IT raids unearth Rs 281 crore 'cash collection' scam in MP: Tax Officials

The raids conducted by the Income Tax officials in Madhya Pradesh Chief Minister Kamal Nath’s close aide and other leaders over the last two days have exposed ‘widespread’, ‘organised’ scam of unaccounted cash of about Rs 281 crore. The team raided several properties that belong to businessmen, politicians and people related to other public services.

"A part of the cash was also transferred to the headquarter of a major political party in Delhi, including about Rs 20 crore which was moved through hawala recently to the headquarter of the political party from the residence of a senior functionary at Delhi's Tughlak Road," news agency ANI said quoting its sources.

The development comes after the IT officials raid against close aides of CM Kamal Nath and others continued on day two.

According to IT- Department statement, it has seized included tiger skins, a few firearms, unaccounted cash amounting to Rs. 14.6 crore, 252 bottles of liquor. "Searches in Delhi in a group of a close relative of the senior functionary led to the seizure of incriminating evidence, including cash book recording unaccounted transactions of Rs 230 crore," they said.

The Election Commission had on Sunday had instructed investigation and enforcement agencies to inform it about any such exercise before undertaking it and to ensure that their pre-poll raids remain politically neutral.

"The Election Commission strongly advises that all enforcement actions during the election period, even when conducted ruthlessly with a view to curb the blatant electoral malpractice (of using money power to influence voter behaviour), be absolutely neutral, impartial and non-discriminatory. Further, in case of suspected use of such illicit money for electoral purposes, the Chief Electoral Officer should be kept suitably informed while the Model Code of Conduct is in force," a letter issued by the EC to investigation agencies read.