Supreme Court To Hear On Aug 31 Plea On Cash Donations Received By Political Parties

New Delhi, Aug 27: The Supreme Court is scheduled to hear on August 31 a plea challenging the validity of a provision allowing political parties to receive cash donations below ₹2,000.

A bench comprising Justices Vikram Nath and Sandeep Mehta is expected to hear the petition filed by Khem Singh Bhati, which seeks greater transparency in political funding.

The plea challenges Clause (d) of Section 13A of the Income Tax Act, 1961, arguing that anonymous cash donations deprive voters of information about the sources of political funding and affect their right to make informed electoral choices.

The petitioner has sought a direction to the Election Commission to make disclosure of donors and other particulars mandatory and to prohibit political parties from accepting cash contributions.

The plea also seeks scrutiny of Form 24A contribution reports filed by recognised political parties and action against parties failing to provide complete donor details.

It further seeks directions to the Central Board of Direct Taxes (CBDT) to scrutinise income tax returns and audit reports of political parties for the past five years and initiate appropriate proceedings for violations.

The Supreme Court had agreed to hear the matter in November 2025 and sought responses from the Centre and other parties.

The petition has also cited the apex court’s 2024 judgment striking down the electoral bonds scheme, underscoring the importance of transparency in political funding. (Agencies)