Bogus-donations scam
In the Garib Kalyan Party case, income tax department has alleged bogus donations of Rs 206.8 crore from FY 2022-23 to FY 2025-26. The second complaint alleges that Rs 519 crore passed through the bank account of Swatantrata Abhivyakti Party (SAP) during FY 2023-24 and FY 2024-25. In Garib Kalyan Party case, the department has estimated an alleged loss to the govt exchequer of about Rs 62 crore. In Swatantrata Abhivyakti Party case, the alleged loss is pegged at Rs 156 crore, calculated at 30% of the alleged Rs 519 crore donations.
The two complaints relate to Garib Kalyan Party and Swatantrata Abhivyakti Party, both described in the complaints as registered unrecognised political parties (RUPPs). In both cases, some taxpayers allegedly transferred money to a political party’s account through banking channels and obtained donation receipts to claim deductions under Section 80GGC. The funds were subsequently routed through intermediaries or sham business entities, withdrawn, and allegedly returned to donors in cash. The FIR names Neeraj Kshatriya, president of GKP, party secretary Dhananjaysingh Rajput, and treasurer Dheeraj Kshatriya. The FIR names Surendra Tiwari, national president of the party; tax consultant Mehulkumar Khatri; and CA Mayursingh Rathod. Some taxpayers allegedly send money to the political parties through cheques or other banking channels The parties allegedly issue donation receipts, enabling the taxpayers to claim a deduction under Section 80GGC Investigators allege that bogus bills and accounting entries were created to show that the political party had purchased goods or services