Ahmedabad, Sep 28 (PTI) The Gujarat CID Crime on Monday said it has started investigations into FIRs against four registered unrecognised political party (RUPP) in a poll donation “scam” that prima facie caused Rs 680 crore loss to the government exchequer.
Over the past three days, four cases have been registered against RUPPs based on complaints from the Income Tax Department, said Rohan Anand, Superintendent of Police of the Anti Economic Offences Wing of CID Crime.
Raids conducted by IT officials around the 2022-23 period revealed that certain individuals had formed such parties to solicit funds and donations, thereby claiming income tax rebates, Anand said.
“These parties were not engaged in any actual political activity. Funds were being returned to the donors through angadia route, thereby facilitating income tax evasion and loss to the government exchequers of several hundred crore rupees,” he said.
“Preliminary findings indicate a loss of Rs 680 crore to the government exchequer in these four cases. Investigation is currently underway. We intend to secure the evidence gathered by Income Tax Department and are also seeking relevant records,” Anand added.
He said the CID is in the process of collecting documentary evidence, including bank trails, angadia (courier) slips, and party payment receipts, while efforts to locate the absconding individuals are also ongoing.
Additionally, a forensic examination of the audit reports available on the Election Commission of India (ECI) portal will be conducted as part of the investigation, he added.
Separate cases were registered against Swatantrata Abhivyakti Party (SAP), Ahmedabad-based Satyavadi Rakshak Party (SRP), Garib Kalyan Party (GKP) and one more such party whose name was not immediately known. Along with the office-bearers of the four parties, a few chartered accountants were also named as accused.
As per the FIRs, these parties allegedly collected donations from taxpayers and returned the money after deducting their own commissions.
As donations to political parties are exempt from income tax, the donors could claim a rebate by providing receipts against the tax deducted at source (TDS).
“Donations were accepted in the respective bank accounts of these parties. Subsequently, the funds were withdrawn for bogus purchases or expenses supported by fake bills. After deducting their own commissions, the parties would return the remaining cash to their donors,” as per the complaint by the IT Department.
Acting in collusion, these parties allegedly submitted false contribution reports to the Election Commission, thereby causing a financial loss to the government exchequer representing 30 percent of the donations received by them, the FIRs stated.
The accused CAs allegedly created bogus audit reports for the accounts of these entities and certain shell companies. PTI KA PD BNM
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