The Income Tax Department on Wednesday conducted a pan-India search operation in connection with tax evasion and dubious financial transactions by around 20 registered unrecognised political parties (RUPP) and launched a survey operation against Delhi-based public policy think tank Centre for Policy Research (CPR) and global NGO Oxfam India.
The survey also covered Bengaluru-based Independent and Public-Spirited Media Foundation (IPSMF), which funds several media organisations. The I-T department also carried out a search operation against a Rajasthan Minister, sources said.
Sources said the I-T officials visited the offices of the CPR, Oxfam and IPSMF and inspected the book of accounts and financial transactions as part of the probe related to alleged contravention of the Foreign Contribution Regulation Act (FCRA).
Meanwhile, as part of a pan-India tax evasion probe against RUPPs, at least 110 locations in Gujarat, Delhi, Uttar Pradesh, Maharashtra, Madhya Pradesh, Chhattisgarh, Haryana and some other States were searched, officials said.
The search teams of the I-T department were assisted by the local police. A tax department team was seen at an office of a lawyer in the Mayur Vihar area, as part of this operation.
Meanwhile, Rajasthan Minister Rajendra Yadav said the Income Tax department conducted raids on Wednesday on multiple premises belonging to him and his family.
Income Tax department sources said the searches are being conducted as part of a tax-evasion investigation. The searches are being carried out in State Capital Jaipur and at some locations in Uttarakhand.
“The Income Tax department is conducting raids on business premises and residences in Kotputli and Uttarakhand. Reasons are not known,” the Minister of State for Home said.
Yadav, the Congress MLA from Kotputli constituency, and his family are in the business of manufacturing bags for fertilisers, grains, and cement. They are also in food business such as flour and pulses.
A coordinated action has been launched by the department against certain RUPPs, their promoters and linked entities to probe the source of their income and expenditure, the sources said.
Some other instances of political funding through alleged illegal means are also being investigated as part of the action, they said.
The surprise action by the tax department follows a recent recommendation of the Election Commission (EC) which recently struck off at least 198 entities from its list of RUPP after they were found non-existent during physical verification.
The EC had announced that it was taking action against more than 2,100 entities, categorised as RUPP by it, 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 RUPP 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.
There were specific details of various such parties, available publicly, that have flouted laws and rules on disclosure of funds and donations, sources in the poll panel had said.
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 Income Tax Department.
Various I-T department probe wings were part of the nationwide action on Wednesday.
There are nearly 2,800 registered unrecognised political parties in India, according to official data.
The EC had been pushing the Government to allow it to de-register political parties.