by Harish Gupta, National Editor, Lokmat Group
Special report
PM wants all cash donations to political parties be banned before Next Lok Sabha polls
Shah, Jaitley to evolve consensus among political parties
Cash donation limit was brought down from Rs 20,000 to Rs 2000 this Budget, introduced electoral bonds
Harish Gupta
New Delhi, March 22
The Modi government is contemplating to dispense with all cash donations to political parties and wants such donations to be made only through digital/cheques/drafts and other modes of transactions. All donations must have a trail rather than from unknown sources.
Sensing the mood of the nation and growing desire to root out political corruption, Prime Minister Narendra Modi has now floated the suggestion that cash donations to political parties be completely banned.
As part of cleansing political corruption, the Modi government has already brought down the maximum cash donation limit from Rs 20,000 to Rs 2000 by any individual in the current Union Budget. In his budget speech on February 1, Union Finance Minister Arun Jaitley referred to the Election Commission’s recommendation in December 2016 to ban anonymous contribution “above or equal to” the amount of Rs 2,000.
BJP president Amit Shah and Finance Minister Arun Jaitley have been sounded by the PM in this regard to evolve a political consensus among various political parties. Though publicly, some political parties including the Left have said that cash donations be banned. But the principal Opposition party, the Congress, has not expressed any opinion in this regard. Even other national and regional recognized political parties have come forward or demanded that cash donations be withdrawn.
Earlier, there was a restriction in place with regard to cash or anonymous donations in excess of Rs 20,000 by any person or company in a financial year under Section 29C in The Representation of the People Act, 1951.
The Commission had also suggested to the government to amend laws in order to allow tax exemptions only to parties that contest elections and win seats, either in the assembly or the Lok Sabha. The same was incorporated in the Union Budget this year.
Amit Shah said that “the BJP is working towards abolishing all cash donations and consult others.” He did not elaborate what he meant others. But it was explained by a senior party leader that BJP wants to bring in transformational changes and reforms in the governance of the country and polity and moving towards taking hard, bold and risky steps. “Demonetization and surgical strikes against Pakistan were bold decisions. If we can bring down the cash donation limit to Rs 2000 we will eliminate all cash donations as well”, said a senior general secretary. But it will take some time.
The BJP leadership is aware of some of the critical statements made by experts and learned people even when cash donation limit was brought down to Rs 2000 only from Rs 20,000 within three years of coming to power.
Modi is keen that all cash donations be banned and it should be done before the next Lok Sabha polls due in May 2019.
The government has already introduced a proposal to amend the Reserve Bank of India Act in order to enable the apex bank to issue electoral bonds in according with which the government shall be framing a scheme wherein a donor could purchase bonds from authorised banks against cheque and digital payments only. They shall be redeemable only in the designated account of a registered political party. These bonds will be redeemable within the prescribed time limit from issuance of bond.” When asked, Finance Minister Arun Jaitley said, “Lets wait.”
