Income Tax Department seized Cash ahead of Assembly Elections in Five States

The Income Tax Agency has recovered more unaccounted cash in the run-up to Assembly elections in five states than in previous elections in those states, said CBDT chairman Nitin Gupta on November 15.

Mr. Gupta stated that in the run-up to both the State Assembly and Lok Sabha elections, law enforcement authorities, including the IT department, enhanced monitoring and received information regarding unexplained cash and jewels via toll-free numbers set up for that purpose.

“The States where we are right now in elections we have seized more cash than what was seized in the corresponding time in the State Assembly elections or Lok Sabha 2019,” Mr. Gupta was quoted as saying by the media.

He stated that pre-election monitoring of unaccounted for funds and surveillance is extensive, and that the entire operation is coordinated at the level of the Election Commission and state election authorities.

According to sources, there has been a threefold increase in the total recovery of illegal currency, spirits, drugs, gold, silver and other items in poll-bound Rajasthan this year. Seizures worth Rs.322 crore in 2021 and Rs.347 crore in 2022 have grown to Rs.1,021 crore as of October 2023.

In November, elections will be held in Chhattisgarh, Telangana, Rajasthan, Madhya Pradesh, and Mizoram.

In July, the Central Board of Indirect Taxes and Customs (CBIC) issued a Standard Operating Procedure (SoP) for tax officers to follow in order to implement the Election Commission’s directives on the use of freebies, illicit cash, spirits and drugs to entice voters, and to share information with other enforcement agencies.

According to the SoP, tax officers were instructed to supervise the distribution of coupon-based or free fuel or cash in order to entice prospective voters.

GST and Customs personnel were also directed to establish “flying squads and static surveillance teams” for the effective implementation of vehicle road and transit checks, as well as warehouse verification, in order to combat unlawful and forbidden operations.