Hyderabad, July 2: The tax sleuths had thought it was pure waste of energy. By the time they were through, it was a cash crop they had reaped.

A 23-crore cash crop, in 100- and 500-rupee notes.

Not from palatial dwellings of businessmen but from humble homes of farmers.

Five-hundred-rupee notes had been stuffed in the toilet, rolled up and shoved under the pedestal for the home deity, or tucked away in the shoe rack and in emptied water drums and utensils.

“It appeared as if they had no respect for 500-rupee notes. They were lying everywhere, even among children’s books,” said a sleuth after Sunday’s hush-hush raid on seven Andhra farmers.

The raid by investigators of the income tax and vigilance departments had followed a tip-off that cash was hoarded in some houses in villages on Hyderabad’s outskirts.

None of the sleuths expected a big haul. A few lakhs, at the most, they reckoned. In short, a waste of time.

But what they saw left them “stunned” — and grinning.

“Most of us kept laughing at the innocence of the farmers. They had kept money wherever they could. Cooking vessels, suitcases, water drums, sleeping mats, rice bags, almirahs, chappal stands and below the stand for idols,” said an investigator.

But where did the money come from?

No mystery there. Land costs had rocketed after the Shamshabad international airport and infotech corridors came up in these areas. Even a person with 500 square yards was a millionaire here.

The seven had in January sold their land — nearly 18 acres — at Rs 3 crore an acre to some undisclosed consultants for special economic zones. They got 80 per cent of the payment in cash. The rest was in bank drafts.

“We requested the banks to accept our deposits but were told we might have to pay huge taxes. So we were compelled to keep the cash in our homes,” said Narayana, whose father sold two acres.

The price of land in these areas has zoomed even further in the five months since January. It now hovers between Rs 16 crore and Rs 21 crore an acre.

As cash was everywhere in the home, the farmers stopped cooking out of fear the notes might catch fire. For the past month or so after they got the money this financial year, the farmers have been getting food from outside.

“We have no other place to keep the cash,” said Govindappa, whose family sold eight acres.

All the farmers surrendered their money to the tax sleuths without any resistance. The tax officials later deducted capital gains tax from the amount and left.

“As there was no illegality, we allowed the farmers to keep their share after taxes but advised them where to keep the cash,” said an IT official.

According to rules, there is no limit on the amount of hard currency one can keep at home, provided there is a valid explanation for its source.

If cash from a land deal is taken away after a raid, part of it can be returned after deducting taxes and penalties. But this depends on the raided person agreeing to the taxes and the fines imposed. Otherwise, the money will remain in limbo as court cases drag on.

Sunday’s haul, however, helped Andhra’s income-tax circle race past all other tax regions in the country in terms of cash seizure. In the three months of this financial year, the Andhra zone has netted some Rs 43 crore in cash.

“We have created a record in cash seizure,” said an official. “I don’t think any state can surpass this.”

Tough, indeed, if you take into account the weight of the haul. The Rs 23-crore harvest weighed about 210kg. And it took almost a day to count the amount.