CID Crime has registered a case against seven people in Ahmedabad over an alleged ₹843 crore tax deduction racket operated through the Aam Janmat Party, with a preliminary estimate that the scheme caused more than ₹250 crore in losses to the government treasury.
The case was registered on Thursday on the basis of a complaint by an Assistant Commissioner of the Income Tax Department. The accused include Aam Janmat Party national president Gaurav Mishra, treasurer Dharmendra Vaishnav, accountant Mayursingh Rathod, intermediary Dineshkumar Jain and chartered accountants Pranav Shah and Akash Soni, among others.
According to details cited in the First Information Report, the political party was allegedly used as a front to route funds through its bank accounts and other transactions. A specified percentage was reportedly deducted as commission before the original donors were given the money back in cash.
Investigators allege that the donations were not withdrawn directly from the party’s accounts. Instead, the funds were transferred through firms identified as Prinit Corporation, Hashaz Corporation, Ayan Enterprises and Shri Ramdev Enterprises. The money was then allegedly moved through banking channels and withdrawn in cash.
The alleged transactions relate to claims made by donors under provisions of the Income Tax Act for the financial years 2022-23 and 2023-24. Investigators have estimated that bogus tax deduction claims may have resulted in a loss of more than ₹250 crore to the public exchequer. The figure is preliminary and may change as the investigation progresses.
The FIR alleges that the party did not conduct substantive political activity and was instead used to create financial records. Investigators have alleged that expenses were recorded under heads such as election campaigning and public rallies without supporting bills or vouchers.
The case also brings the role of professional intermediaries and auditors under scrutiny. The investigating agency has alleged that chartered accountants handling the audit work certified fabricated tax returns, helping the transactions appear legitimate. The exact role of each accused is now being examined.
The alleged arrangement highlights how political-party accounts, donation records, tax claims and intermediary firms can become interconnected in a financial investigation. The FIR’s account suggests that the inquiry will examine the movement of funds across party accounts and private entities, the identity of donors, the basis of the tax deduction claims and the process through which the returns were certified.
CID Crime has begun collecting evidence against all the accused. The agency is also investigating the alleged cash withdrawals and the involvement of commission agents and intermediaries. No finding of guilt has been established against the accused, and the allegations will be tested through the legal process. The investigation is expected to determine the full scale of the alleged racket and the individual responsibilities of those named in the case.
