₹1,870 crore donations, ₹560 crore tax evasion: Gujarat CID probes 3 'political parties'

The Gujarat CID has registered FIRs against three political parties following complaints by the Income Tax Department over an alleged bogus political donation network involving nearly Rs 1,870 crore. The tax department has estimated that the alleged transactions resulted in a loss of more than Rs 560 crore to the exchequer, as reported by India Today.

The parties named in the cases are the Bharatiya National Janata Dal (BNJD), Swatantrata Abhivyakti Party (SAP) and Garib Kalyan Party (GKP). BNJD is registered in Gandhinagar, and the GKP and SAP are both registered in Ahmedabad. All the three political parties have registered with the Election Commission but are not recognised yet.

According to the FIRs and Income Tax complaints, taxpayers allegedly made donations through banking channels, received receipts to claim tax deductions and later got most of the money back in cash after commissions were deducted.

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BNJD case accounts for Rs 1,143 crore

The largest case concerns Bharatiya National Janata Dal. According to the Income Tax complaint, BNJD allegedly received Rs 1,143.85 crore from 56,238 donors between financial years 2019-20 and 2024-25. The department has estimated an alleged tax loss of around Rs 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, along with the party.

How the alleged donation network worked

According to the Income Tax complaint, taxpayers allegedly transferred money to BNJD accounts through formal banking channels, including RTGS. In return, they allegedly received donation receipts that enabled them to claim tax deductions for eligible political contributions.

Investigators allege that the money was subsequently moved from BNJD accounts to intermediary entities and trading firms, including J Trading, Kajal Enterprises and Parmar Associates.

The complaint alleges that purported invoices for commodities such as foodgrains and pulses were used to account for the movement of funds. The money was allegedly withdrawn in cash after passing through these entities.

Investigators further allege that a commission of between 2% and 10% was deducted before the remaining amount was returned to the original donors through informal channels, including Angadiya and hawala networks. The alleged arrangement therefore allowed donors to claim tax benefits on the reported donations while receiving most of the money back in cash.

SAP and GKP also under investigation

The other two cases involve substantial sums. The Swatantrata Abhivyakti Party allegedly received around Rs 519 crore, with the Income Tax Department estimating an alleged tax loss of approximately Rs 155 crore.

The Garib Kalyan Party, meanwhile, allegedly recorded donations of around Rs 206.76 crore, resulting in an estimated tax loss of nearly Rs 62 crore. Together, the three cases account for approximately Rs 1,869.61 crore in alleged donations and more than Rs 560 crore in estimated tax loss.

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Alleged fake records submitted to EC

The Income Tax complaints also allege that false accounting records and contribution reports, including Form 24A filings, were prepared to present the transactions as genuine political donations. Investigators have also alleged that documents carrying digital signatures were submitted to the Election Commission of India.

The Gujarat CID registered a complaint under relevant provisions of the Bharatiya Nyaya Sanhita (BNS) relating to offenses including cheating, criminal conspiracy, forgery and use of forged documents.