Ban anonymous donations over Rs 2000 to parties: EC

"Anonymous contributions above or equal to the amount of Rs 2,000 should be prohibited," the EC recommendation said.

Ban anonymous donations over Rs 2000 to parties: EC

Amidst the ongoing heated debate of exemption to political parties in the wake of demonetisation, the Election Commission (EC) has now proposed that the limit for accepting anonymous donations be slashed from Rs 20,000 to Rs 2,000.

It is to be noted that if the proposal is accepted by the government, it will reduce the size of the window available to political parties to accept donations without having to reveal the donor and improve transparency in political funding.


Reportedly, EC, being led by Nasim Zaidi, also wants parties to maintain accounts for all donations, get their accounts audited and submit the audited books to it on an annual basis. The poll panel wants the government to make these changes by amending the Representation of the People Act, 1951.

"Anonymous contributions above or equal to the amount of Rs 2,000 should be prohibited," the EC recommendation said.

According to the reports, while explaining the reason behind the recommendation, EC said, "Many political parties get registered, but never contest election. Such parties exist only on paper. The possibility of forming political parties with an eye on availing the benefit of income tax exemption also cannot be ruled out. It would only be logical that the Commission which has the power to register political parties is also empowered to de-register in appropriate cases.”

The feeling in the EC is that if crores of citizens can be made to brave hardships due to demonetisation that targets black money, political parties too should be part of the clean-up.

It is to be noted that the EC's recommendations are already with the Law Commission.