Plea challenges rules allowing parties to accept cash below ₹2,000
NEW DELHI: The Supreme Court is scheduled to hear on Monday a petition challenging the constitutional validity of a provision that permits political parties to receive anonymous cash donations of less than ₹2,000.
A bench comprising Justices Vikram Nath and Sandeep Mehta is expected to hear the matter. The petition raises questions about transparency in political funding and seeks changes to the way political contributions are disclosed.
Plea Seeks End to Anonymous Cash Contributions
The petition challenges Clause (d) of Section 13A of the Income Tax Act, 1961, which provides tax-related benefits to political parties subject to certain conditions, including provisions concerning contributions.
The petitioner has argued that political parties should disclose the identity and other details of donors making contributions. It has also sought a restriction on accepting cash donations in a manner that allows the donor's identity to remain undisclosed.
The petition contends that greater transparency is necessary to ensure accountability in political financing.
Election Commission Asked to Scrutinise Party Reports
The plea has also sought directions to the Election Commission of India to scrutinise contribution reports submitted by recognised political parties.
In particular, the petitioner has referred to Form 24A, through which political parties report contributions. The plea seeks action against parties that allegedly fail to provide complete donor information, including details such as addresses and PAN information.
The requested directions could place greater emphasis on verifying the financial disclosures made by political parties.
Electoral Bonds Verdict Cited in Supreme Court Plea
The petitioner has referred to the Supreme Court's 2024 judgment striking down the electoral bonds scheme, arguing that political funding should remain transparent.
The court had previously held that voters have a right to information concerning political funding. The present petition seeks to extend the transparency debate to anonymous cash contributions below the ₹2,000 threshold.
The case could therefore have wider implications for India's political funding framework if the court decides to examine the constitutional challenge in detail.
Case Puts Political Funding Transparency in Focus
The Supreme Court hearing comes amid continuing debate over how political parties receive and disclose financial contributions.
While the provision at issue concerns relatively small individual cash donations, the petitioner argues that anonymity itself raises concerns about accountability and traceability.
The court's proceedings on Monday are expected to indicate whether the challenge to the existing provision warrants further judicial consideration.
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