Ahmedabad: Income Tax department has filed a third complaint before CID Crime’s Economic Offences Wing in Gujarat, alleging a Rs 415-crore bogus political donation racket involving the Satyavadi Rakshak Party, a registered unrecognised political party, its office-bearers and a cost management accountant (CMA).
On Friday, the Income Tax department flagged two alleged bogus political donation networks involving transactions of more than Rs 725 crore, with separate complaints filed with EOW. The complaint alleges that the network was used to generate bogus donation receipts, enable tax deductions for donors and subsequently return the money in cash after deducting commission. The two complaints relate to Garib Kalyan Party and Swatantrata Abhivyakti Party, both described in the complaints as registered unrecognised political parties (RUPPs).
The money was allegedly withdrawn from the party’s accounts, with 5% to 10% retained as commission, while the balance was returned to donors in cash. The complaint puts the total transactions in the party’s bank accounts during FY 2022-23, 2023-24 and 2024-25 at Rs 415 crore. The complaint estimates the alleged loss to govt at Rs 124.5 crore, calculated at 30% of the alleged Rs 415 crore donations.
A key allegation is that Mehta prepared and digitally signed contribution reports and balance sheets without carrying out proper verification of the underlying transactions. You Can Also Check: Gold Rate in Ahmedabad | Silver Rate in Ahmedabad | Bank Holidays in Ahmedabad | Public Holidays in Ahmedabad | Ahmedabad AQI | Weather in Ahmedabad | Petrol Price in Ahmedabad | Diesel Price in Ahmedabad | CNG Price in Ahmedabad | LPG Price in Ahmedabad Stay updated with the latest Ahmedabad news.
These documents were subsequently uploaded on Income Tax portal, according to the complaint. Income Tax department alleges that the accused acted in concert to route donations from taxpayers into the party’s bank accounts through cheques and banking channels. The complaint alleges that donors were issued receipts for political contributions, enabling them to claim deductions under Section 80GGC of the Income Tax Act. The department alleges that the party had no genuine political activity and that its accounts did not contain corresponding genuine vouchers, bills or expenditure records. The department has further alleged that bogus expenditure and purchase bills were created to give the transactions a legitimate appearance and facilitate cash withdrawals. Download the TOI App.
Deputy director of Income Tax, Investigation Bharuch, the alleged racket involved CMA Brijesh Mehta, along with Satyavadi Rakshak Party office-bearers Swati Patel and another office-bearer and Biren Mehta, according to the complaint registered on Saturday evening by Saurav Garg.