Gujarat CID files FIRs against 3 political parties over ₹314 crore donation scam

Ahmedabad: The Gujarat CID-Crime on Saturday registered three separate FIRs against three political outfits over their alleged involvement in a bogus donation and tax evasion racket that reportedly caused a loss of around ₹314 crore to the government exchequer between financial years 2022 and 2025.

The cases were registered against the Anand-based Swatantrata Abhivyakti Party (SAP) and Ahmedabad-based Satyavadi Rakshak Party (SRP) and Garib Kalyan Party (GKP), based on complaints filed by the Income Tax Department, CID officials said.

According to the FIRs, the parties allegedly collected donations from taxpayers and returned most of the money after deducting a commission. Since political donations can qualify for tax benefits subject to applicable legal conditions, the donors allegedly used donation receipts to claim tax deductions.

The alleged modus operandi involved depositing donations into the bank accounts of the political parties, followed by withdrawals shown against purported purchases or expenses backed by allegedly fake bills. After deducting their commission, the remaining amount was allegedly returned to donors in cash, according to the FIRs.

The cases also allege that the parties submitted false contribution reports to the Election Commission, resulting in an alleged loss to the exchequer equivalent to around 30% of the donations received.

Office-bearers of the three parties, along with several chartered accountants and other individuals, have been named as accused. CID officials claimed that some of the accused office-bearers admitted during the inquiry that the parties had been formed primarily to earn commissions by facilitating tax evasion. No arrests have been made so far.

In the case involving the Swatantrata Abhivyakti Party, the Income Tax Department’s complaint alleges bogus donations of around ₹519 crore, resulting in alleged tax evasion of approximately ₹155 crore. The accused include party office-bearers, a tax consultant and a chartered accountant.

A separate FIR names nine people, including the president, secretary and treasurer of the Garib Kalyan Party, along with three chartered accountants, in connection with alleged tax evasion of around ₹62 crore.

The third FIR names three office-bearers of the Satyavadi Rakshak Party and a cost and management accountant over an alleged criminal conspiracy that caused a financial loss of approximately ₹124.5 crore, according to the complaint.

The FIRs further allege that chartered accountants involved in the transactions prepared bogus audit reports for the political parties and certain shell companies.

The CID-Crime has begun further investigation into the alleged transactions, the officials said. DeshGujarat