Rs 1,100 Crore In 'Donations': Cops Bust Gujarat Party's Tax-Evasion Racket

A major investigation has uncovered a massive financial racket operating behind the shield of political donations, prompting law enforcement authorities to register a criminal case in Gujarat's Gandhinagar.

The action follows an official complaint filed by Dr Rajendra Raj, Deputy Commissioner of Income Tax (Unit 2-1, Ahmedabad), detailing a systematic tax evasion and money laundering scheme. The criminal complaint targets the registered unrecognised political party, Bharatiya National Janata Dal (BNJD), operating from Sector 11 in Gandhinagar, along with several of its top office-bearers.

According to official investigative findings, the Bharatiya National Janata Dal collected more than Rs 1,143 crore in fake political donations from over 56,000 taxpayers between the financial years 2019-20 and 2024-25. Taxpayers were recruited into the scheme to transfer funds via official banking channels like RTGS into the party's accounts. In return, the party issued bogus donation receipts, enabling these donors to claim 100 per cent tax deductions under statutory provisions of the Income Tax Act.  

By filing false accounting records and submitting fraudulent contribution reports in Form 24A to the Election Commission of India, the accused manipulated legal provisions to siphon off public funds. Authorities estimate that the scam caused a direct income tax loss of approximately Rs 343 crore to the national exchequer. Law enforcement agencies have registered formal criminal charges covering cheating, criminal conspiracy, and forgery against the party and the named individuals.

The money received in the party's accounts was subsequently funnelled into bank accounts belonging to various front entities and trading firms, such as J Trading, Kajal Enterprises, and Parmar Associates. To justify these massive fund transfers, the conspirators generated fake purchase invoices claiming payments for food grains, pulses, and other essential commodities.  

Once the funds were deposited into these front business accounts, the cash was withdrawn in full. The organisers deducted a predetermined commission fee ranging between 2 per cent and 10 per cent, while the remaining bulk cash was routed back to the original donors through informal Angadiya networks and hawala channels.  

The complaint names party president Surendrakumar Vitthalbhai Gajera as the central mastermind and lynchpin of the entire syndicate. Investigators allege that Gajera directly oversaw the operation, fixed commission rates, and managed the network of dummy firms used to channel cash back to taxpayers.  

General secretary Vipul Solanki allegedly worked closely with the party president to coordinate donor details over messaging platforms, issuing signed bogus donation receipts. Preliminary questioning revealed that the party carried out no actual political activities, maintaining only a superficial social media presence to project the appearance of a functioning political entity.  

Crucial physical evidence was recovered during search operations at the residence of party treasurer Ronaksinh Chavda, where officers seized transaction receipts and digital communication logs. The records documented detailed chats with middlemen confirming the transfer of funds through Angadiya channels after deducting fixed commissions.  

The investigation also implicated chartered accountant and auditor Adil Syed. He is accused of preparing and digitally signing false audit reports for financial gain without visiting the party office or inspecting any genuine transaction records. Statements recorded during the probe indicate that income and expenditure statements submitted by the party were entirely fabricated to facilitate the commission-earning business.