The Honourable Chief Justice of India
The Supreme Court of India
New Delhi

Date: 17.12.2016

Subject: Bringing to your kind attention the exemption granted to political parties from IT scrutiny of old notes.

Respected Sir,

The present government has taken a decision to demonetize old currency notes of Rs. 500 and 1000 with a stated aim to fight the scourge of black money, corruption and terrorism.

Given the extraordinary nature of this measure which has affected every citizen and business's financial autonomy and brought their records under scrutiny; the exemption granted to political parties from any scrutiny from income tax authorities whatsoever in this regard, seems patently unfair to the citizenry. [Source - http://bit.ly/2hZgYfl ]

Political Parties receive large amounts of funding from various sources. According to a report by transparency watchdog Association for Democratic Reforms 75% of the funding of six major political parties is from unknown sources. [Source - http://bit.ly/2hJ7OnJ ]

Therefore, exempting Political Parties from any scrutiny defeats the very purpose of this massive exercise of demonetization due to which common citizens have suffered immensely. On the contrary, it gives incentives for black money holders to use political parties as fronts for laundering black money; thereby, compromising the very functioning of our democracy and failing to ensure the achievement of the objectives of the demonetization.

This black money is endangering the free and fair democracy, which the Supreme Court has recognised as the basic structure of the constitution.

“An estimate by the Centre for Media Studies in Delhi puts the total cost of this season’s campaigns for seats in India’s parliament and state assemblies at $4.9 billion. That would make it the second-most expensive in world history, trailing just behind America’s of 2012, which cost $6 billion. According to some estimates India’s election will cost even more; total expenditures could exceed 0.35% of national GDP. The money raised by the electoral trusts is only 2.2% of the total reported by the parties; a drop in the bucket—but a limpid drop, with its donors and recipients clearly labelled.” [Source - http://econ.st/1iN9Pgj ]

So, we on behalf of millions of citizens appeal to the good sense of our judiciary to proceed against this leniency provision in the Income Tax Act.

Yours Sincerely,
Kanhaiya Kumar