ECI seeks restrictions on cash donations to political parties

• Chief Election Commissioner has suggested a slew of amendments to the Representation of the People (RP) Act, to increase transparency and accountability on part of the candidate.

Recent developments:

• The move comes in the backdrop of the poll panel recently delisting 284 defaulting and non-compliant registered unrecognized political parties (RUPPs).
• The Commission found that while donations reported by some political parties were nil, their audited accounts statement showed receipt of huge amounts, proving large-scale transactions in cash, below the threshold limit of ?20,000.

Proposal by the Election commission:

• To bring reforms and transparency in donations received by political parties.
• Reducing anonymous political donations to ?2,000 from ?20,000.
• Capping cash donations at 20% or a maximum of ?20 crores.

Other recommendations:

• The Election Commission (EC) has sought to make digital transactions or account payee cheque transfers mandatory for all expenses above ?2,000 to a single entity/person.
• EC wants every candidate to open a separate bank account for election purposes, route all expenses and receipts through this account, and furnish these details in their account of election expenditure.
• Presently, maintaining a separate bank account for poll expenditure is part of the instructions but it is not a part of the Conduct of Election Rules.
• No foreign donations creep into the funds of the parties as stipulated under the RP Act and the Foreign Contribution Regulation Act (FCRA), 2010.

About Election Commission of India:

• The Election Commission of India is an autonomous constitutional authority responsible for administering Union and State election processes in India.
• The body administers elections to the Lok Sabha, Rajya Sabha, and State Legislative Assemblies in India, and the offices of the President and Vice President in the country.

Related Constitutional Provisions:

• Part XV of the Indian constitution deals with elections and establishes a commission for these matters.
• The Election Commission was established in accordance with the Constitution on 25th January 1950.
• Article 324 to 329 of the constitution deals with powers, function, tenure, eligibility, etc of the commission and the member.