Tax evasion: I-T department conducts raids on contractors and builders across Karnataka

Bengaluru/Mysuru: The Income Tax (I-T) department on Wednesday launched multiple surprise raids in different parts of the state, including in Mysuru and Bengaluru.

This is the first major search operation launched by the I-T department in 2025.

According to officials, the raids were related to income tax evasion and in some cases, non-payment of taxes. Sources said that this time, the major parts of the raids were concentrated in Mysuru, while a few premises were searched in Bengaluru.

In Mysuru, the officials raided the properties of two Civil contractors on Wednesday morning. The searches were held at the MPro Palace Hotel on Mysuru Ring Road owned by Kanthraju. His residence in Manasi Nagar and a few properties of his partners were also raided, officials said.

The residence of Jayakrishna, a class 1 civil contractor in Ramakrishna Nagar, was also raided by the officers. Around 50 officers arrived in 10 cars, inspected the documents and gathered evidence.

While no big names emerged in Bengaluru, well-placed sources said that raids targeted builders and businessmen and were also probing suspected financial irregularities. In some cases, the cars of the officers were disguised so the suspects wouldn’t be alerted of the surprise inspections.

Sources said that before the raids, the investigators were monitoring bank statements — including cash deposits and withdrawals — wire payments, bank accounts and cheque deposits of the suspects for several weeks, as part of the preliminary probe.