NDA govt created avenues for money laundering: Oppn

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

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

Besides, the companies wil 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 wid ened the process of corporate funding to parties but also cre ated new avenues for large-scale money laundering,” it said.

CPI(M) general secretary Sita ram Yechury said now that the corporates do not have to declare their contribution and no limits on their contribution, the changes will trigger massive cor ruption.

Yecury said, more impor tantly, this paves the way for money laundering. For example a politician transfers his illega money to a corporate and the cor porate transfers it back to the same party.

Congress spokesperson Rajeev Gowda said, “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 trans parency for our democracy.”