnataka Contractors’ Association.

Ambikapathy had earlier accused the previous BJP government of demanding a 40 percent commission for clearing bills. Ashwathamma is the elder sister of former Congress MLA R Akhanda Srinivas Murthy.

Also read: I-T searches premises of industrialists, chit fund, e-commerce firms

Funding for Assembly elections

Sources privy to the developments told South First that the I-T officials had information that several big builders and businessmen, contractors, and jewellers in Karnataka, especially from Bengaluru, were mobilising funds for the upcoming Assembly elections in five states.

A lion’s share of the funds was reportedly for funding the poll campaign in Rajasthan.

The seized ₹42 crore was reportedly meant for Telangana, Finance Minister of Telangana and BRS leader T Harish Rao said on Friday.

Addressing a media conference in Hyderabad, Rao claimed that the money was collected from builders, gold businesses, and contractors as “Telangana tax”. It was part of ₹1,500 crore meant to fuel the Congress’s campaign in Telangana, he alleged.

(With PTI inputs)