SC issues notice on plea concerning cash donations received by political parties
New Delhi (PTI): The Supreme Court on Monday sought responses from the Centre and others on a plea which challenged the validity of a provision of the Income Tax Act that allows political parties to receive "anonymous" cash donations below Rs 2,000.
The plea said this lack of transparency undermines the purity of the election process as it deprives voters of the crucial knowledge about the source of political funding, including the donors and their motives, preventing them from making a rational, intelligent and fully informed decision while casting their vote.
The apex court issued notices to the Centre, Election Commission and others seeking their responses on the petition, which has also sought a direction to the poll panel to prescribe as a condition for registration of a political party and allotment of the election symbol that no amount can be received in cash by any political party.
A bench of Justices Vikram Nath and Sandeep Mehta said the matter would be listed for hearing after four weeks.
At the outset, the bench asked senior advocate Vijay Hansaria, who appeared for petitioner Khem Singh Bhati along with advocate Sneha Kalita, as to why they have not approached the high court first.
"Let the high court consider this," the bench said.
Hansaria said the plea concerns all political parties and the funding to them across the country.
The bench agreed to hear the plea and issued notices to the poll panel, the Centre and others, including several political parties like the BJP and Congress.
The plea sought the striking down of Clause (d) of section 13A of the Income Tax Act, 1961, as unconstitutional, and also referred to the apex court's 2024 judgement which scrapped the electoral bonds scheme.
"The petitioner is seeking direction that the 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," the plea, filed through advocate Jayesh K Unnikrishnan, said.
Section 13A of the Act deals with the special provision relating to the incomes of political parties.
The plea said section 13A was introduced in the Act and 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 the computation of total income.
The plea has also sought a direction to the poll panel to scrutinise Form 24A contribution reports of all recognised political parties and to require them to deposit the amount received by way of contributions for which address and/or PAN have not been furnished.
It said the EC should be directed to issue notices to the defaulting political parties under the Election Symbol Order, 1968, as to why the reserved symbol shall not be suspended or withdrawn for failure to submit Form 24A contribution reports with full particulars within a prescribed period.
The plea said the poll panel should be directed that accounts of all political parties shall be maintained in such form as may be prescribed and audited by independent auditors appointed by it.
It has also sought a direction to the Central Board of Direct Taxes (CBDT) to scrutinise the income tax returns and audit reports filed by political parties under sections 142 and 143 of the Income Tax Act for the last five years.
The plea said that the CBDT should be directed to initiate appropriate proceedings for the levy of tax, penalty and prosecution for failure to comply with the requirements of Section 13A of the Income Tax Act read with Section 29C of the Representation of the People Act, 1951.
Section 29C of the Representation of the People Act deals with the declaration of donations received by political parties.
The plea claimed the cause of action arose when the political parties filed their contribution reports and audit reports in September and November 2024 and in August 2025, giving "incomplete details" in their reports.
"The injury to the public is the violation of the fundamental right to information of the voter, as guaranteed under Article 19(1)(a) of the Constitution. This violation is primarily caused by section 13A(d) of the Income Tax Act, 1961, which allows political parties to receive anonymous cash donations below Rs 2,000," the plea said.
It said this lack of transparency deprives voters of the crucial knowledge about the donors and their motives, preventing them from making an informed decision while casting their vote.
"Ultimately, this undermines the purity of the election process and compromises the integrity and accountability of a healthy democracy by allowing the potential influence of undisclosed or tainted money," the plea said.
It said that with the phenomenal increase in digital payments in India, the bulk of transactions are done through UPI.
"Thus, with the advent of UPI revolution in the country, permitting exemption of income received by way of contribution in cash below Rs 2,000 under section 13A(d) of the Income Tax Act, 1961, can no more be justified and is manifestly arbitrary and has no nexus to the object of maintaining transparency in the funding of political parties," it said.
The plea also referred to the apex court's 2024 judgement, which struck down the electoral bonds scheme.
