In a major embarrassment to the ruling Congress Government in Karnataka, two officials were suspended on Friday in connection with the raid conducted by the Income Tax sleuths who seized unaccounted money and property worth over Rs 152 crore.
The ongoing Winter Session of the House at Belagavi witnessed a ruckus as both BJP and JD(S) demanded the suspension of two engineers who were raided by the Income Tax sleuths. Bowing to the Opposition demand in the Karnataka legislative Council, Home Minister G Parameshwara announced the that two engineers TN Chikkarayappa and SC Jayachandra who had come on the radar of tax sleuths have been suspended.
Chikkarayappa is Managing Director of Cauvery Neeravari Nigama (irrigation corporation) and Jayachandra, Chief Project Officer of the State Highway Development Project. They are said to be very close with some of the powerful Ministers in the State.
The Home Minister said on the floor that the Government would decide on the next step after a probe and getting information from the IT Department, adding, none would be protected and the guilty would be punished according to law.
He also said it was not proper to link one official as being close to Chief Minister Siddaramaiah and the other to Public Works Minister HC Mahadevappa, pointing out that they had worked for previous Governments also.
Over 50 I-T sleuths and police personnel had conducted the operations and searched premises in Bengaluru, Chennai and Erode (Tamil Nadu) with the Department saying the seizure of cash in new currency was over Rs 5 crore.
IT officials on Friday said the cash found, after searches were launched on Thursday in the premises of two engineers and two contractors, has risen to Rs 5.7 crore and these notes are in the denomination of the new currency of Rs 2,000.
“Total admission of unaccounted income by the group stands at Rs 152 crore. Investigations are on,” they said in New Delhi.
Parameshwara said it was puzzling as to “from where Rs 4.7 crore came (in cash in new currency). It must have come from the bank only. How did they get it ... from which bankIJ”
He said the IT department should now find out as to how “so much money reached them” and take action after completing the relevant process.
As the Council met in the morning, Opposition BJP and JD(S) members rushed to the well of the House alleging that Government was protecting corrupt officers by not suspending them forthwith.
Opposition BJP leader KS Eshwarappa raised the issue and said the State Government had not taken any action against the two officials though the matter had come to the fore and demanded their immediate suspension pending inquiry. JDS’ Basavaraj Horatti also insisted on their suspension.
Parameshwara later told the House that he had discussed the matter with the Chief Minister and Chief Secretary and announced the suspension.
“Income-tax Department of Karnataka & Goa conducted a search in the cases of two State Government Engineers and two contractors on 30-11-2016. In these searches, cash in excess of Rs 6 Crores, bullion of 7 kg approximately and jewellery about 9 KG were found from the residences (Gold and jewellery is valued at approximately Rs 5 Crores). Out of the cash found, Rs 5.7 Crores is in new currency of Rs 2000 notes. About Rs 90 lakhs has been found in the old demonetised currency” said in a press release issued by the income tax department.
According to the press release in addition, several property documents were also found, and seized.” It was also noticed that these persons are in possession of high end luxury cars. Total admission of unaccounted income in the group stands at Rs 152 Crores. Investigations are continuing” adds the press release.