No cap on corporate funds to political parties: Government

Donations to political parties by firms are governed by provisions in the Companies Act.     
Image for representationa purpose (Photo | Reuters)
Image for representationa purpose (Photo | Reuters)

NEW DELHI:  The government today said the limit on maximum amount that a corporate can contribute to a political party has been removed.     

Donations to political parties by firms are governed by provisions in the Companies Act.     

In a written reply to the Rajya Sabha, Minister of State for Corporate Affairs Arjun Ram Meghwal said following an amendment through the Finance Act 2017, "maximum amount that a political party can receive from a company in cash has been removed".     

"Section 154 of the Finance Act, 2017 amends section 182 of the Companies Act 2013," he added.     Section 182 of the Companies Act relates to contributions to political parties by firms.     

Besides, there is no proposal to review the law on foreign contributions to political parties under Foreign Contribution Regulation Act (FCRA), the minister said.     

FCRA prohibits political parties from accepting foreign contribution from any foreign source including overseas companies.

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