New Delhi : Congress Rajya Sabha MP Shaktisinh Gohil addressed a press conference at the Congress headquarters in New Delhi and alleged large-scale tax evasion involving Registered Unrecognised Political Parties (RUPPs). He demanded a probe by a Joint Parliamentary Committee (JPC) and strict action against those found involved.
Gohil put forward the following demands:
- The alleged tax evasion scam should be investigated by a Joint Parliamentary Committee.
- A 200% penalty should be imposed under Sections 270A(9) and 2A.
- Criminal cases should be registered against Chartered Accountants allegedly involved under Sections 276C(1) and 277, with their licences revoked if found guilty.
- Criminal cases should be filed against leaders of alleged fake political parties.
- All information related to political donations received during elections should be placed in the public domain.
- Details should also be made public regarding how many people associated with alleged fake political parties subsequently joined the BJP.
Gohil alleged that while ordinary citizens honestly pay their taxes, certain individuals and businesses linked to what he termed the BJP’s “C team” were allegedly using fraudulent means to evade taxation.
He said individuals earning more than Rs 5 crore are subject to a basic income tax rate of 30%, along with a surcharge and Health & Education Cess, taking the effective tax burden to as much as 42.7%. He alleged that some large businessmen were avoiding their tax liabilities through fraudulent transactions involving political donations.
Congress Raises Questions Over RUPPs
Gohil claimed that there are 3,260 Registered Unrecognised Political Parties (RUPPs) in the country and alleged that these parties had collected donations amounting to around Rs 10,000 crore.
Referring to provisions of the Income Tax Act concerning political contributions, he alleged that the system was being misused to claim tax benefits through donations to political parties.
He said that the law provides for scrutiny of donation details submitted during income-tax filings and that exemptions can be withdrawn if irregularities are detected. He also pointed to provisions providing for interest, penalties and criminal prosecution in cases involving incorrect information or alleged fraud.
According to Gohil, fraudulent cases can attract penalties of up to 200%, while serious offences may result in criminal prosecution, imprisonment of up to seven years and fines.
Congress Questions Government’s Inaction
Gohil said that when the EDR report was released in August 2025, it was the responsibility of the Modi government to initiate action against those allegedly involved.
He alleged that despite the government stating that donations identified as problematic should be rejected and benefits denied, no significant action had been taken against those allegedly responsible.
He also alleged that Chartered Accountants played a major role in facilitating tax evasion and claimed that Income Tax officials had recommended action against some CAs. Gohil alleged that no such action was initiated because of political protection.
Referring to observations of the Income Tax Appellate Tribunal, he argued that tax evasion and the generation of black money could adversely affect the country’s economy and security. He accused the Modi government of shielding individuals allegedly linked to the ruling establishment.
Gohil Questions Election Commission’s Role
Gohil also questioned the role of the Election Commission of India in monitoring political funding.
He referred to the Election Commission’s guidelines on “Transparency and Accountability in Political Funding”, under which, he said, state election authorities are responsible for scrutinising political parties’ donations and expenditure and sharing relevant information with the Income Tax Department and the public.
Gohil alleged that the Election Commission had failed to fulfil this responsibility and questioned whether there was any understanding between the poll panel and the BJP.
He also criticised the changes to the process for appointing the Chief Election Commissioner (CEC), alleging that Prime Minister Narendra Modi removed the Chief Justice of India from the selection process and replaced the CJI with a Union Minister.
Gohil alleged that the revised system allows the Prime Minister and the Union Home Minister Amit Shah to have greater influence over the appointment of the CEC.
Note: The allegations above are attributed to Congress MP Shaktisinh Gohil and should be presented as allegations rather than established facts.