Varanasi, Jan 31 (IANS): The Income Tax Department on Monday was conducting raids at more than ten locations in Varanasi and Jaunpur in Uttar Pradesh.

According to the information, the raids were being conducted at the premises of various jewellers. The I-T Department after receiving vital inputs formed a dozen teams to look into the matter.

On Sunday evening, senior I-T officials had given instructions to all the teams to start conducting raids in Varanasi and Jaunpur.

A source close to the investigation said that it has been alleged that Hawala money was being pumped into the Assembly elections and some jewellers were involved in this.

A few transactions were detected by the I-T Department, which were suspicious in nature. The department doubted that the money was being made available to the people who are contesting elections, and the transaction of crores of rupees would be used in the canvassing of Assembly elections in Uttar Pradesh.

A list of few jewellers were prepared, who were allegedly helping the people in canvassing through the Hawala money.

On Sunday, the premises of a former IPS were also searched by the I-T teams in Noida sector 50.

As of now no official statement has been given by the I-T Department. The department will brief the media once the raids are over.

The source said that the teams were recording the statements of the employees of jewellers. The jewellery shop owners at whose premises the raids are being conducted have also recorded their statements.

The I-T team was scanning the ledger accounts of the jewellers. There are possibilities that the I-T team may summon their chartered accountants, if they have any, to question them regarding the last three years' transactions.