Congress seeks JPC probe into ₹10,000-crore tax evasion via unrecognised parties

The Congress on Wednesday demanded a Joint Parliamentary Committee (JPC) investigation into what it termed a "donation scam," alleging that 3,260 registered unrecognised political parties (RUPPs) collectively received donations while evading income tax to the tune of ₹10,000 crore.

Speaking at a press conference in New Delhi, Congress MP Shaktisinh Gohil said these parties were allegedly used as conduits to convert unaccounted money into legitimate-looking political donations through round-tripping and similar methods. He accused the government of inaction despite the issue being flagged in a 2025 report.

Party general secretary Jairam Ramesh, in a post on X, alleged the parties operated under the "patronage" of the Bharatiya Janata Party, questioning who the "Chanakya" behind the sham entities was. He contrasted the alleged evasion with the Congress's own experience before the 2024 Lok Sabha elections, when its bank accounts were frozen and it received tax notices, asking why no similar scrutiny was directed at the 3,260 parties.

The party noted that provisions of the Income Tax Act granting tax benefits on donations to registered political parties were being misused through the RUPPs. Mr. Gohil said the government should investigate both the parties and their donors, pointing out that a 200% penalty can be imposed on those found guilty, with criminal proceedings possible against individuals and chartered accountants involved.

He demanded cancellation of licences for chartered accountants found guilty and criminal cases against those running the alleged bogus parties. The Congress also sought public disclosure of donation details and information on individuals linked to these parties who later joined the BJP.

Mr. Gohil alleged that no action had been taken against anyone despite the scale of the alleged evasion, claiming officials had recommended action but orders had not come from the "top." He also questioned the Election Commission's role in scrutinising party funding and expenditure, alleging a failure to ensure transparency, and reiterated the demand for a JPC examination of the entire matter.