In the seven years between 2004 and 2011, the Congress received over Rs 2,004 crore from donors; the BJP got about Rs 994 crore. Smaller and regional parties too got significant sums.

These amounts were declared by parties; however, the source of over 85 per cent of donations is not known. The parties say donors gave sums less than Rs 20,000, and need not be made public.

The Election Commission's move to make party funding more transparent has not found favour with the union law ministry.

Sources said the ministry recently wrote to the EC, saying its recommendations were not in conformity with Sec 29-C of the Representation of the People Act, 1951, which says parties only have to submit a list of donations above Rs 20,000.

The EC had recommended that anonymous donations should be prohibited, and receipt of funds through sale of "coupons" should be against proper receipts. It had also sought to bar parties from receiving funds from government firms or foreign entities.

The poll panel had said all donors, including those who contribute less than Rs 20,000, should provide PAN numbers.

Last year, the EC had written to the law ministry asking it to amend the format of reporting funds received by parties. It had suggested that such contributions should have audit reports attached, and parties should specify the amount received in cheque and in cash.

The EC's move came after accounts submitted by parties revealed that named donors constituted a very small fraction. Parties claimed thousands of crores came from small unnamed donors.

For instance, the BSP said it received a total Rs 172.67 crore in 2009-2011, but claimed that not a single donor gave above Rs 20,000.

WHAT EC WANTS

* PROHIBIT anonymous donations to parties or candidates.

* BAR parties from receiving funds from a govt company or foreign entity.

... contd.

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