Income Tax Raids in Bengaluru Uncover ₹42 Crore Linked to Contractors' Association President

Income Tax Raids in Bengaluru Uncover ₹42 Crore Linked to Contractors' Association President
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The Income Tax (IT) department conducted raids and search operations in Bengaluru, resulting in the recovery of approximately ₹42 crore from a flat linked to R Ambikapathy, the president of the BBMP Contractors’ Association and vice-president of the Karnataka State Contractors’ Association. During these operations, IT officials discovered 23 boxes containing ₹500 denomination notes at Ambikapathy's brother Pradeep’s residence in Sultanpalya. Documents related to bank accounts and lockers were also seized.

Raids were extended to Ambikapathy's wife, Ashwathamma, a former corporator, and the couple reportedly has connections to R Akhanda Srinivasa Murthy, the former MLA of Pulikeshinagar in Bengaluru.

Ambikapathy was a notable figure in the Karnataka Contractors’ Association's 40% commission campaign, which stirred controversy due to allegations of commissions paid for public works. He was also previously arrested in a criminal defamation case connected to these allegations.

Former Chief Minister and JD(S) leader HD Kumaraswamy raised questions about the origins and purposes of the seized money, suggesting it might be connected to upcoming elections. He also referenced the release of funds by BBMP to contractors and the subsequent IT raid.

Senior BJP leader KS Eshwarappa alleged that the state Congress was transporting the money to the All India Congress Committee (AICC), echoing concerns of political misuse of funds.

Karnataka State Contractors’ Association president D Kempanna demanded the prompt clearance of pending bills for contractors and voiced dissatisfaction with the government's handling of funds. However, he denied any commission allegations against the Congress government.

In response to the IT raids, Kempanna noted that Ambikapathy had not taken on contract works in recent years due to health issues and was involved in other businesses like agriculture and stone crushing. The legal process would proceed accordingly.

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