Six registered but unrecognised political parties, all headquartered in Gujarat, received more than Rs 1,500 crore in donations in 2022-23, exceeding the combined donations received by all national parties except the BJP, according to an investigation by BBC Hindi.
The six parties — Satyavadi Rakshak Party, Aam Janmat Party, Gareeb Kalyan Party, Swatantrata Avivyakti Party, Bharatiya National Janata Dal and New India United Party — are headquartered in Gujarat, five in Ahmedabad and one in Anand.
The BBC investigation by Shubhangi Mishra found that all six parties had fielded a combined 15 candidates in the 2024 Lok Sabha elections, despite receiving donations ranging from Rs 138 crore to Rs 620 crore in 2022-23.
The Aam Janmat Party was the biggest recipient, receiving Rs 620 crore, while the Gareeb Kalyan Party received the least among the six, at Rs 138 crore. The Satyavadi Rakshak Party received Rs 330 crore and the New India United Party Rs 200 crore.
The law allows registered political parties to receive donations, with contributions eligible for tax exemptions for both donors and political parties. The BBC investigation does not allege any illegality in the donations. It does, however, report that the income tax department has examined some of the contributions and recovered part of the money as tax from some donors.
Chartered accountants told the BBC that one possible mechanism involves donors obtaining donation certificates to claim income-tax relief and subsequently receiving much of the money back from the political parties after deductions described as ‘service charges’.
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