Bangalore stash case set to go to CBI

TT, Bangalore, Dec. 3: The income tax department that found Rs 5.7 crore in new 2,000-rupee notes in raids on the premises of two Karnataka government engineers and two contractors is likely to hand over the case to the CBI.

T.N. Chikkarayappa, the managing director of Cauvery Neeravari Nigam - a government body for Cauvery water management - and S.C Jayachandra, the chief project officer of Karnataka State High Development Project, and their immediate family members were interrogated till late last night.

Likewise, Sibi Chakravarthy and Ramalingam, the two contractors believed to be their close associates, were also questioned.

"In such cases the income tax department hands over further investigation to the CBI, which then prepares the chargesheet and begins prosecution of the alleged," a source said. "This case can be handed over to the local police but usually the income tax department brings in the CBI."

Senior lawyer G.R. Mohan corroborated this. He said that even the Enforcement Directorate could get into action since there was prima facie money laundering involved in stashing so much unaccounted wealth. "The huge amount of wealth beyond their earnings indicates money laundering, which is the domain of the ED," he said.

The source said the investigations would now focus on the property documents seized from them to check if they were illegally holding ( benami) properties for anyone else.

The break-up of the wealth seized from Thursday's pre-dawn raids would be listed in the investigation report to be submitted to the income tax commissioner for Karnataka.#It was also revealed during questioning that Jayachandra's family operated a shell company, of which his wife, Bharathi, and son Trijesh were directors.

Shakya Infrastructure Private Limited was incorporated in Bangalore on April 20, 2011. Its listed business is building construction. It was formed with a paid up capital of Rs 1 lakh.

The taxmen who raided the premises of the engineers and the contractors had recovered cash in excess of Rs 6 crore, seven kilos of bullion and nine kilos of gold jewellery, together valued at about Rs 5 crore. Around Rs 90 lakh of the cash was in demonetised currency. The tax department said the "total admission of unaccounted income in the group stands at Rs 152 crore".

Two luxury cars, a Porsche and Lamborghini, and two superbikes, an MV Agusta and Ducati 749, were also recovered from Jayachandra's residence. It is now confirmed that the vehicles belonged to Trijesh.

A city-based RTI activist today filed a private complaint with the state Anti-Corruption Bureau seeking suo motu investigation on how the government officers managed to amass so much wealth.

"This is a corruption case of massive proportions. So it's the duty of the ACB to take cognizance of the ongoing investigations by the income tax authorities and the suspension of the two officials to file an FIR and start criminal investigations," the complainant, Sai Datta, told this newspaper.

While the tax authorities have not named the four, the government had yesterday suspended the two officials.