The Finance Act, 2016, amended the Foreign Contribution Regulation Act (FCRA) allowing foreign companies with subsidiaries in India to fund political parties. The EC in its 255th report submitted to the government in March 2015 recommended that political parties should “fully and clearly” disclose all the amounts received and the expenditure incurred by them. Satya PrakashTribune News ServiceNew Delhi, October 3The Supreme Court on Tuesday issued notices to the Centre and the Election Commission on a PIL demanding transparency in funding of political parties. These amendments made it possible for corporates to make unlimited donations to political parties without giving details of such donations, the petitioners said. According to the petitioners, the Finance Act, 2017, introduced the use of electoral bonds which is exempt from disclosure under the Representation of Peoples Act, 1951.
Satya Prakash New Delhi, October 3 The Supreme Court on Tuesday issued notices to the Centre and the Election Commission on a PIL demanding transparency in funding of political parties. A Bench headed by Chief Justice Dipak Misra asked the Centre and the poll panel to respond to the PIL filed by the Association for Democratic Reforms (DAR) and Centre for Public Interest Litigation (CPIL) challenging the government’s attempt to legalise anonymous donations and relax cap on corporate donations to political parties for election funds. The petitioners questioned the validity of various amendments made through the Finance Act, 2017, and the Finance Act, 2016, in the Companies Act, Income Tax Act, Representation of People Act, Reserve Bank of India Act and Foreign Contribution Regulations Act , As Reported By Tribune.
According to the Newspaper,On behalf of the petitioners, advocate Prashant Bhushan told the Bench that political parties must not be allowed to accept any cash donations. The amendments removed the cap that barred corporate entities from donating more than 7.5 per cent of their average net profit to a political party, he pointed out. Political funding has been a major concern as the system lacked transparency.
