Govt created avenues for money laundering: Oppn

NEW DELHI: The Centre’s move to relax conditions for donations made by corporate entities to political parties has evoked strong criticism from the opposition, which accused the BJP-led NDA government of creating “new avenues” for large-scale money laundering.

Through one of the 40 amendments moved in the finance bill, the government has proposed to remove the cap that barred companies from donating more than 7.5% of their average net profit to a political party. Till now, companies could contribute up to 7.5% of their average net profit in the past three financial years.

Besides, the companies will now no longer need to disclose the name of the political party to which they make the donations.

The CPI (Marxist) said in a statement that through this amendment to the Companies Act of 2013, corporates can now pay political parties an unlimited amount through the election bonds scheme without disclosing the beneficiary’s name.

“This government has not only widened the process of corporate funding to political parties but also created new avenues for large-scale money laundering,” it said.

CPI(M) general secretary Sitaram Yechury said this move has exposed PM Narendra Modi’s claim to bring transparency in political funding. Now that the corporates do not have to declare their contribution and no limits on their contribution, the changes will trigger massive corruption, he told HT.

Yecury said, more importantly, this paves the way for money laundering. For example, a politician transfers his illegal money to a corporate and the corporate transfers it back to the same politician’s party. “In one word, this is an atrocious” move by the BJP government.

The CPI said the BJP would be the biggest beneficiary of the amendment and demanded a rollback of the amendment.

“Even foreign companies can donate huge funds to parties and this will act as a severe threat to our national security,” it added.

The Congress said the electoral bonds will open the door to anonymous donations, crony capitalists and influence the policy outcome without any suspicion. “We will not know who contributed, we will not be able to follow them and find out who influenced what public policy and that is a dangerous development in terms of transparency for our democracy,” party spokesperson Rajeev Gowda said.

BESIDES, THE COMPANIES WILL NOW NO LONGER NEED TO DISCLOSE THE NAME OF THE POLITICAL PARTY TO WHICH THEY MAKE THE DONATIONS.