Gujarat Political Donation Case: ₹1,143 Crore Alleged Tax-Evasion Racket Uncovered

Ahmedabad: A large alleged tax-evasion and financial fraud network operating in the name of political donations has come under investigation in Gujarat, with authorities alleging that more than ₹1,143 crore was collected through bogus donation transactions over a six-year period.

A criminal case has been registered in Gandhinagar following a complaint by Dr Rajendra Raj, Deputy Commissioner of Income Tax, Unit 2-1, Ahmedabad. The complaint names the registered unrecognised political party Bharatiya National Janata Dal (BNJD) and several of its office-bearers.

According to the findings cited in the complaint, the alleged scheme operated between the financial years 2019-20 and 2024-25 and involved more than 56,000 taxpayers.

How the alleged donation scheme worked

Investigators allege that taxpayers were brought into the arrangement and asked to transfer money to the political party through formal banking channels, including RTGS.

The party allegedly issued donation receipts against these payments. These receipts were then reportedly used by donors to claim tax deductions under provisions of the Income Tax Act.

According to investigators, the transactions were not genuine political contributions. Authorities allege that false records and contribution reports were prepared to make the transactions appear legitimate.

The investigation estimates that the alleged arrangement resulted in an income-tax loss of around ₹343 crore to the national exchequer.

The case includes allegations of cheating, criminal conspiracy and forgery against the party and individuals named in the complaint.

Money allegedly moved through front businesses

Investigators further allege that after the money reached the party’s bank accounts, substantial amounts were transferred to accounts linked to various businesses and entities.

The complaint refers to firms including J Trading, Kajal Enterprises and Parmar Associates. According to the investigation, these entities were allegedly used as fronts to move the funds out of the political party’s accounts.

To support the transactions, investigators allege that fabricated invoices were created showing purchases of commodities such as food grains, pulses and other essential goods.

The money was allegedly withdrawn in cash after being transferred to these business accounts.

Investigators claim that a commission ranging from 2% to 10% was deducted from the amount. The remaining cash was allegedly returned to the original donors through informal financial networks, including Angadiya and hawala channels.

Party president named in complaint

The complaint identifies Surendrakumar Vitthalbhai Gajera, the party’s president, as a key figure in the alleged operation.

Investigators allege that Gajera supervised the network, determined commission rates and coordinated the use of various firms to move money and return cash to donors.

The allegations are part of the ongoing investigation and have not been established through a court verdict.

General secretary allegedly coordinated donor details

The party’s general secretary, Vipul Solanki, has also been named in the investigation.

According to investigators, Solanki allegedly worked with the party president to collect and exchange donor information through messaging platforms and helped issue signed donation receipts that investigators describe as bogus.

The investigation further claims that the party had little or no genuine political activity and maintained a limited social media presence that allegedly helped create the appearance of an operational political organisation.

Digital records and receipts seized

Investigators say searches conducted during the probe resulted in the recovery of physical and digital material.

At the residence of party treasurer Ronaksinh Chavda, officers allegedly recovered transaction-related receipts and digital communication records.

According to the complaint, some of the messages contained discussions with intermediaries about moving money through Angadiya channels after commissions had been deducted.

Investigators are examining these records as part of their effort to establish how the alleged financial network operated and identify the roles played by different individuals.

Chartered accountant also under investigation

The investigation has also named chartered accountant and auditor Adil Syed.

Authorities allege that Syed prepared and digitally signed audit reports for the party despite not visiting its office or independently verifying genuine financial transactions.

Statements recorded during the investigation allegedly indicate that the income and expenditure figures submitted by the party were fabricated.

Investigators suspect that these documents were used to give the alleged transactions an appearance of legitimacy and facilitate the operation.

Investigation continues

The case has brought attention to the use of political donation provisions and the possibility of fraudulent claims being made through registered but unrecognised political organisations.

Authorities are now examining financial records, bank transactions, digital communications and documents connected with the party and the businesses allegedly involved in the network.

The investigation’s findings and allegations will be subject to scrutiny during the legal process. The accused parties and individuals named in the complaint will have the opportunity to respond to the allegations in court.

The case highlights how investigators allege that formal banking transactions, donation receipts and financial documentation were used together to create an apparently legitimate trail while allegedly facilitating the movement of money outside the formal system.

News source: Information for this article was gathered from a variety of reliable news outlets.