EC proposes capping of cash donations to political parties

Chief Election Commissioner (CEC) Rajiv Kumar wrote a letter to the law ministry proposing to cap cash donations to political parties on Monday.
In his letter written to Union law Minister Kiren Rijiju, CEC has proposed to cap cash donation at 20 percent or at Rs 20 crore whichever is lower, sources told ANI. The sources on Monday said that the Election Commission has proposed bringing down anonymous political donations from Rs 20,000 to Rs 2,000 to cleanse election funding of black money.
In the letter, CEC has recommended a slew of amendments to the Representation of the People (RP) Act.
According to the proposal, political parties are not required to report the cash received below Rs 2,000.
As per rules in force currently, political parties have to disclose all donations above Rs 20,000 through their contribution report that is submitted to the EC. The move comes in the backdrop of the poll panel

recently delisting 284 defaulting and non-compliant registered unrecognised political parties (RUPPs), declaring more than 253 of them inactive.
Earlier this month the income tax department conducted raids in multiple states as part of a pan-India tax evasion probe against certain registered unrecognised political parties (RUPP) and their alleged dubious financial transactions.
The activities have been taken by the department on a recent recommendation of the Election Commission which recently struck off at least 198 entities from its list of RUPP after they were found non-existent during physical verification.
The poll panel had announced that it was taking action against more than 2,100 entities, categorised as RUPP by it, for flouting rules and election laws, including those related to the filing of monetary contributions, failing to update their address and names of office bearers.