Under clouds of ECI Functioning, Naroda-Based ‘Ghost’ Political Party Booked In ₹519 crore Hawala scam
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Summarized by AI; it may make mistakes. Check important info
Ahmedabad’s ‘Swatantrata Abhivyakti Party’ has come under the scanner in a CID Crime case alleging a ₹519-crore bogus donation and hawala operation, with investigators alleging that the party was used to facilitate tax evasion of ₹155 crore.
The case comes at a time when the Election Commission of India is facing public scrutiny over reported differences between the Chief Election Commissioner and two Election Commissioners on electoral-roll revision and other decisions.
The ECI has rejected reports of an internal rift, saying final decisions, including those concerning the Special Intensive Revision, were unanimous.
Tax Evasion Allegations
According to the complaint filed by an Income Tax official, the party's registered address was a shop in Ahmedabad's Saijpur Bogha area. Investigators allegedly found no functioning party office, staff or political activity at the location.
The complaint alleges that the party was created on paper to receive large donations, provide donors 100% deduction under Section 80GGC and subsequently route the funds through a shell entity before returning cash to donors after deducting an alleged 8–9% commission.
CID Crime is investigating the alleged network, including the party's national president, a tax consultant and a chartered accountant.
No Physical Presence
The party's website currently lists the same Naroda address as its contact address and identifies Surendar P Tiwari as its national president, however, no party office was found at the said address.
According to the complaint, the party allegedly received donations from taxpayers through banking channels, enabling them to claim deductions under Section 80GGC.
The money was then allegedly transferred to a shell entity called Jay Trading Company, withdrawn in cash and returned to donors after an alleged commission of 8–9%.
In a similar case, Indian tax officials uncovered a ₹204.76-crore political donation and cash-back scheme involving one Garib Kalyan Party, two front companies, and three CAs. Taxpayers claimed fraudulent benefits under Section 80GGC, with funds routed through fake transactions before being returned in cash, costing the exchequer ₹62 crore. An Ahmedabad IT officer filed the complaint, triggering a wider investigation into the complex network.
