Supreme Court Said- Money Laundering Through Political Parties is a Serious Matter | Supreme Court said-Money laundering through political parties is a serious matter: Why not solid law; Election Commission and Center sought answers till 3 November

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  • Supreme Court said money laundering through political parties is a serial matter

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The Supreme Court said, tax evasion and money laundering is a serious issue through such political parties that are inactive. The court said that it is directly associated with democracy and election process.

The court issued a notice to the Election Commission, Law Commission and the Central Government seeking answers till 3 November. The court asked why concrete laws have not yet been enacted for registration and regulation of parties.

Advocate Ashwini Upadhyay has filed a PIL. It also mentions two reports of Dainik Bhaskar. The petition said that in the raids of the Income Tax Department, a case of fake donations of 500 crores came to light through two parties Indian Social Party and Youth India Atma Dely Party.

A transaction of 271 crore was caught through the National Sarva Samaj Party. It is alleged that these teams were formed only for money laundering through hawala and commissioning. They have nothing to do with the election.

Petitioner’s argument- 90% of the parties never contest elections According to the petition, about 90% of the parties never contest elections. Tax evasion and money laundering are done by charging commission up to 20%. The petition has demanded that the court instruct the Election Commission to make clear rules regarding registration and functioning of political parties. Transparency of internal democracy, funding should be ensured.

There were more than 2,800 parties in the country in 2024, only 690 fought the election There are 6 national and 67 regional parties in the country. At the time of 2024 Lok Sabha elections, there were more than 2,800 registered non-recognized political parties. According to ADR, only 690 of them contested. That is, most are not active in electoral politics.

By August this year, the Election Commission has done 334 such parties. There are still 2,520 registered political parties left. In 2011, a committee headed by former Chief Justice MN Venkatachalaya prepared a draft of the Political Party (Regulation of Affairs) Bill. But it could not move forward.

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