The income tax department declared that the cash seized from the five poll-bound states is the highest ever. Nitin Gupta, chairman of Central Board of Direct Taxes, said the cash seized by the department is much more than that seized during any assembly polls in these states and 2019 Lok Sabha elections.

Sources in the department told CNBC-TV18 that the total cash seized in Chhattisgarh, Madhya Pradesh, Rajasthan, Telangana and Mizoram have already crossed ₹1,000 crore. Tax officers suggested that the most popular among these seizures is cash followed by liquor and gold.

"We are maintaining vigilance from our side and there is round-the-clock surveillance covering each district in the poll-bound states. This especially including airports and international border. This surveillance is coordinated at the level of the election commission and the tax department is doing what it has been asked to do. We are coordinating with the state election authorities and other agencies to target more and more unaccounted cash and other kind of freebies ahead of polls," Gupta said.

Tax officers said that the department is also relying on technology to track illicit payments and cash transactions ahead of polls.

In Telangana alone, a total of ₹20.43 crore in cash, 31.979 kg gold, 350 kg silver and 42.203 carat diamond, all worth ₹14.65 crore besides liquor worth ₹86.9 lakh, ganja valued at ₹89 lakh, and other freebies worth ₹22.51 lakh were seized after the model code of conduct came into force on October 9. The disclosure was made by the office of the Chief Electoral Officer of Telangana.

Earlier this year during the Karnataka polls, official data showed that there has been a fourfold increase in the total seizure, which stood at ₹322 crore in 2021, went up to ₹347 crore in 2022, and ₹1,021 crore in 2023.

According to the election commission, there was a 4.5 times increase in seizures in Karnataka during the polls over ₹375 crore. Out of this, the Enforcement Directorate attached assets worth ₹288 crore following the imposition of the Model Code of Conduct in the state.

During the 2019 Lok Sabha polls, the total seizure was nearly ₹540 crore including ₹143.47 crore in cash, and liquor at ₹89.64 crore. Drugs and narcotics made a big chunk of the poll seizures and stood at ₹131.75 Crore. Precious metals seizure was worth ₹162.93 crore and other freebies were worth ₹12.202 crore.

July, the Central Board of Indirect Taxes and Customs (CBIC), also issued a Standard Operating Procedure (SOP) for tax officers to implement the directions of the Election Commission with regard to the use of freebies, illicit cash, liquor and drugs used to lure voters.