The criminal complaint alleges that BNJD, led by Surendrakumar Vitthalbhai Gajera, collected more than ₹1,143 crore in sham political donations by tricking 56,000 taxpayers into transferring money through official banking channels, then issued bogus receipts for 100% tax deductions.
Investigators say the scheme generated a direct tax loss of ₹343 crore to the exchequer, with funds funneled into front firms such as J Trading, Kajal Enterprises and Parmar Associates before being siphoned back to donors via Angadiya and hawala networks after a commission of 2–10%.
Searches at the treasurer’s home uncovered transaction receipts and digital chats that confirm the commission structure and the use of dummy firms, while a chartered accountant, Adil Syed, is accused of forging audit reports to mask the fraud.
The BNJD maintained only a superficial social media presence and no real political activity, according to investigators, which helped the fraud remain undetected for years.
The case, now in the hands of the Special Court in Gandhinagar, will test the limits of India’s tax‑evasion enforcement and may prompt a review of the political donation disclosure system.
Residents of Gandhinagar say they are relieved to see the crackdown, but fear more hidden schemes.