The Gujarat Criminal Investigation Department (CID) has initiated investigations and registered First Information Reports (FIRs) against three political parties following complaints from the Income Tax Department. The probe centers on an alleged network of bogus political donations totaling nearly ₹1,870 crore, which is estimated to have caused a tax loss exceeding ₹560 crore to the public exchequer.
Parties Under Scrutiny
The three parties identified in the cases are the Bharatiya National Janata Dal (BNJD), Swatantrata Abhivyakti Party (SAP), and Garib Kalyan Party (GKP). While all three are registered with the Election Commission of India, they are not yet officially recognized. The BNJD is registered in Gandhinagar, while the GKP and SAP operate from Ahmedabad.
Alleged Modus Operandi of the Donation Scheme
According to the FIRs and Income Tax complaints, taxpayers allegedly made donations to these parties through formal banking channels, including RTGS. In return, they reportedly received official receipts, which were then used to claim tax deductions for political contributions. Investigators allege that a significant portion of the donated money was subsequently returned to the original donors in cash, after deducting a commission ranging from 2% to 10%.
The funds were allegedly moved from the political parties' accounts to intermediary entities and trading firms, such as J Trading, Kajal Enterprises, and Parmar Associates. Bogus invoices for commodities like foodgrains and pulses were purportedly used to account for these transactions. The money was then withdrawn in cash and allegedly channeled back to the donors through informal networks, including Angadiya and hawala systems.
Cases Detailed
- Bharatiya National Janata Dal (BNJD): This party is at the center of the largest case, with alleged donations amounting to ₹1,143.85 crore from 56,238 donors between the financial years 2019-20 and 2024-25. The Income Tax Department estimates a tax loss of approximately ₹343 crore from these transactions. The FIR names BNJD president Surendrakumar Vitthalbhai Gajera, general secretary Vipul Solanki, treasurer Ronaksinh Chavda, and chartered accountant-auditor Adil Saiyed, alongside the party itself.
- Swatantrata Abhivyakti Party (SAP): This party allegedly received around ₹519 crore in donations, resulting in an estimated tax loss of approximately ₹155 crore.
- Garib Kalyan Party (GKP): The GKP reportedly recorded donations of about ₹206.76 crore, leading to an estimated tax loss of nearly ₹62 crore.
False Records and Legal Action
The Income Tax complaints further allege that false accounting records and contribution reports, including Form 24A filings, were prepared and submitted to the Election Commission of India to present these transactions as genuine political donations. Investigators claim that documents bearing digital signatures were used in this process.
The Gujarat CID has registered the complaints under various provisions of the Bharatiya Nyaya Sanhita (BNS), covering offenses such as cheating, criminal conspiracy, forgery, and the use of forged documents. The investigation is ongoing to uncover the full extent of the alleged fraud.