Q. With reference to Electoral Funding in India, consider the following statements:
1. The registered political parties securing at least 1% of the votes polled in previous General/Assembly elections are eligible to receive the Electoral Bonds.
2. The electoral bond can be issued to a maximum limit of Rs.1 Lakh.
3. The election candidates are prohibited to accept any foreign contributions.
4. The non-government companies cannot provide funds to any political party.
How many statements given above are correct?
Exp) Option b is the correct answer.
The methods that political party use to raise fund to finance their election campaigns is regulated by certain Statutory Provisions. This includes Section 29 A, Section 29B & Section 29C of Representation of People Act; Finance Act 2017, Foreign Contribution Regulation Act etc.
Statement 1 is correct. According to the Electoral Bond Scheme 2018, only the Political Parties registered under Section 29A of the Representation of the People Act, 1951 and which secured not less than one per cent of the votes polled in the last General Election to the House of the People or the Legislative Assembly of the State, shall be eligible to receive the money through Electoral Bonds.
Statement 2 is incorrect. The Electoral Bond Scheme 2018 mention that the bonds do not have a maximum limit and are issued in the multiples of Rs 1,000, Rs 10,000, Rs 1 lakh and 1 crore.
Statement 3 is correct. The Foreign Contribution (Regulation) Amendment Bill 2020, which regulates the acceptance and utilisation of foreign contribution by individuals, associations and companies. Under the Act, certain persons are prohibited to accept any foreign contribution. These include: election candidates, editor or publisher of a newspaper, judges, government servants, members of any legislature, and political parties, among others.
Statement 4 is incorrect. The contributions to political parties are governed by Section 182 of the Companies Act, 2013. It provides that a company that is not a government company and which is in existence for at least last three financial years may contribute any amount directly or indirectly to any political party registered under the representation of Peoples Act, 1951.
