‘Foreign corporates could influence Indian elections’

The Election Commission of India (ECI) has told the Supreme Court that electoral bonds, contrary to government claims, wreck transparency in political funding.

Coupled with the removal of cap on foreign funding, they invite foreign corporate powers to impact Indian politics, it said in an affidavit filed in the apex court.

The ECI ripped apart amendments made to various key statutes through the two consecutive Finance Acts of 2016 and 2017.

It said these amendments would pump in black money for political funding through shell companies and allow “unchecked foreign funding of political parties in India which could lead to Indian politics being influenced by foreign companies.”

The poll body said it had, way back in May 2017, warned the Ministry of Law and Justice that these amendments “will have serious repercussions/impact on the transparency of political finance/funding of political parties.” It annexed the letters written to the Law Ministry, along with its 37-page affidavit filed in the Supreme Court on March 25, 2019.

“The Election Commission of India has time and again voiced the importance of declaration of donations received by political parties and also about the manner in which those funds are expended by them for better transparency and accountability in the election process,” it submitted. The affidavit was circulated on Wednesday by petitioner Association of Democratic Reforms.

It said the amendments virtually derailed ECI guidelines of August 29, 2014, requiring parties to file reports on contributions received.