Are Gujarat unrecognised political parties a front for tax-evasion?
Gujarat police are investigating several unrecognised political parties for alleged tax evasion involving nearly ₹1,870 crore in donations. The Income-Tax Department claims these parties acted as fronts to help donors launder money and claim illegal tax deductions.
Why it matters
The investigation exposes potential systemic abuse of political donation laws, raising concerns about financial transparency and the integrity of the electoral funding system.
Story so far : The Gujarat police have registered First Information Reports (FIRs) against several Registered Unrecognised Political Parties (RUPPs), based on complaints from the Income-Tax Department alleging irregularities. With respect to the Bharatiya National Janata Dal (BNJD), the Swatantrata Abhivyakti Party (SAP), and the Garib Kalyan Party (GKP), the combined “political donations” are nearly ₹1,870 crore and the alleged transactions resulted in an estimated tax loss of about ₹560 crore to the exchequer. Another matter is related to the Satyavadi Rakshak Party (SRP), involving ₹415 crore in alleged donations and an estimated Rs.124.5-crore loss, according to news reports.
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