Election Commission Scrutinizes SVPP Among 200 Parties For Possible Tax Evasion

In 2022, the Election Commission took a closer look at 200 political parties, including the Sardar Vallabhbhai Patel Party (SVPP), for possible tax evasion. The SVPP, named after the respected Indian leader Sardar Vallabhbhai Patel, has raised eyebrows due to its involvement in elections despite a dubious history. A report by the Times of India highlighted that three SVPP candidates were running in the Lok Sabha elections from Mumbai, despite the party not being widely recognized.

These parties, including SVPP, are accused of misusing donations. They allegedly take large sums of money through banks, keep a portion for themselves, and give the rest back in cash. A raid by the Income Tax Department in 2022 uncovered that SVPP received Rs. 55.5 crore in donations without any significant political activity. This finding was reported to the Election Commission by the Income Tax Department.

The election affidavits of three SVPP candidates in Mumbai showed they declared no income, owned no vehicles, and two did not have houses. In an interesting turn of events, Kamlesh Vyas, one of the candidates, lives in Borivali Housing Society where even his wife was unaware of his candidacy. Despite attempts to contact him about the party's financial matters, Vyas remained elusive.

Similarly, candidates Mahesh Sawant and Bhawani Chaudhari are also contesting elections in Mumbai for SVPP. The party's headquarters is surprisingly located within a photocopy center in a chawl in Borivali East, Mumbai. Dashrath Parikh, the founder of SVPP, defended their fundraising methods by mentioning their aim to increase vote share and fulfill legal requirements through electoral bonds.

Despite controversies surrounding its finances, SVPP reported spending Rs. 55.5 crore on various social activities in 2022. According to their claims, this included expenditures on education, food distribution, winter clothing, and aid for the poor. However, sources from the Income Tax Department suggest that many such parties may be working with hawala operators to evade taxes.