New Delhi: Amidst the mounting speculation of flow of black money to rig the assembly elections in five states, the Central Government on Saturday set up a committee which will monitor actions leading to violation of model code of conduct during the polls.

The Centre-appointed committee includes high level officials from banking department of Ministry of Finance, Reserve Bank and other probing agencies.

Notably, this is for the first time that the Union Government intervening into the electoral process has appointed a committee to facilitate fair and peaceful elections.

Sources said that however the committee will work unofficially but the information provided by it will be used by the Election Commission and other investigating agencies to probe the irregularities.

The committee will give special attention to bank transactions, courier companies in poll-bound states, real estate companies, vehicles being used for carrying money for bank ATMs and prominent hawala traders.

It is noteworthy, the Election Commission in a bid to carry fair elections and restrict the flow of black money, has enforced stringent measures in the poll-bound states including Uttar Pradesh, Punjab, Goa, Uttarakhand and Manipur.

Unaccounted money worth Rs 40 crore has been seized from Uttar Pradesh and Punjab alone after the model code of conduct was enforced.

To keep a tab on the election expenses, the EC has announced that the transactions of money for the election purposes would be done through bank accounts only. Hence, chances are high that black money will be used on large scale.