EC Calls for Steeper Limits on Cash Donations to Political Parties: Report

If the EC's proposals are accepted, parties will have to disclose all donations over Rs 2,000, instead of Rs 20,000.

CEC Rajiv Kumar.

(Photo Courtesy: Facebook/Election Commission of India)

Chief Election Commissioner (CEC) Rajiv Kumar has written a letter to Union Law Minister Kiren Rijiju, proposing to bring down the level of anonymous political donations from Rs 20,000 to Rs 2,000 and cap cash donations at 20 percent, or a maximum of Rs 20 crore, to remove black money from election funding, a report stated.

In the letter, Kumar recommended a slew of amendments to the Representation of the People (RP) Act, news agency PTI reported sources as saying.

As per the current rules, political parties have to disclose all monetary donations over Rs 20,000 through their contribution report to the Election Commission (EC).

If the Law Ministry approves the EC's proposals, political parties will have to disclose all donations above Rs 2,000, instead of Rs 20,000, thus bringing in more transparency in the system.

Proposals To Ensure Nil Foreign Funding

Further, the EC has found that while some political parties did not report any donations, their audited accounts statement showed receipts of massive amounts, proving that cash transactions had taken place, below the threshold limit of Rs 20,000.

If the amendment goes through, a candidate would have to maintain a separate account for receipts and payments with regard to elections, and the same will have to be disclosed to authorities transparently.

Currently, maintaining a separate bank account for election expenditure is a part of the instructions, but the EC wants it to become a part of the Conduct of Election Rules.

Further, the EC has sought electoral reforms to ensure that no foreign donations find their way into the funds of political parties, which has been stipulated under the RP Act and the Foreign Contribution Regulation Act (FCRA), 2010, PTI reported.

This comes in the backdrop of the poll panel delisting 284 defaulting and non-compliant registered unrecognised political parties (RUPPs), declaring over 253 of such parties inactive.

The Income Tax Department had also recently raided several such entities across the country on the charges of alleged tax evasion after the EC shared its report with the Central Board of Direct Taxes (CBDT).

(With inputs from PTI.)