R C Khuntia, the Congress MP from Orissa, was questioned and later allowed to take the flight after he told the tax sleuths that he was carrying the money as part of the 'party fund' from Patna to New Delhi, I-T department sources said.
Khuntia did not respond to repeated calls and SMSes sent by PTI in this regard.
The I-T department initiated action after it recently activated an Air Intelligence Unit at the Patna airport and Ranchi. The unit was set up at the behest of the election commission which had asked the finance ministry to deploy the sleuths to check and curb illegal use of money in Bihar polls starting from October 21 in six phases.
Sources said that after Khuntia was stopped at 10 am on Wednesday, he was questioned about the cash in his possession. The MP produced a letter he was carrying allegedly of party treasurer Motilal Vora giving him the authority to take the cash.
The I-T sleuths allowed him to board the flight, as 'party funds' are recognised as legal money under the Income Tax Act, sources said.
The EC has recently activated an election expenditure monitoring cell to curb the use of illegal money with a senior Indian Revenue Service officer at the helm and almost 150 I-T and customs officials have been designated as election expenditure observers for Bihar.
According to EC guidelines, a candidate can spend a maximum of Rs 10 lakh for assembly polls and Rs 25 lakh for parliamentary polls in Bihar. Illegal gratification and bribe in terms of cash or any other medium like cash coupons are punishable under various provisions of the Indian Penal Code and the Representation of Peoples Act.
The Bihar assembly polls are the first assignment for the new cell in the EC which has recently brought out new guidelines like the creation of 'shadow' expenditure register and exclusive election bank accounts by the candidates trying their luck in the electoral battle.
