Income Tax Department has raided several contractors in Karnataka and recovered huge case from their possession. Income Tax Department has hinted that the cash hoarding may be the reason behind the cash crunch and the ATMs running dry. Intelligence collected by the state investigation unit indicated that many contractors were in possession of huge stocks of cash in the higher denominations of Rs. 500 and Rs. 2000. Searches were carried out between the April 24 and 26 and Rs. 6.76 crore was seized from four contractors in the Mysuru area. The entire amount was in high denomination notes that was not reflected in the account books of the contractors, said a press release.