The Income Tax (IT) officials carried search and seizure operations on several prominent contractors in Karnataka on Thursday, October 12, and reportedly recovered more than Rs 40 crore from a contractor who was part of the group of contractors who led the 40% commission campaign against the previous BJP government.  The raids were conducted in at least 25 locations in Bengaluru.

IT officials reportedly recovered a huge cache of cash from an apartment building allegedly linked to R Ambikapathy, the president of the BBMP Contractors’ Association, according to media reports. Ambikapathy is also the vice-president of the Karnataka Contractors’ Association. The money was stored in more than 20 cardboard boxes in an apartment where the contractor himself did not reside, according to the Kannada media. The IT department is yet to give any official statement. 

Ambikapathy has been a prominent figure in the 40% commission campaign led by the Karnataka Contractors’ Association. The association had levied allegations that the previous BJP government demanded a cut of 40 percent cost of a project as commission to clear bills of contractors, leading to significant political unrest within the state. This corruption campaign was one of the factors which led to the BJP losing power in the state.

Ambikapathy was also one of the contractors who had been arrested in connection with a criminal defamation case filed against them by former minister Munirathna, although they were subsequently released.

According to The Hindu, Ambikapathy's wife, Ashwathamma, is a former corporator affiliated with the Janata Dal (Secular). The couple shares close ties with former JDS and Congress MLA from Pulakeshinagar, Akhanda Srinivasamurthy.