The Income Tax department has accused Karnataka minister DK Shivakumar of allegedly operating a 'hawala network' to transfer money to the All India Congress Committee (AICC), reported CNN-News18. The I-T notice alleges that Shivakumar, the Water Resources and Medical Education minister, gave Rs 3 crore to the AICC in Delhi on 5 January 2017, through the hawala network.
Shivakumar, however, said that he was not aware of any notice and denied having given any amount to the Congress head office. "The law of the land will take its course. The allegations being levelled are false," he said.
"He has the right to legal recourse. The question of his resignation does not arise," said Karnataka chief minister HD Kumaraswamy, asserting that a resignation would not be needed from Shivakumar.
The I-T department has filed a complaint before the Special Court for Economic Offences in Bengaluru, following the notice in which Shivakumar was named as an accused, ANI reported.
It is further alleged that Shivakumar used this method as a way of avoiding tax, reported CNN-News18.
Shivakumar set up a vast network of people and places across Delhi and Bengaluru to transport unaccounted cash, reported India Today. The money has been seized from four premises in Delhi.
Karnataka Congress Secretary V Mulgund has been named in the notice as the point of contact between Shivakumar and the Congress for transferring the money. "I deny these allegations. I have not transferred any such money. The department has no proof of the transactions," said Mulgund.
The Congress party also alleged that the I-T department's action against Shivakumar was politically motivated and the party blamed the BJP for it. In a war of words, Shivakumar accused the BJP of motivating the "witch hunt" through the Income Tax department. However, BJP said that the department functioned independently.
Updated Date: Jun 21, 2018 18:44 PM