₹519 Crore Donation Scam: Political Party President Denied Bail by Ahmedabad Court

A sessions court in Ahmedabad has rejected the anticipatory bail plea of Surendra Parshotamprakash Tiwari, president of the Swatantrata Abhivyakti political party, in an alleged ₹519 crore political donation scam that prosecutors claim caused a loss of ₹155 crore to the national economy through tax evasion.

The prosecution alleges that the party was set up to help taxpayers claim income tax deductions against political donations, with the money allegedly returned to donors in cash after commissions were deducted.

Sessions Judge V.A. Dhadhal rejected Tiwari’s plea, observing that the allegations pointed to a serious economic offence and that his custodial interrogation was important to identify other people allegedly involved in the syndicate.

Court Questions Political Party’s Activities

In its order, the court noted that Tiwari and his co-accused had allegedly caused substantial damage to the country’s economy by operating an arrangement involving online donations and cash returns.

According to the allegations, the accused received donations from various individuals, deducted a commission and returned the remaining amount to the donors in cash. The arrangement allegedly allowed donors to claim a 100% deduction against their income tax liability.

The court observed that there was no indication at this stage that Tiwari had been falsely implicated. It also referred to the substantial donations credited to his bank account, which, according to the court, raised questions about the purpose behind establishing the political party.

The judge questioned why individuals would make such large donations to an organisation that appeared to have little presence on the ground and did not operate as a political party at the national level. The order also noted that even nationally recognised political parties did not necessarily receive donations of such magnitude.

The court said that alleged attempts to manipulate the country’s economy were a serious matter and that questioning Tiwari in custody was important to establish the involvement of others.

Prosecution Alleges ₹519 Crore Collected Through Donations

Opposing the anticipatory bail application, Chief Public Prosecutor Sudhir Brahmbhatt argued that Tiwari had allegedly collected money in the name of political donations and issued receipts that taxpayers could use to claim tax exemptions.

The prosecution alleged that the donated funds were transferred to the bank accounts of Tiwari’s associates before being recovered in cash through hawala channels. The accused allegedly retained a substantial commission while returning the remaining money to the donors.

According to the prosecution, this arrangement allowed taxpayers to claim tax benefits while the people operating the scheme earned commissions.

The prosecution further claimed that ₹519 crore had been collected under the political party’s banner during the financial years from 2023 to 2025, resulting in an estimated ₹155 crore loss to the government.

Court Rejects Pre-Arrest Bail

Tiwari had approached the court seeking anticipatory bail in the alleged donation and tax evasion case. The prosecution opposed his plea, arguing that custodial interrogation was necessary to investigate the alleged financial transactions and identify others involved.

After considering the allegations and the prosecution’s submissions, the court dismissed the application, holding that granting anticipatory bail was not justified at this stage.

The allegations remain subject to investigation and judicial proceedings.