Monthly CA | Current Affairs of March for JKSSB, JKPSC, UPSC Exams - Click on Link Below To download
Download Link Below
Political parties are able to receive funding without disclosing the identity of the donor to the EC, IT department and the public. It has legitimised opacity and opened the floodgates for anonymous donations.
Accountability
1. People’s ability to track donations by big businesses and expose quid pro quo has been undermined.
2. EC finds it hard to ascertain the legality of the funding.
Foreign Influence
1. Indian subsidiaries of foreign companies are eligible to donate hence foreign powers can influence the electoral process.
Black Money
1. The bonds were introduced with the intent to curb black money.
2. This is alleged to be achieved by routing the donations through digital transactions.
3. On the other hand , IT act mandates disclosure of information only above 2000.
4. Hence large amounts were broken into small amounts less than 2000 and donated to escape the scrutiny of IT department.
Money Laundering
1. Amendments to the Companies Act in 2017 removed the cap of 7.5% on political contributions by a company as a percentage of its average net profits of the preceding three years.
2. This allows for black money to be easily routed through shell companies to purchase electoral bonds.
3. Both EC and RBI have expressed apprehensions on this problem.
