₹1,870 crore. That is the scale of an alleged political donation racket in Gujarat that, according to an Income Tax Department complaint cited in The Indian Express, caused an estimated loss of more than ₹560 crore to the exchequer.
Three Registered Unrecognised Political Parties (RUPPs) have been named in FIRs registered by the Gujarat Police. The investigation alleges that political donations were rerouted through intermediary companies, with donors receiving most of their money back in cash after commissions were deducted.
So how did the alleged racket work? And what does it reveal about the larger question of political funding in India?
In this video, Sayoni Aiyar examines the Gujarat investigation, the misuse of tax deductions available for political contributions, corporate donations through electoral trusts, and the enormous sums political parties can deploy during elections.
The video also looks at the wider transparency questions surrounding political funding after the Supreme Court struck down the Electoral Bonds scheme in 2024.
This video is based on reporting and documents cited by The Indian Express. Allegations mentioned in the Gujarat cases remain subject to investigation and legal proceedings.

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