The Supreme Court has issued notices to the Centre, the Election Commission of India, and recognised political parties on a petition challenging the provision under the Income Tax Act that permits parties to receive anonymous cash donations below ₹2,000.
A Bench comprising Justices Vikram Nath and Sandeep Mehta directed the respondents to file their replies on the plea, which contends that such donations undermine transparency in political funding and violate constitutional principles of equality and informed choice.
The petition argues that anonymous cash contributions deprive voters of crucial knowledge about the source and motives of political funding, thereby affecting their ability to make rational and informed decisions during elections. It seeks directions to prohibit political parties from receiving any amount in cash and to mandate scrutiny of their income tax returns for the past five years.
The matter has been listed for further hearing, with the Court emphasising the importance of financial transparency in the electoral process, particularly in the era of digital payments.
