Money Laundering? 6 Gujarat Parties Corner 70% of India's Unrecognised Political Funds at ₹2,692 Crore Over 5 Years

Six registered unrecognised political parties (RUPPs) based in Gujarat accumulated ₹2,692.13 crore out of the ₹3,827.37 crore total income declared by the top 15 highest-earning unrecognised parties in India between FY 2020–21 and FY 2024–25.

The figures, released by the Association for Democratic Reforms (ADR), show that Gujarat entities accounted for 70.34% of total income and 64.73% of high-value donations (above ₹20,000) nationally within this group. The disclosures coincide with criminal investigations initiated by the Gujarat CID (Crime) into three of these entities—Bharatiya National Janata Dal (BNJD), Swatantrata Abhivyakti Party (SAP), and Garib Kalyan Party (GKP)—for alleged tax fraud and money laundering.

Investigations by the Income Tax Department and Gujarat CID (Crime) reveal that Registered Unrecognised Political Parties (RUPPs) are organized financial syndicates run by entry operators rather than genuine political entities or major party fronts.

By exploiting 100% tax deductions under Sections 80GGB/80GGC and tax exemptions under Section 13A, these paper parties collect donations via banking channels, retain a 2% to 10% commission, and return the funds in cash via shell firms and hawala networks. Six Gujarat-based RUPPs cornered ₹2,692 crore (70% of national RUPP income) over five years while winning zero seats

Small State Presence Commands Monopoly Over National Cash Flows

Gujarat hosts just 80 of the 2,074 registered unrecognised political parties across India, representing under 4% of the country's total RUPP count. However, state filings consistently dwarf the rest of the nation.

In the single financial year 2024–25, 29 Gujarat-based parties reported ₹510.42 crore out of ₹1,118.49 crore declared by 734 reporting parties nationwide—capturing 45.63% of the single-year national total.

By comparison, Delhi's 73 reporting parties declared ₹218.48 crore, while Uttar Pradesh—which leads the country with 530 registered unrecognised political parties—reported just ₹25.64 crore across 226 parties.

Financial Breakdown of Top 6 Gujarat Parties (FY 2020–21 to FY 2024–25)

The following comparative table details the 5-year cumulative income, expenditure, and electoral outcomes for all six Gujarat-registered RUPPs documented in the ADR audit report:

Booked Entities Drive Bulk of Multicrore Financial Filings

The ADR documentation explicitly details the accounts of the three Gujarat entities currently booked under the Bharatiya Nyaya Sanhita following complaints lodged by the Income Tax Department:

• Bharatiya National Janata Dal (BNJD): The ADR audit places BNJD as the highest earner nationally among all RUPPs over five years, recording ₹1,156.07 crore in cumulative income. The party declared ₹198.84 crore in FY 2024–25 alone.

• Swatantrata Abhivyakti Party (SAP): Disclosures filed by SAP detail ₹892.28 crore in high-value donations over the five-year period, including ₹228.81 crore reported in FY 2024–25 for contributions exceeding ₹20,000.

• Garib Kalyan Party (GKP): Registered in January 2024, GKP declared ₹210.81 crore over two financial years, with ₹170.04 crore collected in FY 2024–25.

These three booked entities combined accounted for ₹2,259.16 crore in total financial declarations recorded in the ADR dataset.

Complete Expenditure Rates Yield Zero Electoral Seats

Despite logging near-total annual expenditure rates, the six dominant Gujarat parties yielded virtually no electoral success. Across the five-year window, the six entities declared total spending of ₹2,680.12 crore against ₹2,692.13 crore in income. However, across all Lok Sabha and state assembly contests fought between 2019 and 2026, their candidates polled negligible vote shares and repeatedly lost their election deposits.

Audit reports analyzed by ADR show that spending was systematically booked under vague umbrella heads. BNJD allocated ₹1,153.58 crore (99.8% of its total outlay) under "Main Objects/Other Charitable Objects".

Similarly, Satyawadi Rakshak Party attributed ₹376.55 crore to "Lok Kalyan" (Public Welfare), while New India United Party logged ₹379.67 crore under "Public/Social Welfare Expenses".