Is dowry given voluntarily by parents still illegal?

The law specifically targets dowry that is demanded, or given/received in connection with the marriage as though it were a condition of it — genuinely voluntary gifts given by parents out of love and affection, without any demand or expectation attached, are generally treated differently and are not themselves prohibited.

That said, the line can sometimes be blurry in practice, and how something is characterised later (voluntary gift vs. dowry) can matter significantly if a dispute arises down the line — for instance, in a later matrimonial dispute where one side claims certain items were "dowry" that must be returned, versus gifts that remain the bride's streedhan regardless.

As a general practical matter, gifts given without any prior demand from the groom's side, and not treated as a precondition for the marriage to happen, are on much safer ground. If you have specific concerns about how a particular gift or transaction might be viewed, it's worth discussing the specifics with a family law advocate before the wedding.