Police seized Rs 2.9 crore in unaccounted cash concealed inside gunny bags during a raid on a cement factory in west Bengaluru, leading to the detention of the factory owner and his business partner for questioning.
Tip-off leads police to hidden cash
Acting on credible information, Mahalakshmipuram police conducted a raid on the premises of Sheshadri Industries in Kurubarahalli on June 2. Officers had received a tip-off that a huge quantity of cash was being hidden inside a shed on the factory premises.
During the search, police inspected the cement storage shed and discovered several gunny bags containing bundles of cash. The total amount seized was estimated at Rs 2.9 crore.
Factory owner TM Nagaraju and his business partner, BB Venkatesh, were detained and questioned regarding the source of the money.
Owner cites financial struggles
During interrogation, Nagaraju reportedly told investigators that he had taken bank loans exceeding Rs 3 crore in 2018 to expand his business. However, the business suffered major setbacks during the Covid-19 pandemic, pushing him into severe financial distress.
According to police sources, Nagaraju claimed the seized cash consisted of hand loans borrowed from six individuals, including his chartered accountant. He said the funds had been collected to clear outstanding business liabilities.
Income Tax department to investigate
As the cash could not be immediately accounted for through valid financial records, the case has been handed over to the Income Tax Department for a detailed investigation into the source of the money and its legality.
Officials will now examine financial documents, loan records and other evidence to determine whether the cash was legally acquired or if any tax violations or financial irregularities were involved.
Police said further action will depend on the findings of the Income Tax investigation.