15 CAs under ICAI lens for facilitating bogus donations to RUPPs

Ahmedabad, Aug 11, 2025

The Institute of Chartered Accountants of India's (ICAI) Board of Discipline has begun hearing cases against 15-odd Ahmedabad-based chartered accountants (CAs) accused of facilitating fake donations to Registered Unrecognised Political Parties (RUPPs).

According to sources, the income tax (I-T) department in Ahmedabad lodged complaints against the CAs after an investigation revealed that donors allegedly routed money to RUPPs through cheques and later received cash back, minus a commission paid to the parties. During the I-T inquiry, several CAs reportedly admitted to helping facilitate such transactions, said sources.

The ICAI's disciplinary hearings began in July in Ahmedabad, with most of the accused denying the allegations, contradictory to their reported admission before the I-T officials. The Board is currently examining evidence from both sides, and the next hearing is expected in Sep. A verdict could be delivered by the end of this financial year, said sources.

"If found guilty, the CAs may face suspension from the ICAI's register of members for a certain period, monetary penalties, or both," a source said.

The I-T department's probe into RUPPs found that thousands of taxpayers in Gujarat had claimed deductions under Section 80 GGC of the Income Tax Act for donations to political parties. However, searches revealed that many RUPPs returned the donated amounts in cash after deducting commissions, enabling ‘donors' to claim tax benefits on amounts they never truly donated.

The ICAI said it remains committed to upholding its Code of Ethics and has a defined disciplinary mechanism under the Chartered Accountants Act, 1949, to take action against members found guilty of professional misconduct.

[The Times of India]