The Commission asked the party to reply within 20 days on why action should not be taken against it for failing to follow its lawful directions.
Citing Central Board of Direct Taxes report on concealment of donations received by the party, the poll panel said the AAP has recorded total credits of over 67 crores rupees but it has disclosed total income of over 54 crores rupees from donations in its audited accounts.
Therefore, over 13 crores rupees have not been accounted for by the party and these donations have been held to be from unknown sources.
The Commission said the CBDT report also states that the party has taken accommodation entries from hawala operators to the tune of two crore rupees which was also wrongly disclosed as voluntary donations.
The party also made incorrect disclosures on its official website and furnished incorrect information.
The poll panel said it is apparent from the report of the CBDT that Aam Aadmi Party has not observed the transparency guidelines of the Commission.
In this way, the party has prima facie, violated the lawful direction of the Election Commission.