The Ahmedabad CID Crime wing has registered three separate complaints against unrecognised political parties, alleging a massive “accommodation entry” racket that defrauded the exchequer of nearly ₹1,870 crore. The Income Tax Department initiated the legal action after tracing a pattern where taxpayers routed money through banking channels, received bogus receipts to claim tax deductions, and subsequently got the cash back after intermediaries skimmed off a commission. This isn't just accounting fraud; it's a systemic abuse of the political donation tax regime.
The first case targets the Garib Kalyan Party, alleging ₹206.76 crore in bogus donations between FY 2022-23 and FY 2025-26. Assistant Director Yatish Shashikant Kale filed the complaint, naming nine accused including party president Neeraj Kumar Kshatriya and treasurer Dheeraj Kumar Kshatriya. The complaint details how funds moved through entities like Krishna Enterprises and Jalaram Enterprises. Fake bills for grains and pulses were generated to justify cash withdrawals. Donors allegedly claimed ₹134.48 crore in deductions under Section 80GGC, costing the government ₹62.02 crore.
The second complaint hits the Swatantrata Abhivyakti Party, alleging ₹519 crore in fraudulent transactions during FY 2023-24 and FY 2024-25. This case emerged after an Income Tax Investigation Wing search on July 14, 2025, found donor lists and evidence of cash returns on the devices of tax consultant Mehulkumar Maheshkumar Khatri. The complaint alleges that party president Surendra Parsotamprakash Tiwari and CA Mayursingh Chandansingh Rathod admitted during preliminary investigations that the party was created solely for commission and bogus entries, with no real political activity. The alleged loss to the treasury here is ₹155 crore.
The biggest sting is the third complaint, dated September 23, 2026, targeting Bharatiya National Janata Dal (BNJD). Deputy Commissioner Dr Rajendra Raj Jehra Ram alleges ₹1,143.85 crore in bogus donations involving a staggering 56,238 donors between FY 2019-20 and FY 2024-25. The accused include party president Surendrakumar Vithalbhai Gajera and CA auditor Adil Saiyed. The scheme allegedly used Sections 80GGB and 80GGC to claim 100% tax deductions. Funds were layered through firms like J Trading and Kajal Enterprises before being withdrawn as cash after 5-9% commissions were deducted.
The CID will now probe the 17 named individuals across these three complaints. Investigators are expected to trace the flow of funds through the shell companies and examine the digital records of the chartered accountants who signed off on the false contribution reports. The next step involves summoning the accused for interrogation and potentially seizing assets linked to the shell firms.