NEW DELHI, Sept 10:
The Congress has alleged that an income-tax evasion racket involving more than Rs 10,000 crore was operated through registered unrecognised political parties (RUPPs) and demanded a Joint Parliamentary Committee (JPC) probe into the matter.
Congress leaders Shaktisinh Gohil and Jairam Ramesh raised the allegations at a press conference, claiming that as many as 3,260 RUPPs were being used as vehicles for tax evasion. They questioned why stringent action had not been taken against those allegedly involved in the racket.
Gohil alleged that donations worth more than Rs 10,000 crore had been routed through such parties. According to the allegation, commissions ranging from 2 per cent to 15 per cent were retained by intermediaries, while the remaining amount was allegedly returned to donors in cash.
The Congress leaders referred to provisions of the Income Tax Act that provide tax benefits for eligible contributions to political parties. They alleged that these provisions were being misused by routing bogus donations through parties that have little or no genuine political activity.
Ramesh questioned why the government had not initiated investigations and criminal proceedings in cases involving the alleged tax evasion. He also referred to the action taken against the Congress before the 2024 Lok Sabha election, including the freezing of party bank accounts and tax demands.
The Congress alleged that some of the unrecognised parties may have enjoyed political patronage and demanded that the government explain why the agencies concerned had failed to act. It sought a JPC investigation to establish the source of the funds, the beneficiaries and the role of intermediaries.
The allegations come amid a wider political debate over political funding, tax exemptions and transparency in the functioning of political parties. The claims made by the Congress are allegations and would require investigation by the competent authorities to establish the facts.