A year has passed but the Narendra Modi government continues to turn a deaf ear to the strong objections raised by the Election Commission (EC) over their failure to make political funding transparent.
The EC recommended that the Section 29 C of the Representation of the People Act be amended to be cap the limit of anonymous donations to Rs 2,000 from Rs 20,000. But the government has not made the amendments so far. The government had earlier made amendments in the Section 13 A of the Income-Tax (IT) Act to cap cash donations to Rs 2,000.
A top official of the Election Commission told The Quint:
The EC also seems to be unaware of government plans to bring in uniformity in the two Acts, the official said, adding that the Commission is waiting for the contribution reports to be filed by the political parties for the financial year 2017-18.
The EC will decide the future course of action only after evaluating the contribution reports, the official said.
The Quint had earlier reported on the EC’s strong objection to the amendments made to introduce electoral bonds.
What Does Section 29C of the Representation of the People Act say?
In order to curtail the use of black money and money laundering in political funding, the Election Commission, in 2016, recommended that the law be amended to bring down the limit of anonymous political donations to Rs 2,000.
Accordingly, Finance Minister Arun Jaitley said that “political parties receive most of their funds through anonymous donations which are shown in cash”. Section 13 A of Income Tax Act was amended and it was announced that political parties will not accept cash donations above Rs 2,000. The move was a bid to “cleanse the system of political funding in India” and was carried out in accordance with the suggestion made by the Election Commission,” Jaitley said.
In series of reports, The Quint has exposed the loopholes in the electoral bonds – that make it possible for the government to make their own political funding opaque, while allowing donors of the other political parties to be tracked.
What Does the Amended Section 13 A of the Income Tax Act say?
In a letter from the EC to the Ministry of Law and Justice in May 2017, the EC put forward a number of reasons why the amendments made in Acts to introduce electoral bonds should be reversed or modified.
In the same letter – exclusively accessed by The Quint – the EC pointed out the futility of the amendment of Section 13A of Income Tax Act because of non-amendment of Section 29C of the Representation of the People Act.
In objection to the amendment made to Section 13A of Income Tax Act, the EC said:
The Supreme Court in its judgment on the Gajanan Krishnaji Bapat & Anr vs Dattaji Raghobaji Meghe & Ors; 1995 SCC (5) 347 said:
But the Modi government seems to be doing just the opposite.
Clearly, the Modi government has a lot to do and undo in order to make political funding transparent.
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