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SC seeks govt, EC reply on regulation of parties
The Supreme Court seeks responses from the Union government on a plea for a statutory framework to regulate political parties and curb corruption.
The Supreme Court on Friday sought responses from the Union government and the Election Commission of India on a public interest litigation demanding a comprehensive statutory framework to regulate political parties and prevent their alleged misuse as conduits for money laundering and criminal activities.
A bench of justices Surya Kant and Joymalya Bagchi issued notice on the plea filed by advocate Ashwini Kumar Upadhyay, while suggesting he also implead all recognised and registered political parties since any court directions would directly affect them.
The PIL has urged the court to direct the ECI to frame comprehensive rules governing the registration and functioning of political parties, and for the Union government to enact legislation curbing what it described as the “menace of corruption, casteism, communalism, criminalisation, and money laundering in politics.”
The petition, filed through advocate Ashwani Kumar Dubey, relies on recent income tax raids that allegedly exposed how little-known political outfits are being used as vehicles for laundering unaccounted wealth.
On July 13, raids on the Indian Social Party and Yuva Bharat Atma Nirbhar Dal reportedly unearthed black money worth ₹500 crore. The entities were accused of accepting cash donations through hawala channels and returning the funds via cheque after deducting a 20% commission. Details from newspaper reports have been annexed to the petition.
Similarly, an August 12, 2025 raid on the National Sarva Samaj Party led to authorities allegedly seizing ₹271 crore in unaccounted funds from office bearers’ residences.
The plea contends that such “shell parties” are floated solely to convert black money into white money, with many office bearers having serious criminal antecedents including charges of trafficking, extortion, kidnapping, rape, and contract killings, whilst enjoying police protection under the cover of politics.
“Nearly 90% of registered parties never contest elections and exist merely as conduits for illegal funds,” the petition contended, adding that bogus leaders flaunt SUVs with hooters and oversized nameplates whilst living off illicit cash and projecting political legitimacy.
Upadhyay’s petition underscores that political parties wield extraordinary power under India’s constitutional framework, binding legislators under the Tenth Schedule, recommending disqualifications, and indirectly shaping the election of the President, Vice-President and chief ministers.
Yet unlike companies, cooperatives, or trusts, parties remain outside any comprehensive regulatory framework.
Currently, Section 29A of the Representation of the People Act provides only for party registration, whilst Section 29C mandates disclosure of donations above ₹20,000.
“There is no law to ensure internal democracy, transparent funding, or accountability,” the plea states, pointing out that despite being substantially financed by the state, political parties are not treated as “public authorities.”
Stressing the urgency of reforms, the PIL references comparative democracies where political parties are subject to statutory oversight, including mandatory internal democracy, term limits for leadership, transparent accounting, and penal consequences for violations.
It argues that the unchecked proliferation of unregulated parties undermines public trust, entrenches corruption, and corrodes democratic institutions.
“Despite holding decisive power in governance and lawmaking, political parties remain unaccountable. A robust legal framework is indispensable to preserve the integrity of Indian democracy,” the plea submits.
