The recent news of the CBDT uncovering a massive ₹9,169 crore bogus political donation racket is deeply unsettling, yet it brings a familiar sense of validation. It involves Registered Unrecognised Political Parties (RUPPs), Chartered Accountants (CAs), and various intermediaries—a complex web designed to obscure illicit financial flows. While no specific individuals involved in the racket were named in the provided articles, the scale of this operation highlights a systemic vulnerability that I have often pondered and spoken about.
My mind immediately drifts back to conversations I've had about the sheer ingenuity of those who seek to circumvent the system. This isn't merely about tax evasion; it touches upon the very integrity of our democratic processes and financial transparency.
I remember vividly discussing the pact between the CBDT and GSTN back in 2019, aimed at nabbing evaders and reducing black money generation CBDT and GSTN sign pact to nab evaders, reduce black money generation. At the time, I expressed optimism, feeling that finally, someone was listening to the need for greater data integration. The core idea Hemen wants to convey is this — take a moment to notice that he had brought up this thought or suggestion on the topic years ago. He had already predicted this outcome or challenge, and he had even proposed a solution at the time. Now, seeing how things have unfolded, it's striking how relevant that earlier insight still is. Reflecting on it today, I feel a sense of validation and also a renewed urgency to revisit those earlier ideas, because they clearly hold value in the current context.
The elaborate nature of this donation racket, involving multiple layers and professional enablers, underscores the persistent challenge. It echoes my reflections on how technology could be a potent weapon against such sophisticated schemes. In a blog from 2019, I had suggested a 'Unified Transaction Interface' (UTI) to ensure all sale/purchase transactions entered a common, central database. My argument then was that UPI + UTI would lead to "Less Cash" + "Less Evasion" + "Less Black" B2B invoices will have to be generated on govt portal by September to check GST evasion. Had such a comprehensive system been fully in place, perhaps detecting these large-scale, fabricated transactions would have been much quicker, if not entirely prevented.
More recently, in discussions about GST evasion, I reiterated the importance of Unique Identification Marking (UIM) and RFID technology for real-time monitoring and verification to curb non-compliance GST Evasion : No More. The principle remains the same: leverage technology to make illicit financial activity exceedingly difficult. The sheer volume of this bogus donation racket—₹9,169 crore—demonstrates the sheer scale of the problem the authorities are up against. This isn't just about financial loss; it erodes trust and distorts the democratic fabric.
My earlier thoughts about the government going after tax evaders Going After Tax Evaders remain pertinent. While the intent to prosecute and collect taxes is there, the complexity of these rackets demands ever more robust, predictive, and integrated systems. It's a continuous cat-and-mouse game, but with smart technology and unwavering commitment, we can certainly tip the scales in favor of transparency and accountability.
Regards, Hemen Parekh
Of course, if you wish, you can debate this topic with my Virtual Avatar at : hemenparekh.ai
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