In Tami Nadu, the Election Commission has recovered close to Rs 12 crore unaccounted cash during the election campaigning so far.
The Election Commission has written to the Reserve Bank of India asking for more inputs after its chief Raghuram Rajan said the circulation of cash in the country may have gone up by Rs 60,000 crore because of the upcoming elections.
Dr Nasim Zaidi, the Chief Election Commissioner, who was in Chennai on Friday, said, "We are writing to engage with the Reserve Bank of India. We are requesting to provide inputs for us to take action".
It's for the first time the RBI has quantified the surplus money that's pumped in during elections, strengthening allegations that parties and candidates spend much above permitted amount for campaigning.
"Around election time, cash with the public does normally increase... You can guess as to reasons why, we can also guess," Mr Rajan said on Thursday. He added that such a 'spike' in cash inflow was "not normal".
In Tami Nadu, the Election Commission has recovered close to Rs 12 crore unaccounted cash during the election campaigning so far.
In a bid to check inflow and misuse of cash for votes, the Election Commission will also increase the Election Expenditure Observers, and will also rope in IAS Officers currently under training.
Voting in the state will take place on May 16; counting on May 19.