Rs 843.97 Crore Bogus Political Party Donation Racket Unearthed in Gujarat, Income Tax Dept Files Complaint With CID (Crime):

In connection with the Rs 843.97 crore bogus political party donation racket, the Income Tax Department has filed a complaint with the Crime Investigation Department (CID) against eight accused in Gujarat. These accused are alleged to have caused a loss of over Rs 250 crore to the government exchequer.

According to the complaint registered, the New Naroda-based Aam Janmat Party, registered in New Naroda, Gujarat, was alleged to have operated only on paper. The party had allegedly issued fake donation receipts and maintained bogus financial records in order to claim fraudulent tax deductions seamlessly.

The complaint was filed against the party, its national president, treasurer, a chartered accountant, financial transfer managers and auditors. In the racket, the accused party was alleged to have routed funds through bank accounts and shell companies. Thereafter, they used to withdraw the fund in cash and return the amount to its initial contributor after deduction of commissions.

As per the complaint filed, the accused political party had prepared fake contribution reports and balance sheets and signed them digitally before their upload on the Income Tax Portal.