Probing fund sources of political parties
- Hueiyen Lanpao Editorial :: November 15, 2013 -

The sources of funds received by the political parties have always been kept enshrouded from public view.

The political parties claim "donation" as the sole source of funds they obtain for various purposes right from day-to-day affairs to major election campaigns.

Recently, the Government has decided to probe foreign funding for the Aam Aadmi Party (AAP) which is making its debut in the ensuing assembly election of Delhi under the leadership of activist-turned- politician Arvind Kejriwal.

The AAP has reportedly received huge funds from aboard for its first election fight against major political parties like Congress and BJP.

Home Minister Sushilkumar Shinde has stated that the government had received complaints against AAP for violating the provisions of the Foreign Contribution Regulatory Act (FCRA) that regulates the acceptance and utilization of foreign contribution, to prohibit it from being used in ways that are detrimental to the national interest

. Hitting back at the Government, the AAP retorted that it welcomes the probe and the same be done with Congress and BJP.

There is an allegation that the Congress Party has received a whopping Rs. 2000 crores from unknown sources. The BJP too is under the scanner of election reformists for its many unknown funding sources.

An analysis done by Association of Democratic Reforms (ADR) on Income Tax returns and statements filed by Congress, BJP, CPI-M, CPI, NCP and BSP with the Election Commission shows that between 2004 and 2012, these political parties received funding worth Rs. 3,675 crores through unknown sources.

The analysis shows that sources for over 75% of the funding received by political parties cannot be traced. This becomes very relevant in the light of recent events when the political parties were brought under the ambit of Right to Information (RTI) Act by a ruling of Central Information Commission (CIC).

Unfortunately, full transparency is not possible under the current laws, and it is only the RTI that can keep citizens informed.

Political parties are required to submit a statement of election expenditure to the EC containing details like total amount received by them as funds in the form of cash, cheques and demand drafts (DDs) among other things.

Political parties submit these statements providing information of funds collected from the date of announcement of elections till the date of completion of elections, which could be between three weeks and three months based on the notification issued by the EC.

ADR said, "Full details of all donors should be made available for public scrutiny under the RTI Act. Some countries where this is done include Bhutan, Nepal, Germany, France, Italy, Brazil, Bulgaria, the US and Japan. In none of these countries is it possible for 75% of the source of funds to be unknown, but at present it is so in India."

In order to strengthen political parties, elections and democracy in India, it should be made imperative for all political parties to provide information under the RTI Act, only then there can be a meaningful democracy in the country.