I-T Dept raids 11 contractors in Mysuru, Bengaluru

Bengaluru: The Directorate of Income Tax (Investigation), Karnataka & Goa on Tuesday conducted search and seizure operations on a number of government contractors in poll-bound Karnataka. According to sources, the tax raids were conducted against 11 contractors in Mysuru and one in Bengaluru.

Under the radar are contractors, who participate in government tenders, especially in the public works department. Recently, the tax officials had found that a government contractor had made payments to another person, who in turn had withdrawn Rs 55 lakh from the amount that was transferred to him. The unaccounted money was seized and the contractor also admitted to concealment of Rs 16 crore.

The IT Department had asked the chief secretary to furnish details of payments made to contactors in the last quarter of the just completed financial year in Karnataka to draw a comparison with previous years to identify any abnormal cases or payments that may have been made on the eve of the forthcoming Assembly elections. “The data submitted by the government is being correlated with linked bank transactions and cash withdrawals,” said an official source.

In view of the single-phase poll on May 12, the DGIT has stepped up its surveillance and monitoring activities to ensure a free and fair election.