The scheme, which was notified by the government on January 2, 2018, was pitched as an alternative to cash donations made to political parties as part of efforts to bring in transparency in political funding.
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Priyanka Gandhi visited Zubeen Garg's cremation ground for politics: Himanta
Guwahati (PTI): Assam Chief Minister Himanta Biswa Sarma on Sunday accused Congress leader Priyanka Gandhi Vadra of doing politics over the death of Zubeen Garg, two days after her visit to the singer’s cremation ground.
Speaking to reporters at BJP state headquarters here, Sarma announced that he will not visit Garg's cremation ground 'Zubeen Khetra' till the Assembly elections are over.
"'Zubeen Khetra' should not be used for political purposes. Priyanka Gandhi came to Assam for political purposes and spent just two minutes at the cremation ground," he said.
Stating that no one should visit 'Zubeen Khetra' when they come for political purposes, Sarma said that is why Prime Minister Narendra Modi or Union Home Minister Amit Shah have not been there despite visiting the state multiple times over the last three months.
"Why didn't Priyanka Gandhi visit Swahid Smarak or Dr Bhupen Hazarika’s memorial? The Congress is openly doing politics over Zubeen Garg. They made people emotional and sought votes," he alleged.
On Friday, Vadra visited Garg's cremation ground and said the iconic musician was the "voice of Assam's soul" and he is "above politics".
The Congress leader, who was on a two-day trip to the state to shortlist party candidates for the upcoming Assembly polls, made an unscheduled visit to 'Zubeen Khetra' at Sonapur on the outskirts of Guwahati without any media presence.
The celebrated singer died under mysterious circumstances in Singapore on September 19 last year while swimming in the sea. He had gone to the island nation to attend the 4th edition of the North East India Festival (NEIF).
The CM further claimed that around 12,000 BJP workers donated blood on Zubeen Garg's birthday in November last year.
"Whose value is more -- Priyanka Gandhi who spent two minutes or me who arranged 12,000 blood donors? People are using Garg's name and doing politics," he added.
Sarma pointed out that it was he who had selected the location to make 'Zubeen Khetra' and arranged everything.
"If Priyanka Gandhi and Rahul Gandhi have courage, let them go to Swahid Smarak and confess that their grandmother and father had committed sins during Assam Agitation," he added.
A 'Swahid Smarak', the martyrs memorial, was inaugurated in December last year in the state capital in memory of more than 850 people from the Assamese community who had died during the six-year long Assam Agitation.
"I will not go to Zubeen Khetra till the elections are over. I feel no candidate should visit it if they are contesting elections," Sarma said.
Talking about public demand to set up a fast-track court for speedy trial of Garg's death, the CM claimed that a "conspiracy" is happening in that aspect.
"The judge, in whose court the case is going on at present, has rejected three bail petitions of the accused. Seeing this, two others withdrew their bail applications," he added.
Sarma claimed that a preparation is going on to take away the case from this judge to help the accused.
"This is a design of a particular news channel, a particular newspaper and Congress to change the judge, give bails to the accused before election and blame the BJP," he added.
"It is just politics. There is a conspiracy to give bail and put BJP in awkward position," he said.
Sarma said the Assam Cabinet on February 26 will take a decision whether the case should be handed over to a fast-track court.
"We may transfer it, but we will not be responsible for the consequences of the case then," he added.
Garima Saikia Garg, wife of Zubeen Garg, and Public Prosecutor Ziaul Kamar on February 16 had expressed dissatisfaction over the slow pace of the case being heard by the Kamrup Metropolitan District and Sessions Court.
With several petitions filed before the court on different aspects by the accused, the entire process has been delayed as the trial is yet to begin, Kamar had said.
NEIF chief organiser Shyamkanu Mahanta, the singer's manager Siddharth Sharma, his two band members Shekhar Jyoti Goswami and Amrit Prabha Mahanta, his cousin and Assam Police DSP Sandipan Garg, and his PSOs Nandeswar Bora and Prabin Baishya are in jail as accused in the case.
