The Congress has demanded a Joint Parliamentary Committee (JPC) investigation into what it described as a major “donation scam” involving Registered Unrecognised Political Parties (RUPPs). The party alleged that 3,260 RUPPs received political donations involving around ₹10,000 crore and that the transactions may have resulted in tax evasion.
The allegations were raised by Congress leaders Jairam Ramesh and Shaktisinh Gohil on September 9. Gohil called for an investigation into the political parties as well as the donors associated with them. The claims concern transactions and donations that the Congress says warrant closer examination by investigating authorities.
Congress Alleges Round-Tripping of Funds
According to the Congress, some RUPPs may have been used as channels for converting unaccounted money into apparently legitimate political contributions.
Gohil alleged that money could have been moved through mechanisms such as round-tripping before being presented as political donations. He also questioned why the government had not taken stronger action despite concerns about RUPP finances being raised earlier.
The Congress has therefore sought a broader probe covering both the parties receiving the funds and the individuals or entities making the donations.
What Are Registered Unrecognised Political Parties?
RUPPs are political parties that are registered with the Election Commission but are not recognised as State or national parties. Their financial activities and donation disclosures can come under scrutiny under India's electoral and tax framework.
An Association for Democratic Reforms (ADR) analysis has previously reported that more than 3,260 RUPPs collectively received over ₹10,000 crore between 2022 and 2024. However, the existence of these donations by itself does not establish that the entire amount involved tax evasion.
That distinction is important because the current Congress allegations require investigation and verification before conclusions can be drawn about individual parties, donors or transactions.
Congress Calls for Parliamentary Investigation
The Congress has argued that the scale of the alleged transactions justifies a JPC investigation. The proposed inquiry would examine how donations were received, the financial trail associated with them and whether applicable tax and electoral rules were followed.
The controversy also puts greater attention on transparency in political funding and the need for proper documentation of donations and financial transactions.
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What Happens Next?
The allegations are now likely to add to the wider political debate over political funding, RUPP registrations and financial transparency. Any determination of tax evasion or illegal transactions would ultimately require examination by the competent authorities and evidence-based investigation.
For now, the ₹10,000 crore tax-evasion figure should be understood as an allegation made by the Congress, rather than a final finding by a tax or investigative authority.