SC issues notice on plea concerning cash donations received by political parties

New Delhi: The Supreme Court on Monday sought responses from the Centre and others on a plea which challenged the validity of a provision of the Income Tax Act that allows political parties to receive “anonymous” cash donations below Rs 2,000.

The plea said this lack of transparency undermines the purity of the election process as it deprives voters of the crucial knowledge about the source of political funding, including the donors and their motives, preventing them from making a rational, intelligent and fully informed decision while casting their vote.

The apex court issued notices to the Centre, Election Commission and others seeking their responses on the petition, which has also sought a direction to the poll panel to prescribe as a condition for registration of a political party and allotment of the election symbol that no amount can be received in cash by any political party.

A bench of Justices Vikram Nath and Sandeep Mehta said the matter would be listed for hearing after four weeks.

At the outset, the bench asked senior advocate Vijay Hansaria, who appeared for petitioner Khem Singh Bhati along with advocate Sneha Kalita, as to why they have not approached the high court first.

“Let the high court consider this,” the bench said.

Hansaria said the plea concerns all political parties and the funding to them across the country. The bench agreed to hear the plea and issued notices to the poll panel, the Centre and others, including several political parties like the BJP and Congress. The plea sought the striking down of Clause (d) of section 13A of the Income Tax Act, 1961, as unconstitutional, and also referred to the apex court’s 2024 judgement which scrapped the electoral bonds scheme.