Income tax returns show BSP coffers overflowing

NEW DELHI: How much does a 3,000-square metre property at New Delhi’s upmarket Sardar Patel Marg cost? If the income-tax returns of Ms Mayawati’s BSP are anything to go by, this is just worth Rs 9.97 crore. That’s not all. A year before recession set in 2008, BSP sold a flat in Lucknow at a loss of close to Rs 2 lakh.

Net worth of the property on Sardar Patel Marg, ‘generously gifted’ to BSP in 2007-08 financial year, has grown leaps and bounds in three years. Correlating the income-tax returns and Ms Mayawati’s recent asset declaration, the property is now worth Rs 54.08 crore — a 442% increase. Apart from this prime property, BSP received another gift in Lucknow — 5 Lal Bahadur Shastri Marg, which was worth Rs 2.36 crore.

The income-tax returns of political parties, accessed by Association for Democratic Reforms under Right to Information (RTI) Act, reveal that BSP’s coffers are overflowing. The declared income has risen from Rs 69.74 crore in 2006-07 fiscal to Rs 182.02 crore in 2007-08 — a 161% increase and the highest across the political spectrum.
What is intriguing is the way the income-tax returns of BSP has been filed.

While the returns for 2006-07 has no details on immovable assets or expense on party activities, its 2007-08 returns is quite candid about advance deposits to CBI (worth Rs 5 lakh), construction expense of Rs 48.30 lakh on S P Marg property, gifts of two properties, loss in sale of a property in Lucknow and a sharp increase of 93.5% in liquid cash.

The only income shown in both years is either through interest on money deposited in banks or through voluntary contributions. There is a massive increase in the fortunes of the party, especially in contributions from Rs 45.05 crore to Rs 68 crore — a 51% rise.

BSP is not the only party which has been unwilling to part with too many details in the income-tax returns. Since there is no specific format under law for political parties to declare income, they have various heads like voluntary contributions, donations, party funds and education funds where they show their income. Even expense heads are different. While Congress has shown election expense over the two financial years, BJP has not.

ADR’s national coordinator Anil Bairwal says: “There is no uniformity in I-T returns filed by political parties despite recommendations to this effect by the Election Commission and Law Commission. The need of the hour is a legislation which calls for financial transparency and auditing of accounts of all political parties.”

Though national parties have never openly resisted such a legislation, they have not been very forthcoming either. Congress spokesperson Manish Tewari said: “There is a need for larger reforms of electoral financing. It is time that all political parties put their wisdom together to discuss this issue in greater detail.” This has been the opinion despite EC’s clear directive on voluntary disclosure of accounts for the public.