I-T finds Rs 27 lakh from Vellore realtor's estate

CHENNAI: The income tax department on Saturday seized ₹27 lakh from a real estate businessman’s premises in Vellore .


The I-T officials, along with the election department’s flying and static squads, started the searches at the residence of Elumalai at Vasur near Vellore on Saturday evening as part of the effort to prevent cash distribution to voters in Vellore Lok Sabha constituency, where election is slated for August 5.

The I-T department drafted officials from different parts of the state to carry out the searches.

“The searches are going on for more than 5 hours. We received information from flying squads that Elumalai was in possession of huge amount of cash. The model code gives us powers to search any premises including houses if we have credible information about stocking of cash and valuables,” said a senior Income Tax official.

Money was found buried in the backyard of Elumalai’s residence, the official said.

“Elumalai deals in real estate and is said to be close to leaders of a party which is contesting in the Vellore election. He was not able to show source of the seized money. Further questioning is on to ascertain whether the cash was meant for distribution to voters,” said the official.

This is the first Income Tax search after the Vellore election was announced earlier this month.

In April this year, the Election Commission, based on a report from the Income Tax department, rescinded Vellore election just days before the scheduled date of polling following seizure of huge amount of cash, meant for distribution to voters.

More than ₹10 lakh unaccounted money was seized from DMK candidate Kathir Anand’s house in Katpadi on March 29. An FIR has been registered in this regard. Anand is DMK treasurer Duraimurugan’s son.

Later, I-T officials searched the residence of a DMK functionary Damodaran and seized Rs 11.48 crore. “But another party functionary, Poonjolay Srinivasan, called the income tax department and accepted that the cash seized belonged to him and it was to be used for distributing to the voters,” the FIR said quoting the I-T report. Following the raids, DMK had accused I-T of indulging in witch hunting at the hustings.

Following filing of the FIR, the Income Tax investigation wing sent a detailed report to the EC. Vellore was the only LS constituency in the country where election was rescinded on charges of voter bribing.