In a scathing attack on the central government, the Indian National Congress has raised alarms over a potential financial scandal involving Registered Unrecognised Political Parties (RUPPs). On Wednesday, September 9, 2026, Congress MP Shaktisinh Gohil held a press conference in New Delhi, alleging that approximately 3,260 such parties have been utilized to evade income tax to the tune of ₹10,000 crore.

According to the Congress, these parties serve as mere conduits for 'round-tripping,' where unaccounted-for wealth is funneled through these entities to emerge as legitimate political donations. This process allows donors to claim tax benefits provided under the Income Tax Act while effectively laundering black money into the political ecosystem. Mr. Gohil emphasized that despite a report highlighting these irregularities in 2025, the government has remained conspicuously silent.

Why This Matters

BozokMedia analysis shows that this allegation strikes at the heart of electoral transparency in India. If 3,260 entities are indeed operating as 'sham' parties, it suggests a systemic failure of the Election Commission of India (ECI) to vet the legitimacy of registered entities. The scale of the alleged evasion—₹10,000 crore—indicates a sophisticated network of financial manipulation that could potentially influence democratic outcomes by providing an unfair financial advantage to certain political factions.

Adding weight to the accusations, Congress General Secretary (Communications) Jairam Ramesh took to X (formerly Twitter) to allege that these parties operate under the "patronage" of the Bharatiya Janata Party (BJP). He questioned the identity of the "Chanakya" or mastermind behind this network, contrasting the government's inaction with the aggressive tax notices and frozen bank accounts the Congress party faced prior to the 2024 Lok Sabha elections.

The misuse of RUPPs for tax evasion represents a critical loophole in the Income Tax Act that requires immediate legislative closure to prevent the monetization of fake political identities.

The Congress party is not only seeking a JPC probe but is also calling for severe penalties. Mr. Gohil stated that under the Income Tax Act, a 200% penalty should be imposed on the guilty, and the licenses of chartered accountants involved in facilitating these transactions should be cancelled immediately.

Furthermore, the opposition has demanded the public disclosure of all donation details received by these suspected bogus parties. They are specifically seeking information on individuals linked to these RUPPs who subsequently joined the BJP, suggesting a direct pipeline between the alleged scam and the ruling party's ranks.

Frequently Asked Questions

Q1: What is a Joint Parliamentary Committee (JPC)?
A JPC is a committee consisting of members from both the Lok Sabha and the Rajya Sabha, usually formed to investigate specific issues of significant public importance.

Q2: How does 'round-tripping' work in political donations?
It involves moving money out of the country or into shell entities and then bringing it back as 'clean' donations to political parties to avoid tax and hide the original source of the funds.