New Delhi, Nov 24: The Supreme Court on Monday issued notices to the Union government, the Election Commission of India, the Central Board of Direct Taxes, and a dozen political parties on a petition questioning the legality of cash donations received by political parties.
The petition, filed by Khem Singh Bhati, challenges Section 13A(d) of the Income Tax Act, which currently allows political parties to accept cash contributions of up to ₹2,000 without disclosing the identity of the donor. Bhati argues that this provision shields the financial trail of political funding and undermines transparency.
A bench of Justices Vikram Nath and Sandeep Mehta sought responses from all parties, observing that the issue raises important questions about electoral integrity and the accountability of political entities.
The notice has been sent to national and regional political parties including the BJP, Congress, CPI(M), AAP, BSP, DMK, TMC, JMM, JD(U), BJD, SP, and NPP. They have been asked to explain their stand on the continued use of anonymous cash donations.
The petitioner contends that in an era where digital payments are widely used, political parties should not be allowed to rely on untraceable cash contributions. He has requested the court to strike down the provision and mandate full disclosure of all donations, regardless of the amount.
The plea also asks the court to direct the Election Commission to insist on complete donor details in contribution reports and empower the tax department to audit financial filings submitted by political parties. It calls for strict action, including withholding of election symbols, for parties that fail to comply with disclosure norms.
The Supreme Court has given the respondents time to file their replies before it takes up the matter again.
