Pandora necklace

Details of Karnataka computer raids unlock pandora’s box, wealth worth 750 crore rupees found undisclosed


Representation image | Photo credit: iStock images

Highlights

  • Computer detectives unearth 750 crore in undisclosed wealth
  • Bogus purchases, inflation of labor costs and other tactics used

Bangalore: The Income Tax Department conducted research in 47 locations in Bengaluru on October 7, the highlight of this raid so far was the link that has emerged with former Karnataka CM BS Yeddiyurappa. Searches were carried out at the residence and offices of a man named Umesh who was one of BSY’s PAs.

BSY who reacted at the time accepted that Umesh was working for him in his office and said he would wait until the investigation was completed before he could comment.

Now the revenue department has revealed some startling details related to this research. The Income Tax Department shared the following details

Computer detectives searched for and seized prosecution evidence from three main contractors based in Bengaluru who were engaged in the execution of irrigation and highway projects. The searches were carried out in 47 premises in 4 states.

Unaccounted for cash of Rs. 4.69 crores; jewelry and unrecorded bullion worth Rs. 8.67 crore; and silver items worth Rs. 29.83 lakh were seized.

Rs. 750 crore of undisclosed income was detected from this research. The parties who were wanted agreed that Rs. 487 crore was their undisclosed income.

The tax department also revealed that these three groups use various means to earn money and hide their wealth. They resorted to fake purchases; inflation of labor costs; accounting for incidental subcontracting costs, etc.

One of them allegedly admitted to having engaged in an inflation of labor costs amounting to Rs. 382 crores.

With these massive discoveries, the involvement of government contracts, and a political connection to one of the groups involved, it remains to be seen what kinds of ramifications this will have in Karnataka state.