Congress alleges tax evasion of ₹10,000 crore through unregistered political parties, asks JPC

Congress leader Shaktisinh Gohil at a party briefing in New Delhi. | Photo credit: AICC via PTI

Alleging that 3,260 registered unrecognized political parties (RUPPs) received political donations and evaded income tax to the tune of ₹10,000 crore, the Congress on Wednesday (September 9, 2026) demanded a joint parliamentary committee (JPC) probe into the “donation scam”.

At a press conference in New Delhi, Congress MP Shaktisinh Gohil alleged that the parties were being used as an avenue to convert unaccounted money into legitimate political donations through round-trip and other means. He also accused the government of inaction, although the issue was raised in the 2025 report.

The party’s general secretary (communications) Jairam Ramesh later claimed that 3,260 parties were functioning under the “patronage” of the BJP. “Who is ‘Chanakya’ behind these 3,260 fake political parties and who is the real mastermind behind this scam?” asked Mr. Ramesh in a post on X.

He also compared the alleged tax evasion to the experience of the Congress ahead of the 2024 parliamentary elections, when its bank accounts were frozen and it received tax notices. “So why is there no investigation into these 3,260 bogus political parties and related tax evasion cases?” asked Mr. Ramesh.

Congress said the Income Tax Act provides tax benefits for donations to registered political parties. These provisions were abused through RUPP, he said.

Mr. Gohil said the government should investigate the parties and the people who donated to them. Under the Income Tax Act, those found guilty may be fined 200% and criminal proceedings may be initiated against individuals and chartered accountants found guilty, he said.

He also demanded that the licenses of the chartered accountants found guilty be revoked and that criminal proceedings be initiated against those running the alleged bogus political parties.

Disclosure

The Congress further sought disclosure of details of donations received by bogus political parties as well as information about people associated with the parties who later joined the BJP.

Mr. Gohil claimed that no action was taken against even a single person despite the alleged tax evasion exceeding ₹10,000 crore. “Officials recommended action against those involved, but orders did not come ‘from above,'” he added

He also questioned the Election Commission’s role in scrutinizing the funding and expenditure of political parties, claiming that the panel had failed to ensure transparency. “We demand the JPC to look into the matter,” Mr. Gohil said.

Published – 9 Sep 2026 22:12 IST