New Delhi, November 26: India’s Supreme Court on Monday agreed to hear a petition seeking a complete ban on cash donations to political parties, including contributions below ₹2,000, a threshold currently exempt from disclosure and tax scrutiny under the Income Tax Act.
A bench of Justices Vikram Nath and Sandeep Mehta issued notices to the Election Commission of India (ECI), the Union government, the Central Board of Direct Taxes and 13 political parties, including the Bharatiya Janata Party (BJP), Congress, DMK, CPI(M), Trinamool Congress, Samajwadi Party and Aam Aadmi Party.
The petition, filed by Khem Singh Bhati, challenges clause (d) of Section 13A of the Income Tax Act, which allows political parties to receive cash donations up to ₹2,000 without disclosing donor details. The plea argues that the provision enables anonymous contributions to be split into multiple small payments, undermining transparency in political funding.
“No amount should be received in cash to maintain transparency,” the petition said, contending that the clause violates voters’ fundamental right to information under Article 19(1)(a) of the Constitution.
The petitioner has also sought directions to the ECI to strictly scrutinise Form 24A — a mandatory annual filing required to claim tax exemptions — and ensure parties disclose complete donor information, including PAN and address, or deposit unverified contributions with the government.
The plea cited delays and discrepancies in political parties’ contribution reports, noting that CPI(M) filed its report 43 days after the deadline, BJP after 42 days and Congress after 27 days. It said several reports were incomplete, lacking bank details, donor PAN numbers and information on large sums recorded as fees, subscriptions or bank interest.
The petition further urged the court to direct the ECI to consider penal action under paragraph 16A of the Election Symbol Order, including suspension of party symbols for failure to submit complete reports on time. The Supreme Court said it would list the case for hearing in two to three weeks.
