Addressing a press conference in New Delhi, Congress MP Shaktisinh Gohil alleged that the parties were being used as a route to convert unaccounted-for money into legitimate political donations by way of round-tripping and other means. He also accused the government of failing to act, though the issue was raised in a report in 2025.
Party general secretary (communications) Jairam Ramesh later alleged that the 3,260 parties were operating under the “patronage” of the BJP. “Who is the ‘Chanakya’ behind these 3,260 sham political parties, and who is the true mastermind of this scam?” Mr. Ramesh asked in a post on X.
The Congress said the Income Tax Act provides tax benefits on donations to registered political parties. These provisions were being misused through the RUPPs, it said.
Mr. Gohil said the government should investigate the parties and the people who donated to them. Under the Income Tax Act, a penalty of 200% can be imposed on those found guilty, and criminal proceedings can be initiated against individuals and chartered accountants involved in wrongdoing, he said.
He also demanded that the licences of chartered accountants found guilty be cancelled and that criminal cases be filed against those running the alleged bogus political parties.
Public disclosure
The Congress further sought public disclosure of details of donations received by bogus political parties, as well as information on those people linked to the parties who later joined the BJP.Mr. Gohil alleged that no action had been taken against even one person despite the alleged tax evasion exceeding ₹10,000 crore. “Officials had recommended action against those involved, but orders had not come from the “top”, he added
He also questioned the Election Commission’s role in scrutinising the funding and expenditure of political parties, alleging that the poll panel had failed to ensure transparency. “We demand that the entire matter be examined by a JPC,” Mr. Gohil said.