Prohibitions and restrictions regarding political contributions
Section 182 of the Companies Act, 2013 deals with prohibitions and restrictions regarding political contributions. Notwithstanding anything contained in any other provision of this Act, a company, other than a Government company and a company which has been in existence for less than three financial years, may contribute any amount directly or indirectly to any political party: 1* * * * * Provided that no such c The Act came into force on 01 Apr 2014.
(1) Notwithstanding anything contained in any other provision of this Act, a company, other than a Government company and a company which has been in existence for less than three financial years, may contribute any amount directly or indirectly to any political party:
1* * * * *
Provided 2*** that no such contribution shall be made by a company unless a resolution authorising the making of such contribution is passed at a meeting of the Board of Directors and such resolution shall, subject to the other provisions of this section, be deemed to be justification in law for the making 3*** of the contribution authorised by it.
(2) Without prejudice to the generality of the provisions of sub-section (1),--
(a) a donation or subscription or payment caused to be given by a company on its behalf or on its account to a person who, to its knowledge, is carrying on any activity which, at the time at which such donation or subscription or payment was given or made, can reasonably be regarded as likely to affect public support for a political party shall also be deemed to be contribution of the amount of such donation, subscription or payment to such person for a political purpose;
(b) the amount of expenditure incurred, directly or indirectly, by a company on an advertisement in any publication, being a publication in the nature of a souvenir, brochure, tract, pamphlet or the like, shall also be deemed,--
(i) where such publication is by or on behalf of a political party, to be a contribution of such amount to such political party, and
(ii) where such publication is not by or on behalf of, but for the advantage of a political party, to be a contribution for a political purpose.
4[(3) Every company shall disclose in its profit and loss account the total amount contributed by it under this section during the financial year to which the account relates.
(3A) Notwithstanding anything contained in sub-section (1), the contribution under this section shall not be made except by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account:
Provided that a company may make contribution through any instrument, issued pursuant to any scheme notified under any law for the time being in force, for contribution to the political parties.]
(4) If a company makes any contribution in contravention of the provisions of this section, the company shall be punishable with fine which may extend to five times the amount so contributed and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months and with fine which may extend to five times the amount so contributed.
Explanation.-- For the purposes of this section, "political party" means a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951).
Section 182, The Companies Act, 2013 (Act 18 of 2013).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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''Association for Democratic Reforms vs Union of India & Ors.''
Court's Decision & Legal Precedent
Struck down the Union's 2018 Electoral Bonds scheme. The Court held that the scheme violated the voters’ right to information enshrined in Article 19(1)(a) of the Constitution, and that the scheme could lead to Quid pro quo situations.
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Association For Democratic Reforms vs Union Of India
Court's Decision & Legal Precedent
The Electoral Bond Scheme violates Article 19(1)(a) by preventing disclosure of electoral contributions essential to informed voting. Voters have fundamental right to information about political funding as political parties are focal units in electoral system affecting policy outcomes. The purposes cited (curbing black money and protecting donor privacy) do not justify this extensive non-disclosure. Alternative measures like Electoral Trusts, direct banking channels with disclosure at Rs. 20,000+ threshold, and sector-specific audit requirements satisfy the objectives with lesser impact on fundamental rights. Removal of contribution caps in Section 182 of Companies Act is manifestly arbitrary as it fails to distinguish between profit-making and loss-making companies and treats corporations like individuals despite different capacities to influence politics. The right to know trumps donor privacy in balancing analysis as political contributions are public acts affecting public policy and representative democracy.
On this section: Governs corporate political contributions. Original provision with contribution cap was reasonable; removal of cap is arbitrary.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… and <sup>(</sup>b) every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to fine. was in default of the provision was punishable for a term which could extend to three years and be liable for fine. - 7. Section 182 of the Companies Act 2013 substantively incorporated the provisions of Section 293-A of the 1956 Act, as amended in 1985. Section 182 enables a company to contribute any amount directly or indirectly to any political party. The provision bars a Government company and a company which has been in existence for less …
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… and <sup>(</sup>b) every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to fine. was in default of the provision was punishable for a term which could extend to three years and be liable for fine. - 7. Section 182 of the Companies Act 2013 substantively incorporated the provisions of Section 293-A of the 1956 Act, as amended in 1985. Section 182 enables a company to contribute any amount directly or indirectly to any political party. The provision bars a Government company and a company which has been in existence for less …
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… contributed; and <sup>(</sup>b) every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to fine. was in default of the provision was punishable for a term which could extend to three years and be liable for fine. - 7. Section 182 of the Companies Act 2013 substantively incorporated the provisions of Section 293-A of the 1956 Act, as amended in 1985. Section 182 enables a company to contribute any amount directly or indirectly to any political party. The provision bars a Government company and a company which has been in existence for less …
Made under this section, and citing it
3 instruments name this provision in its title or its text without being made under it.
Questions about Section 182
What have the courts held on Section 182 of the Companies Act?
''Association for Democratic Reforms vs Union of India & Ors.'' (15 Feb 2024) is the leading judgment on this section among those set out below: Struck down the Union's 2018 Electoral Bonds scheme. Another 1 judgment on this section is set out below, all of them from the Supreme Court.
How do I find court cases under Section 182 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 182, section 182 Companies Act, section 182 of the Companies Act. People searching for it also type corporation act 182. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with ''Association for Democratic Reforms vs Union of India & Ors.'' (15 Feb 2024).
What should I read with Section 182 of the Companies Act, and has it changed?
Its own text turns on Representation of the People Act 29A (Registration with the Election Commission of associations and bodies as political parties), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it. 3 instruments name it without being made under it, most recently Clarification with regard to applicability of section 182(3) of the Companies Act,2013. (2013), then G.S.R. 40(E)-Companies (CSR) Amendment Rules dt 22.01.2021 (2021).
When did Section 182 of the Companies Act come into force?
Section 182 of the Companies Act, cited as Companies Act 182, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.