The Home Ministry on Friday asked the Arvind Kejriwal-led Aam Aadmi Party (AAP) to provide details of the party's foreign funding under the provisions of the Foreign Contribution Regulation Act, while the party dubbed the action as a case of "witch hunt".
The national capital's ruling party received the notice from the ministry on the grounds of violating norms of the Foreign Contribution Regulation Act (FCRA) 2010.
"It is a part of routine queries sent to political parties on overseas funds. Any further actions would be taken only after the AAP submits its reply," a ministry official said.
The official said that political parties were asked for details of their funding periodically and the notice to the AAP was a part of that system.
He also clarified that it was not a show cause notice.
Meanwhile, a statement issued by the AAP said that the party was ready to face any probe as it had nothing to hide.
"We have nothing to hide. We are ready to face any probe and party will fully cooperate with all concerned officials and agencies," the AAP statement said.
The statement dubbed the Home Ministry's action a clear case of "witch hunt".
"The home ministry had given us a clean chit before the High Court on this issue and now they are sending us fresh notices… It is a clear case of political witch hunt. All the agencies at centre's disposal have been unleashed against Aam Aadmi Party, its government in Delhi and its ministers which is very dangerous for democracy," the statement added.
The AAP had sought donations from the public at the time of inception and a majority of its donors were from outside India. In 2013, the UPA government had also probed the funds of the party but no discrepancies were found.
The AAP has faced accusations by its former members of accepting donations from dubious firms with no credible source of income or legitimate addresses.