EC suggests reducing anonymous political aids from Rs 20,000 to Rs 2,000

New Delhi, Sep 20: The Election Commission has proposed bringing down anonymous political donations from Rs 20,000 to Rs 2,000 and cap cash donations at 20 per cent or at a maximum of Rs 20 crore to cleanse election funding of black money, sources said on Monday. Chief Election Commissioner (CEC) Rajiv Kumar has written a letter to Union Law Minister Kiren Rijiju recommending a slew of amendments in the Representation of the People (RP) Act, sources in the government said.

The proposals are aimed at ushering in reforms and transparency in donations received by political parties, and also the expenditure incurred by candidates trying their luck at the hustings, they said. The move comes in the backdrop of the poll panel recently delisting 284 defaulting and non-compliant registered unrecognised political parties (RUPPs), declaring more than 253 of them inactive.

The Income-tax department recently raided a number of such entities across the country on charges of tax evasion after the EC shared its report with its administrative authority, the CBDT. According to the fresh proposals, the sources said, the poll panel has batted for lowering the threshold limit for cash donations made to political parties from Rs 20,000 to Rs 2,000.

The poll panel has also proposed to limit cash donations at 20 per cent or at a maximum of Rs 20 crore to cleanse election funding of black money.

The proposed amendments will also lead to maintaining a separate account for receipt and payments related to elections by the candidate and the same has to be transparently disclosed to authorities as election expenditure.

Moreover, the Commission also wants every candidate to open a separate bank account for poll purposes which will have all the details related to all expenses and receipts as part of the election expenditure.