SC Asks Centre, EC to Clarify 'Anonymous' Cash Donations to Parties, Seeks Transparency in Political Funding
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The Supreme Court has sought responses from the Centre and the Election Commission of India (ECI) on a plea to bring transparency to political party funding. The petition, filed by Delhi-based lawyer Khem Singh Bhati, challenges the constitutional validity of section 13A(d) of the Income Tax Act, 1961, which allows political parties to collect anonymous cash donations up to ₹2,000. The petition argues that the lack of information about donors violates citizens' fundamental right to know the source of funding for political parties. It seeks a direction to the ECI to bar cash donations as a condition for registration and allotment of election symbols. The court issued notices to the Centre, ECI, six national parties, and six state parties, including BJP, INC, CPI-M, BSP, AAP, and NPP, among others. The petition highlights the absence of addresses and PAN numbers of donors in contribution reports submitted by parties, as well as the failure to disclose the sources of large amounts of money received as bank interest. The plea also points out that several parties have shown large sums of money received in cash against subscriptions without providing details of the donors. The Association for Democratic Reforms' analysis of contribution reports shows that a significant portion of the income of some parties comes from undisclosed sources. The petition notes that the number of registered unrecognised political parties has increased significantly in the past two decades, with 219 RUPPs claiming exemption from income tax to the tune of ₹608 crore in 2019-2020. The ECI has delisted 334 parties for not contesting elections or not maintaining a registered address. The court has kept the matter for hearing after four weeks, seeking responses from the Centre, ECI, and the parties concerned. The petition aims to bring transparency in political party funding and ensure that the source of funding is disclosed to citizens.
