BJP, Congress back corporate funding
Arun Singh said that corporate funding should be allowed as per the prescribed rules
By : DC Correspondent
Update: 2015-04-20 01:20 GMT
New Delhi: The two main national parties — BJP and Congress — have supported corporate donations for political parties even as several other parties have opposed it.
The differences on the issue came to the fore at a recent consultation on electoral reforms.
An Election Commission draft ‘outcome paper’ on its recent consultations on political financing and Law Commission of India’s recommendations on electoral reforms have said that there is a “general agreement on ban on corporate donations to political parties, candidates and electoral trusts (except dissent on this issue by the two national parties).”
BJP secretary Arun Singh, who represented his party at the day-long consultations, said that corporate funding should be allowed as per the prescribed rules. As per the rules, corporate contributions to political parties are allowed as long as the non-government company is three-years old, its aggregate contribution in every financial year is below 7.5 per cent of its average net profits during the three immediately preceding financial years, and it is authorised by a Board of Directors’ resolution.
AICC communication department in-charge Randeep Singh Surjewala, who represented Congress at the consultations, said there should be corporate funding in a transparent manner.
“We are in favour of corporate funding through cheques. Funding in cash will only give rise to black money. Cheque (payments) will ensure that the information on funding is in the public realm,” he said.