The Institute of Chartered Accountants of India (ICAI) has commenced disciplinary proceedings against around 15 chartered accountants (CAs) from Ahmedabad, Gujrat, who are implicated in a scheme involving fraudulent donations to Registered Unrecognised Political Parties (RUPPs).
Citing sources, The Times of India reported that this action follows complaints filed by the income tax (I-T) department in Ahmedabad, which uncovered a pattern where donors reportedly issued cheques to RUPPs and subsequently received cash in return, after deducting a commission for the parties involved.
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Sources indicate that during the I-T investigation, several CAs admitted to facilitating the transactions.
The hearings by the ICAI began in July 2025, with most of the accused contesting the allegations, despite earlier admissions made to I-T authorities, according to the news agency.
The Board of Discipline is currently assessing evidence from both sides, with the next session planned for September 2025.
A decision is expected by the conclusion of the financial year, as per insider information.
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By GlobalDataThe I-T department’s investigation into RUPPs highlighted that numerous taxpayers in Gujarat had claimed deductions under Section 80 GGC of the Income Tax Act for contributions to political entities.
However, investigations revealed that many RUPPs returned the donated funds in cash after taking a commission, allowing ‘donors’ to claim tax benefits on amounts that they did not actually contribute.
The ICAI has stated its dedication to enforcing its Code of Ethics and has a structured disciplinary process under the Chartered Accountants Act, 1949, to address cases of professional misconduct among its members.
