Gujaratis have traditionally bewhiskered known to be smart with their money related decisions. Now a major investigation had revealed that Gujaratis have been saving taxes and a few spurious political parties have been involved in sophisticated money laundering schemes.
What looks like a political donation on paper allegedly turned into a cycle of bank transfers, tax deductions, dummy firms and cash returns.
At the centre of one such investigation is the Bharatiya National Janata Dal (BNJD), a registered unrecognised political party based in Gandhinagar. The Income Tax Department has alleged that the party received more than ₹1,143.85 crore from 56,238 donors between financial years 2019-20 and 2024-25. The department estimates that the alleged transactions resulted in around ₹343 crore in tax loss.
The case was registered following a complaint by Dr Rajendra Raj Jehra Ram, Deputy Commissioner of Income Tax, Unit 2(1), Ahmedabad. The complaint names BNJD and four of its office-bearers — president Surendrakumar Vitthalbhai Gajera, general secretary Vipul Solanki, treasurer Ronaksinh Chavda and chartered accountant-auditor Adil Syed. The allegations include tax evasion, cheating, criminal conspiracy, forgery and money laundering.
How the alleged money cycle worked
According to the investigation, the money did not simply move into the party’s accounts as ordinary political contributions.
Taxpayers allegedly transferred money to BNJD through banking channels such as RTGS. The party then allegedly issued donation receipts that allowed the donors to claim tax deductions on the contributions.
The Income Tax Department alleges that these were not genuine political donations. Instead, the money was allegedly moved further through other businesses and eventually returned to the original donors in cash after a commission was deducted.
The firms mentioned in the investigation include J Trading, Kajal Enterprises and Parmar Associates. Investigators allege that fake purchase bills for items such as food grains and pulses were used to show a business reason for transferring the money to these firms. The money was then allegedly withdrawn in cash.
After deducting a commission reportedly ranging between 2% and 10%, the remaining amount was allegedly sent back to the donors through Angadiya and hawala networks.
In simple terms, the allegation is that money went from the taxpayer to the political party through the banking system and then allegedly returned to the same taxpayer as cash, with the party and intermediaries earning a commission in the process.
Where the tax angle comes in
The alleged arrangement also depended on the tax benefit attached to political donations.
According to the complaint, donors were provided receipts that allowed them to claim 100% tax deductions on the contributions. The Income Tax Department has also alleged that BNJD submitted false accounting records and incorrect contribution details in Form 24A to the Election Commission of India.
Investigators estimate that the alleged arrangement caused a loss of around ₹343 crore to the exchequer.
Party president accused of running the network
The investigation has placed BNJD president Surendrakumar Vitthalbhai Gajera at the centre of the alleged operation.
According to the complaint, investigators allege that Gajera supervised the network, decided the commission rates and handled the firms allegedly used to route the money back to donors.
BNJD general secretary Vipul Solanki is also accused of playing a role in the alleged arrangement. Investigators allege that donor details were shared through messaging platforms and that Solanki prepared and issued signed donation receipts.
The investigation has also raised questions about the actual political activities of the party. Preliminary questioning reportedly indicated that the party had little or no actual political activity and maintained a limited social media presence.
Digital records and a hawala trail
The investigation did not rely only on bank transactions.
Searches also led investigators to records allegedly connected to the movement of money. At the residence of treasurer Ronaksinh Chavda, officers reportedly recovered transaction-related documents and digital communications, including material allegedly linked to intermediaries.
A hawala receipt was also reportedly recovered during the search, according to reports on the case.
These records are significant because the alleged scheme depended on moving money back outside the formal banking trail after the initial donation was recorded.
Questions around the auditor
The investigation also names Adil Syed, a chartered accountant and auditor.
He has been accused of preparing and digitally signing audit reports that investigators allege were false. The complaint reportedly says he did not visit the party office or examine genuine transaction records before preparing the documents.
Investigators have also alleged that the party’s income and expenditure statements were fabricated and used to support the transactions shown on paper.
A ₹1,143 crore trail under investigation
The scale of the alleged transactions is what makes the case significant.
₹1,143.85 crore in alleged donations.
56,238 donors mentioned in the FIR.
2019-20 to 2024-25 — the period under investigation.
₹343 crore — estimated tax loss cited by the Income Tax Department.
2% to 10% — alleged commission charged in the cash-return arrangement.
The BNJD case is also part of a wider set of FIRs involving three lesser-known Gujarat political parties. According to the Income Tax Department’s complaints, the three parties together received ₹1,869.61 crore in donations and allegedly caused a combined tax loss of about ₹560.02 crore.
For now, the allegations against BNJD and the individuals named in the complaint remain allegations. The investigation and legal proceedings will determine what can ultimately be established in court.
Also Read: Questions May Be About Gyanesh, But The Question Mark Is On Modi’s Democratic Legitimacy
