Cong rejects EC suggestions for transparency in party funding

Congress has said that accounting procedures prescribed by apex accountants' body ICAI for companies are not applicable to political parties as it rejected all 10 suggestions made by the Election Commission for transparency in party funding.
"Under the companies Act, every company is required to maintain its books of accounts, required for audit purposes in accordance with the standards prescribed by ICAI. These provisions do not apply to political parties," the Congress said in reply to EC suggestions.
The ruling party has rejected all 10 suggestions made by the poll body on issue of guidelines for bringing transparency in poll funding.

It said parties need to submit accounts duly verified by a Chartered Accountant as required under Section 139 of the Income Tax Act, 1961, which is being followed by it.
The EC had sought views of all 60 recognised national and state parties but only 11 of them have responded.
With the party holding huge amount of its funds in cash, Congress also rejected a proposal to issue receipts to all persons or companies making donations to it for elections, saying it is "neither practical nor possible".

"It should be left to the party to decide whether they want to deposit it in a bank or keep it in its office premises or use it for party purposes directly," it said.

"The proposed direction is difficult to implement in practice and is not under the ambit of Article 324 of the Constitution...It is neither practical nor possible in a fluid situation in the midst of an election campaign to issue receipts to each individual making such donations," Congress treasurer Motilal Vora said in response to a suggestion to give receipts to all contributors.
In a communication to the EC, the ruling party said it is also "difficult" to implement suggestions that all expenses or donations above Rs 20,000 be made through crossed cheques or bank transfer.