The Election Commission of India has suggested a draft amendment, reducing the current cap of 20,000, which states that cash donations to political parties over 2,000 rupees cannot be made anonymously. According to those with access to the situation, it has also sought to limit cash contributions at Rs 20 crore or 20% (whichever is lower) of the total donations collected by a party.
Chief election commissioner Rajiv Kumar suggested amending the Representation of the People (RP) Act in a letter to law minister Kiren Rijiju in order to ‘cleanse political funding landscape.’
‘The first step was to take action against unrecognized parties. Now the Commission is moving to try reform the way recognised parties work and crackdown on black money and tax evasion,’ a person with familier of the situation stated.
Political parties are obligated to provide the poll watchdog with data about cash donations of 20,000 or more, including the origin of the donation.
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