SC Says Black Money In Polls Undermines Democracy

A two-judge bench comprising Justices Sanjay Karol and N.K. Singh said, "Any external factors that may influence this exercise of choice have the ability to compromise the very essence of democracy".
The court said an individual's choice was not free if ill-gotten money was involved and was instead influenced by gratification, monetary or otherwise, or by promises.

“Black money in the electoral process i.e. the issue with which we are herein concerned, is one such aspect that compromises democracy, rule of law and the electoral process itself," it said.
The bench said the circulation of tainted money in the electoral process was not a recent phenomenon and had been recognised repeatedly.

Referring to the seizure of cash and other assets during elections, the court said, "The authority affecting the seizure must, within 24 hours, report the same to the District Magistrate/Additional District Magistrate/Court having competent jurisdiction along with written reasons disclosing the prima facie nexus between the cash or other asset seized and the suspected electoral offence."
Justice Karol, who authored the verdict for the bench, said that where FIRs were registered, the investigating officer (IO) should make every possible endeavour to complete the investigation within a year.

"If this timeline is exceeded, reasons shall be recorded and communicated to the Election Commission of India," the court said.

The directions came on a plea filed by the Karnataka government relating to the 2014 Lok Sabha elections, during which large-scale seizures of black money were made in Bellary district.

The Supreme Court directed the Election Commission and state governments to file compliance affidavits by November 18.

It said investigating officers must submit quarterly status reports on investigations to the EC through the nodal officer, after approval by the Senior Superintendent of Police or Deputy Commissioner of Police of the district concerned.

"When Static Surveillance Teams (SST) during checks find money in excess of Rs 10 lakh, information about the same shall be forwarded to the income tax authorities," the top court directed.
Referring to the importance of elections in a democracy, the court said those contesting elections could not themselves be responsible for conducting them.

"If that is so, the election would be rendered illusory," the top court said.

The bench directed that all efforts be made for expeditious disposal of cases against candidates and sitting MPs and MLAs, keeping in view the recurrent nature of elections.

It also directed all High Courts to follow procedures and designate courts for prompt hearing and disposal of such cases to ensure speedy conclusion of trials.

The court noted that an affidavit filed by the Election Commission provided details of cases pending in connection with the 2024 Lok Sabha elections and Assembly elections held between 2019 and 2025, showing a large percentage of cases remained pending.