Sources in the Intelligence Bureau have said that money for election campaigns was being channelised by politicians who had earlier parked it with operatives in the Gulf. Vicky Nanjappa reports.
The Intelligence Bureau on Wednesday warned the Election Commission of India about possible hawala funds being transferred to fund the elections in Uttar Pradesh. The input further stated that the money was being channelised through countries in the Gulf and arrived in UP to fund the election campaigns of some politicians.
This, however, was something to be expected considering that the stakes in these elections are extremely high. Some politicians were bound to use hawala money to avoid being tracked, as they have found the spending limit set by the Election Commission of India to be too low.
While it is clear that the battle for UP will be fought hard, caste and money power will play a major role in the fight.
As per the input received by IB, the money is being channelised by politicians who had earlier parked money with operatives in the Gulf. The Gulf is the biggest hawala market and the country has often been accused of controlling the hawala market in Kerala, which is the biggest in the country.
Officials in the IB say that there is a need to keep track on both types of funding -- hawala and fake currency -- during these elections.
There are many areas in UP that have a large market for such funding and it is possible that they would have activated themselves during this election. They are aware that politicians have a cash crunch due to the spending bar set by the EC.
Hawala funds are normally tracked after a terrorist operation and also during elections when the need for money is really high. The roots of hawala money and politics can be traced to Hyderabad. It was the Gulf market that pumped in most of the funds.
During an investigation it was found that the money that was pumped in belonged originally to big-time politicians and also actors who had sent their black money to the Gulf only to get it back in the form of a hawala transaction during the elections. The case of UP could also be similar, sources point out.
In the past, obscene amounts to the tune of Rs 1000 and Rs 2000 crore have been transferred by hawala operatives during the elections. Investigators have always found it tough to track such money and in the bargain these people get away scot free while dodging every agency.
During elections it has been found that such money was usually distributed among the voters. It is not used for flags and banners, as the spending on such items is easily tracked. After the spending limit was imposed, it became extremely difficult for politicians to justify their spending as everything was accounted for.
While politicians see the need to invest in banners, flags and other election related material, when it comes to a note for vote scenario, they find the going getting tough. "This led to illegal methods such as the use of hawala operations," sources say.
Election Commission officials will take into consideration the Andhra Pradesh scenario while monitoring these elections. There will be a close watch on every vehicle in every constituency. In AP it was found that hawala money was concealed in petrol tanks of vehicles, under the mats and also tucked into the upholstery of the vehicle. There would be thorough checks to ensure that hawala does not play any role and every step would be taken to ensure that the elections are clean.
However, officials say that there is a very good chance of the money coming in from within the country as well. It could have come well in advance and have been stashed at safe homes and used during the elections. UP in particular has a history with fake currency and hawala money and it is not a new ground for operatives to circulate their dirty money.
Apart from the Gulf, money through these channels has been pumped in from Old Delhi, Kerala and also Andhra Pradesh. These three areas have always found to have a very close nexus with UP. The other place that is under the scanner of investigators is Nepal which is another major destination from where dirty money is pumped into the country at such times, investigators say.
