Supreme Court issues notice on plea to maintain transparency in political funding

A plea has been filed before the Supreme Court seeking direction that political parties must disclose the name and all other particulars of the person paying any amount of money to it and no amount can be received in cash so as to maintain transparency in the political funding.

Justice Vikram Nath led bench today issued notice on a plea filed by Khem Singh Bhati seeking a mandamus to the Election Commission of India to :

a. scrutinize Form 24A contribution reports of all recognised political parties (National and State), and require them to deposit the amount received by way of contributions for which address and/or PAN number have not been furnished;
b. issue notices to the defaulting political parties under paragraph 16A of the Election Symbol Order, 1968 as to why the reserved symbol shall not be suspended/ withdrawn for failure to submit Form 24A contribution reports with full particulars within prescribed period.
c. require that the accounts of all political parties shall be maintained in such form as may be prescribed and audited by independent auditors appointed by it.

The plea also challenges Section 13A(d) of the Income Tax Act, 1961 for being violative of Article 19(1)(a) of the Constitution in as much as receipt of huge amount of money in cash purportedly below Rs 2000 violates the right to information of the voters about the source of fund of the political parties. Section 13A was introduced in the Income Tax Act, 1961 by Taxation Laws (Amendment) Act, 1978, whereby income of a political party, received by way of interest on securities, Income from house property, or income from other sources and any income by way of voluntary contributions are exempted from computation of total income. Sub-section (4B) was inserted in section 139 making it mandatory for all political parties to furnish a return of income.

"The voters have right to information of all the amounts received by the political parties to enable them to cast their votes with full knowledge of the donors and their antecedents. It is only if the voters have information as to the persons who are financing the political party, they would be able to cast their votes rationally and intelligently. The voters have the right to the disclosure of all the information about the political parties which would include the details of the donors before choosing a political party for whom he/ she should cast their vote", the plea filed through Advocate Jayesh Unnikrishnan states.

A further direction to the Election Commission of India to prescribe as a condition of registration of political party and allotment of election symbol that no amount can be received in cash by any political party has been sought.

"Direct the Central Board of Direct Taxes to scrutinize the income tax returns and the audit reports filed by the political parties under section 142 and 143 of the Income Tax Act, 1961 for the last five years and initiate appropriate proceedings for levy of tax, penalty and prosecution for failure to comply with the requirements of section 13A of the Income Tax Act, 1961 read with section 29C of the Representation of People Act, 1951", the plea adds.

The petition has been settled by Senior Advocate Vijay Hansaria, and drafter by Advocates Nandini Rai, Kavya Jhawar, and Aashay Shukla.

Case Title: DR. KHEM SINGH BHATI vs. ELECTION COMMISSION OFINDIA AND OTHERS

Hearing Date: November 24, 2025

Bench: Justices Vikram Nath and Sandeep Mehta