The Ministry of Home Affairs said on Tuesday that all political parties, including the ruling Bharatiya Janata Party, have been sent notices to disclose the foreign funds received by them. Last week, the Aam Aadmi Party, which was also sent the questionnaire, had accused the Centre of a “political witch hunt” and described the move as a danger to democracy.
As per norms
A senior Home Ministry official said the notices were sent as per norms prescribed under the Foreign Contribution Regulation Act (FCRA), 2010, which bars any political party from receiving donations from any “foreign company”.
Last year, the National Democratic Alliance government had amended the FCRA through the Finance Bill route, which allowed foreign origin companies to fund NGOs here, and also cleared the way for donations to political parties by changing the definition of “foreign companies”.
The amendment ensures that “donations made by such (foreign shareholding) companies to entities including political parties will not attract provisions of the FCRA, 2010”. Contributions made by Indian companies with foreign holdings up to the prescribed limit as per the extant Foreign Direct Investment policy will not be treated as foreign contribution.
The Representation of People’s Act bars parties from receiving foreign funds. Both the BJP and the Congress supported the amendment.
The Ministry has asked parties to give details of their sources of funding, including those from abroad or foreign business enterprises, an official said, adding that this was part of the routine communication sent to parties every year to ascertain whether they have violated the FCRA provisions.
