Authorities confirm transactions were legitimate after document verification
New Delhi: After the enforcement of the Model Code of Conduct in Kerala, authorities intensified financial monitoring, leading to the scrutiny of a high-value transaction involving Dr. Mallappa.
In one such instance, a case from Kerala has come to light where election authorities and Income Tax officials flagged a high-value cash withdrawal made shortly after the MCC came into effect.
On March 16, a day after the MCC was enforced, Dr. Bhargav Mallappa, a resident of Krishnagiri district, withdrew ₹12 lakh from a bank account held in the name of his wife, Ragin Mariya, with Axis Bank. On the same day, gold worth approximately ₹7.50 lakh was also purchased.
The transactions drew the attention of ECI officials, who are currently on high alert to monitor suspicious cash movement that could potentially influence electoral processes. Mallappa was subsequently contacted by Income Tax officials and asked to furnish relevant documents, including withdrawal slips and purchase bills.
According to existing norms during the MCC period, individuals are permitted to withdraw any amount from their bank accounts. However, withdrawals of ₹10 lakh or more are routinely reported to the Income Tax Department for scrutiny. Additionally, carrying cash exceeding ₹50,000 without valid documentation may lead to seizure by flying squads deployed for election monitoring.
Dr. Mallappa, who is an acclaimed social preneur, clarified that the withdrawal and purchase were made in preparation for his sister’s upcoming wedding. Upon submission of supporting documents and bills, the matter was resolved without further action.
Speaking on the issue, Dr. Mallappa said that the transaction was driven by a family requirement and emphasized that he has complied with all regulatory requirements. He added that he has cooperated with authorities in the past as well and remains committed to adhering to all rules.
Dr. Mallappa is a socially responsible individual and a regular taxpayer, with no prior record of financial irregularities. His prompt cooperation and transparent documentation helped authorities conclude the verification process without delay.
The incident underscores the strict vigilance being maintained by election authorities and Income Tax officials during the MCC period, where even legitimate financial activities are subject to verification to ensure free and fair elections.
