Abhijit Roy Chowdhury
NEW DELHI, Sept 9: The Congress on Wednesday demanded a Joint Parliamentary Committee (JPC) probe into an alleged Rs 10,000-crore tax evasion racket involving 3,260 registered unrecognised political parties (RUPPs), and sought criminal prosecution of those involved.
Senior Congress leader and party spokesman Shaktisinh Gohil alleged that the RUPPs were being misused to generate black money by allowing individuals and companies to claim tax benefits on political donations, with a portion of the money subsequently returned to donors in cash after deduction of commissions.
Addressing a press conference here, Gohil alleged that donations exceeding Rs 10,000 crore had been routed through such parties, with commissions ranging between 2% and 15% being retained before the balance was allegedly returned in cash.
He said provisions of the Income Tax Act, including Sections 80GGB and 80GGC, provide tax benefits for eligible political contributions, but alleged that these provisions were being exploited through bogus donations to evade tax.
Gohil also questioned the failure to initiate what he described as stringent penalties and criminal prosecution in cases where tax authorities and tribunals had detected such violations. Referring to Sections 276C(1) and 277 of the Income Tax Act, he said the law provides for prosecution in cases involving deliberate tax evasion and false statements.
The Congress leader also questioned the role of the Election Commission, alleging that its 2014 guidelines on transparency and accountability in political funding, including disclosure of donations and expenditure and sharing of information with the Income Tax Department, had not been adequately enforced.
The Congress demanded a JPC investigation, 200% penalties against bogus donors, criminal cases against chartered accountants and those operating such parties, and public disclosure of donors and companies allegedly involved in the racket.
Gohil further sought details of persons linked to such parties who had subsequently joined the BJP and were serving as its office-bearers.
Accusing the BJP-led government of adopting a “dual approach” to black money, Gohil said the government had remained silent on the alleged racket while claiming to act against illicit wealth.
