Cong Accuses BJP Govt of Shielding ₹10,000 Cr Tax Evasion Racket Involving ‘Fake’ Political Parties

NEW DELHI: In an explosive press conference at the party headquarters in New Delhi, senior Congress leader Shaktisinh Gohil leveled severe allegations against the BJP-led Union government, accusing it of overseeing and shielding a massive ₹10,000 crore tax evasion racket operating under the guise of political donations. Addressing reporters, Gohil alleged that 3,260 Registered Unrecognised Political Parties (RUPPs) across the country were functioning as “sham entities” designed primarily to turn black money into white while providing illegal tax exemptions to high-net-worth individuals and corporate donors.

Explaining the operational mechanics of the alleged scheme, Gohil detailed how the network exploits Sections 80GGC and 80GGB of the Income Tax Act, which allow full tax deductions for contributions made to registered political parties. Under this cash-back arrangement, donors route taxable funds through these unrecognised political entities, which retain a commission between 2% and 15% before returning the remaining balance to the donors in cash. Gohil noted that for individuals in top income brackets facing tax rates of up to 42.7%, such schemes serve as lucrative tax evasion channels. He asserted that despite tax tribunals and enforcement officials detecting these round-tripping frauds, the central government has deliberately blocked penalties and prosecutions because these sham entities act as the ruling party’s “C-team”.

To address the alleged scam, Gohil outlined a set of key demands from the Congress party. He called for an immediate Joint Parliamentary Committee (JPC) investigation to probe the full extent of the ₹10,000 crore tax evasion network. Additionally, he demanded strict legal enforcement, including the mandatory 200% penalty on fraudulent entities under Section 270A(9) of the Income Tax Act, alongside criminal prosecution under Sections 276C(1) and 277—which carry up to seven years of imprisonment—against party operators, bogus donors, and involved chartered accountants. Finally, Gohil urged the government to publicly disclose all donor data linked to these 3,260 entities and reveal how many individuals associated with these sham parties subsequently joined the BJP. Neither the BJP leadership nor the Election Commission has officially responded to the charges.