Income Tax raids underway in Mumbai over tax evasion and illicit political funding

The Income-Tax department on Thursday conducted raids in the Sion and Borivali area of Mumbai in connection with tax evasion and political funding. The raids have been going on since Wednesday in separate cases related to alleged tax evasion, violation of Foreign Contribution (Regulation) Act, 2010 and illicit funding of multiple registered unrecognised political parties (RUPP).

The raids were carried out at over 110 locations in Gujarat, Delhi, Uttar Pradesh, Maharashtra, Madhya Pradesh, Chhattisgarh, Haryana and some other states against certain RUPP and their alleged dubious financial transactions, officials said.

The surprise action is believed to have been taken by the department on a recent recommendation of the Election Commission (EC) as part of which at least 198 entities were struck off 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 the filing of monetary contributions, failing to update their address and names of office bearers. It had said some of these parties indulged in "serious" financial impropriety.