Seeking to check the use of black money and money laundering in polls, the Election Commission has urged the government to amend laws to ban anonymous contributions of Rs 2,000 and above made to political parties.

While there is no constitutional or statutory provision on the receipt of anonymous donations to political parties, there is an “indirect partial ban” on anonymous funding based on a condition that a declaration of donations be provided for funds above Rs 20,000. This is specified under Section 29C of the Representation of the People Act, 1951.

A proposal by the commission says that “anonymous contributions above or equal to the amount of rupees two thousand should be prohibited”.

 “There is no relaxation in the tax scrutiny of political parties. This is a complete media creation. We will take strong action against those parties which misuse the system,” the finance minister said.

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