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23
March 2017
A
former senior bureaucrat has warned that the removal of the cap on company
donations to political parties and allowing companies to keep the names of the
parties confidential will spell disaster for the concept of free and fair
elections. The Total Investment & Insurance
Solutions
E.A.S.
Sarma, a former Secretary to the Indian government, said the latest amendment
to the Companies Act will open floodgates to the company donations to political
parties and taint the country's elections. The
Total Investment & Insurance Solutions
In
a letter to Prime Minister Narendra Modi on Thursday, he said the latest
Finance Act, introduced by Finance Minister Arun Jaitley and approved with
little discussion by the NDA-dominated Parliament, had belied his hope of
reforms to cleanse the electoral process.
The
amendment removed the cap on company donations and it allows the companies to
keep the names of the political parties confidential in their accounts.
The
retired IAS officer said there will be free-for-all for both domestic and
foreign companies to manipulate the electoral system. The Total Investment & Insurance Solutions
"It
is ironic that your government should once again choose the Finance Act as the
vehicle for the backdoor introduction of such a regressive and potentially
dangerous proposal to be approved by the Parliament with inadequate
discussion," wrote Sarma, who has been fighting for electoral and
democratic reforms. The Total Investment
& Insurance Solutions
"I
appeal to your conscience not to open the floodgates to company donations to
political parties, that too anonymous donations, as such a step will spell
disaster for the very concept of free and fair elections that lies at the core
of our Constitution," he said.
Sarma
referred to the letters written to Modi last year suggesting a number of
reforms to be undertaken by the government if it was earnest about its campaign
against corruption.
Sarma
had called for revoking the retrospective amendment to the Foreign
Contributions Regulation Act, 2010 (FCRA 2010), made through the backdoor of
the Finance Act, 2016, that opened the floodgates to foreign company donations
to political parties.
He had
also stressed the need to amend the Companies Act to prohibit companies from
giving donations to political parties.The
Total Investment & Insurance Solutions
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