A 27-year-old man from South 24-Parganas district was arrested after he allegedly failed to explain the source of the Rs 1 crore that police said was found on him while he was walking along Park Street on Monday evening.
The police said he could not provide any information on the source or destination of the money.
The police have been conducting checks across the city for unaccounted cash as the Kolkata Municipal Corporation elections are only a few days away.
A team of officers of the special task force of Kolkata police intercepted Pritam Pal, a resident of Maheshtala in South 24-Parganas, in front of a school on Park Street.
“He had stepped out of a building and was heading to another location. He was walking on Park Street and carrying the cash in a backpack,” said an officer.
Pal was taken to Park Street police station where a case of theft was drawn up against him.
The model code of conduct is in force in the 144 wards of the KMC, where the civic elections are scheduled for December 19. It will remain in force till the declaration of the results on December 21.
The model code of the state election commission does not set any limit on the amount of money one can carry before or during polls, but any amount more than Rs 50,000 requires documents specifying the source and the destination of the money.
If the police find someone carrying more than Rs 10 lakh, they have to inform the income tax department.
The police said they had informed the income tax department about Monday’s incident.
The department will formally seize the money and initiate a probe into its origin.
According to the rule, if someone comes forward to claim the money, proportionate tax has to be deposited to regularise the money and claim it.
Senior police officers said if someone needs to carry cash while the model code of conduct is in place, he or she needs to carry his/her identity proof and documents related to the origin of the money and the reason for which it is going to be used to avert legal action.