Lok Sabha Question No. 1834 (UNSTARRED), answered on 2020-03-02
Subject: Collection of Party Funds
Ministry: FINANCE
Asked by: Anumula Revanth Reddy

## Government of India Ministry of Finance

## Department of Economic Affairs

## LOK SABHA

## UNSTARRED QUESTION NO.1834

ANSWERED ON -02.03.2020

'Collection of Party Funds'

## 1834.  SHRI ANUMULA REVANTH REDDY :

Will the Minister of FINANCE  be please to state:-

- (a) The details of complaints against political parties related to collection of party funds in the last three years, party-wise along with the action taken thereon;
- (b) The details of specific cases of such complaints and the action taken related to the State of Telangana;
- (c) Whether the Government has taken meticulous steps for establishing a transparent political funding system in the country and if so, the details thereof;
- (d) Whether the Government is mulling to have State funding of elections as recommended by the Indrajit Gupta Committee; and
- (e) If so, the details thereof and if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR )

(a) & (b) The Government has been informed by the Election Commission of India (ECI) that no such complaints against any political parties related to collection of party funds has been received in the Election Commission of India (ECI) in the last three years. However as per the High Court direction vide order dated 19.1.2018 against CM No.1453/2018 and W.P (C)526/ 2018 between Shri Anumula Revantha Reddy versus Election Commission of India,  a letter  from Garikapati Mohan Rao, MP (Rajya Sabha)  enclosing therewith representation dated 18 th July,  2017 from Shri  A.  Ravanth  Reddy  MLA,  working  President,  Telugu  Desam  Party,  Telanagana  had  been dealt  in  the  Commission.    In  the  said  representation,  Shri  Anumula  Revanth  Reddy  has  made complaint  against  Telangana  Rashtra  Samithi  Party  for  collecting  large  sums  of  money  from individuals,  institutions  and  associations  in  return  of  undue  favour  from  TRS  party  under  the mask of Bangaru Kuli.

The  Commission  vide  its  letter  No.56/Complaint/2017/PPEMS  dated  12 th February,  2018 informed the petitioner that  the issues raised, as submitted in the High Court of Delhi, had been examined. Shri Anumula was advised to take up the issues raised by him in the representation dated 18/7/2017 and in the W. P. with the police authorities in the state or with the Income Tax authorities.  Further,      Shri  Anumula  Revanth  Reddy  vide  letter  dated  18/12/2018  and  31 December, 2018 has again raised the issue  before the Election Commission and has requested for a  copy  of  the  letter  forwarded  to  Central  Board  of  Direct  Taxes  relating  to  BangaruKuli  and copies  of  the  Contribution  and  Audit  report  of  TRS  Party  for  Financial  year  2017-18.  The

Election  Commission  vide  its  letter  No.509/2/2018-RCC  dated  5 th February,  2019  forwarded these complaints to Central Board of Direct Taxes  and informed Shri Anumula Revanth Reddy. Shri  Anumula  vide  his  letter  dated  20  November,  2019  referred  to  Commission's  letter  dated 12/2/2018 and has requested to furnish action taken report.  The Commission vide its letter dated 17 th February, 2020, informed the petitioner that the issue may be taken up with the concerned authorities i.e police and Income Tax Department

(c)    In order to discourage the cash transactions and to bring in  transparency in the sources of funding of  political parties, the Govt. has amended provisions of Section 13A of the Income Tax Act,  1961  vide  Finance  Bill,  2017  and  limited  anonymous    cash  donations  to ` 2,000/-.  The Government has introduced the 'Electoral Bond Scheme 2018' vide Notification No.S.O.No.29 (E)  dated  2/1/2018  to  establish  a  transparent  political  funding  system  in  the  country  with  well established audit trail.

(d) & (e) The Election Commission has informed the Government that it is not in favour of State Funding as it will not be able to prohibit or check candidates own expenditure or expenditure by others over and above that which is provided for by the state. The Election Commission's view is that  for  addressing  the  real  issues,  there  have  to  be  radical  changes  in  the  provisions  regarding receipts of funds by political parties and the manner in which such funds are spent by them so as to provide for complete transparency in the matter.

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