Politics | Updated Apr 13, 2009 at 05:12pm IST

Candidates use Hawala to access more funds

Shaik Ahmed Ali, CNN-IBN

Hyderabad: Flags, banners, posters are all essential ingredients of an election campaign. But for many candidates, the real campaign begins 48 hours before polling day, when inducements reach fever pitch.

Additional DGP (Law & Order) Hyderabad, A K Khan says, "Earlier we used to see that most of the money distribution used to take place at the previous night to polling day or two days preceeding the date of polling. Even now this could happen. In addition to that, we are also finding that lot of money is going into the election areas much earlier this time."

With the police looking out for dirty money, candidates this time are using hundi (hawala) operators. The hundi channel was considered the most reliable mode of sending money from Gulf countries to Hyderabad.

It faded away when official money transfers became easier, but the elections have brought the business back. Police say hundi operators have transferred at least Rs 500 crore in cash over the last month.

Many hundi operators use modified scooters and cars to safely carry cash. The petrol tanks of scooters are replaced with smaller tanks, and the remaining area is used to conceal cash. This is very difficult for police to notice during a routine check.

Similarly, the roof mats of cars are replaced with mats containing thin bundles of cash. Sometimes, cash is also concealed in the stepney tyres. These modified vehicles can carry up to Rs 10 lakh.

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