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The Supreme Court has held that curbing the influence of black money in elections is an important responsibility of the Election Commission of India (ECI). It directed stronger coordination, time-bound investigation and speedy disposal of election-related black-money cases.

Key Directions of the Supreme Court

• Seizure reporting: Cash/assets seized during elections to be reported within 24 hours, with reasons establishing a prima facie link to an electoral offence.
• Time-bound investigation: Election-related FIR investigations should ordinarily be completed within 1 year; delays must be justified to the ECI.
• Quarterly monitoring: Investigating Officers to submit quarterly status reports to the ECI.
• Income Tax coordination: Static Surveillance Teams detecting cash exceeding ?10 lakh should share information with Income Tax authorities.
• Speedy trials: High Courts to facilitate expeditious disposal of election-related black-money cases, including designated courts where necessary.
• Withdrawal of criminal cases: Withdrawal of cases against candidates relating to an election cycle requires approval of the concerned High Court.
• Compliance: ECI and State Governments directed to submit compliance reports by 18 November 2026.

Why is Black Money a Threat to Electoral Integrity?

• Voter autonomy: Illicit monetary inducements can distort the free and informed choice of voters, undermining democratic consent.
• Level playing field: Unaccounted wealth can disadvantage financially weaker candidates and promote money power/plutocracy.
• Policy capture: Illicit political financing can encourage quid pro quo, favouritism and cronyism.
• Criminal–political nexus: Large-scale movement of illicit cash can strengthen the role of criminal networks in elections.

Important Constitutional & Judicial Linkages

• Article 326: Universal adult suffrage.
• Article 14: Equality and the need for a level electoral playing field.
• Article 19(1)(a): Right to information has implications for transparency in political funding.
• Free and fair elections:Recognised as part of the Basic Structure in Indira Nehru Gandhi v. Raj Narain (1975).
• Kanwar Lal Gupta v. Amar Nath Chawla (1974): Financial disparity can distort electoral competition.
• PUCL v. Union of India (2013):NOTA linked to the voter’s freedom to express electoral choice.
• ADR v. Union of India (2024): Supreme Court struck down the Electoral Bonds Scheme, emphasising transparency in political funding.
• Public Interest Foundation v. Union of India (2018): Highlighted concerns over criminalisation of politics.
• Vohra Committee (1993): Examined the criminal–political nexus.