Karnataka: IT Seizes Rs 42 Crores From Residence Of Ambikapathy, A BBMP Contractor Close To Congress Who Led '40% Commission Sarkara' Campaign

The Income Tax (IT) officials on Friday (Oct 13) raided multiple properties linked to Ambikapathy, an influential BBMP contractor with close links to the ruling Congress party and reportedly seized Rs 42 crores at one of his residences.

IT sleuths have been carrying out a series of raids over the last two days at properties linked to contractors who carry out civil construction works for BBMP.

Ambikapathy, an office-bearer of multiple contractors' associations in Karnataka, was at the forefront of the "40% commission" campaign against the previous BJP regime.

Ambikapathi is the husband of a former Congress councillor from the R T Nagar, Ashwathamma. Ashwathamma is the sister of former Congress MLA from Pulikeshi Nagar in Bengaluru Akhanda Srinivasamurthy.

Ambikapathy also served as the vice president of the Karnataka State Contractors Association headed by D. Kempanna, another prominent contractor known to have close links to the Congress party. Kempanna thrust himself into the limelight by writing a letter to the Prime Minister saying that the state government ministers have demanded a 40 per cent commission in contractual works.

The opposition BJP and JDS have alleged that the cash seized during the raids is a part of the kickbacks collected by the Congress party for the release of Rs 650 crore as payments to civil contractors for works done for the BBMP during the previous BJP regime.

"The Rs 42 crore found with a contractor is the commission for the release of Rs 650 crore of payments to contractors. Karnataka Chief Minister Siddaramaiah and Deputy CM D K Shivakumar should take moral responsibility and quit. There should be a detailed probe into the funds." BJP MLC and spokesperson N Ravikumar alleged.

Former Chief Minister and JD(S) leader HD Kumaraswamy suggested that the cash seized at Ambikapathy's residence may be connected to funding requirements for Congress in upcoming state elections, especially in Telangana. He also referenced the release of funds by BBMP to contractors and the subsequent IT raid.

"The cash was found following the release of Rs 650 crore of payments to a few contractors. It seems to suggest that the money is illegal. Who are the people behind this and what is the percentage of kickbacks?" Kumaraswamy alleged.

"The information is that the carton boxes with the money were to be transported to Telangana," he further alleged.

Deputy chief minister DK Shivakumar refuted allegations and claimed that IT raids were 'politically motivated'.