Identify end gainers of seized cash, gold and drugs: Election Commission

The special investigations team (SIT) probing black money has directed the Election Commission and law enforcement agencies to zero in on the “ultimate beneficiaries” of illicit cash, gold and drugs seized during elections.

At a meeting held in New Delhi on November 15, the SIT asked the agencies to go after the “big fish” and not just arrest “truck drivers or couriers”, people with knowledge of the matter said.

The Election Commission has so far captured cash, gold, diamonds and drugs estimated to be worth about Rs 172 crore from the five states that are currently in an election mode. The biggest seizures have been reported from Madhya Pradesh, Telangana and Rajasthan, of worth about Rs 50 crore, Rs 78 crore and Rs 28 crore, respectively.


“We have been surprised by the seizure of pink diamonds, worth crores — it is a new phenomenon,” said one of the people.

Separately, the SIT has asked the Central Board of Direct Taxes to explore recovering half the disputed tax demand if an assessee decides to file an appeal against tax assessment in a HC.

The assessee, citing unavoidable or extreme circumstances, can file a writ petition in the high court against the departmental tax assessment. As of now, no tax or fee is required to be deposited for filing petitions in the HC.

However, to seek an interim stay from the commissioner of income tax (appeals), a quasi-judicial authority, the CBDT guidelines mandate the assessee to deposit 20% of the tax demand.