Q. With reference to the electoral reforms implemented in recent years, consider the following statements:
1. If the number of votes polled for None of the Above (NOTA) option is more than that polled for any candidate, then the polls are re-conducted.
2. The political parties cannot receive more than ₹2,000 as cash donations from an individual at a time.
3. Corporate contributions to political parties cannot be more than 7.5 per cent of the net profit of a company’s past three financial years.
4. Foreigners can contribute funds to the political parties by purchasing the electoral bonds.
How many of the statements given above are incorrect?
Exp) Option c is the correct answer.
Statement 1 is incorrect. Even if the number of electors opting for None of the Above (NOTA) option is more than the number of votes polled by any of the candidates, the polls are not re-conducted. And the candidate who secures the largest number of votes has to be declared elected.
Statement 2 is correct. In 2017 budget, the limit for anonymous cash donations by any individual to a political party has been lowered from ₹20,000 to ₹2,000. However, they are not required to inform the Election Commission of India the details of persons who donate under ₹2,000.
Statement 3 is incorrect. In 2017 budget, the limit on corporate contributions of 7.5 per cent of the net profit of a company’s past three financial years has been removed. Further, the obligation of the company to report such donations in its profit and loss account has also been lifted.
Statement 4 is incorrect. An electoral bond is like a promissory note that can be bought by any Indian citizen or company incorporated in India from select branches of State Bank of India. The citizen or corporate can then donate the same to any eligible political party of his/her choice. The electoral bonds may be purchased by a citizen of India or entities incorporated or established in India. It is not an instrument for foreign political funding.
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