New Delhi: The Congress on Wednesday alleged that more than Rs 10,000 crore in black money has been generated through registered unrecognised political parties (RUPPs), accusing the BJP and its associates of using these entities as vehicles for large-scale income-tax evasion.
Addressing a press conference, senior Congress leader and former MP Shaktisinh Gohil said around 3,260 RUPPs were being used as a mechanism through which individuals and companies claimed tax deductions on donations to political parties, after which a portion of the money was returned to donors in cash after commissions of 2–15 per cent were deducted.
“More than Rs 10,000 crore of black money has been generated through these fake political parties and there has been an open loot of tax revenue,” Gohil alleged.
He pointed to Sections 80GGC and 80GGB of the Income Tax Act, under which donations to political parties qualify for tax benefits. Taxpayers with income above Rs 5 crore face an effective tax burden of over 42 per cent after surcharge and cess, making such arrangements attractive for evasion, he said.
Gohil claimed tax authorities and tribunals had already detected instances of fraud, yet neither the 200 per cent penalty nor criminal prosecution under Sections 276C(1) and 277 of the Income Tax Act — which provide for imprisonment of up to seven years — had been pursued in the cases he cited. “If deliberate false entries are made for tax evasion, the law provides for stringent penalties and prosecution,” he said.
He also questioned the Election Commission of India, noting that its 2014 guidelines on transparency in political funding required parties to disclose donations and expenditure and share information with the Income Tax Department. Those requirements, he alleged, had not been adequately enforced.
Gohil demanded action against those who created and operated such parties and accused the government of a dual approach on black money. “Modi ji remains silent on black money while the country is being run on what we call fake GDP figures,” he said.
The Congress has called for a Joint Parliamentary Committee probe, imposition of the 200 per cent penalty, and criminal cases against chartered accountants allegedly involved, including revocation of their licences if found guilty.
The allegations come against the backdrop of earlier Income Tax Department actions. In 2025 the department flagged thousands of crores in suspicious deductions linked to RUPPs and certain charitable institutions, conducted searches, and prompted thousands of taxpayers to withdraw ineligible claims. The Election Commission has also delisted hundreds of inactive or non-compliant RUPPs.
The BJP and the government have not immediately responded to Wednesday’s charges. The issue is expected to sharpen the Opposition’s attack on political funding and tax enforcement ahead of forthcoming electoral contests.
