From Our Bureau
NEW DELHI: The Income Tax Department on Wednesday mounted raids in at least seven states as part of a pan-Indi tax evasion probe against the registered but unrecognised political parties to unearth their dubious financial transactions.
The states where the raids were conducted include Maharashtra, Gujarat, Madhya Pradesh, Uttar Pradesh, Chhattisgarh, Haryana and Delhi.
Sources said the department has launched a coordinated action against the political parties and their promoters to probe source of their income and expenditure. They said some other instances of political funding through illegal means are also being probed.
The surprise action is understood to have been taken by the department on a recent recommendation of the Election Commission (EC) which struck off at least 198 entities from its list recently after they were found non-existent during physical verification.
The poll panel had announced that it was taking action against more than 2,100 entities, categorised as registered but unrecognised political parties, for flouting rules and election laws, including those related to filing of monetary contributions, failing to update their address and names of office bearers. It had said some of these parties were indulging in “serious” financial impropriety.
According to the poll panel, it acted after chief electoral officers (CEOs) of states reported that these parties either were “non-existent” on verification or the letters issued by authorities to verify their addresses and communication details had been returned as undelivered by the department of posts.
Subsequently, the EC decided to withdraw various benefits accorded to these parties under the Symbols Order (1968), including allocation of common election symbol. In a statement issued in June, the poll panel had said any RUPP aggrieved by the decision can approach the CEO concerned within 30 days along with all evidence of existence, year-wise annual audited accounts, contribution report, expenditure report and updated list of office-bearers.
Sources in the poll panel had said there were specific details of various such parties, available publicly, that have flouted laws and rules on disclosure of funds and donations.
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The EC had later also sent a reference to the Department of Revenue, under the Union finance ministry, for necessary legal and criminal action against three such parties involved in serious financial impropriety.
The Department of Revenue subsequently sent this report to the Central Board of Direct Taxes (CBDT), the administrative body of the tax department. Various I-T department probe wings are undertaking the action on Wednesday.
According to official data, there are nearly 2,800 registered unrecognised political parties in India. The poll panel had been pushing the government to allow it to de-register political parties.
