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Govt removes limits on corporate funds to political parties

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

Corporate Funds

Press Trust of India  |  New Delhi 

Govt puts limits on corporate funds to political parties

The government on Tuesday said the limit on maximum amount that a corporate could contribute to a political party had 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 the "maximum amount that a political party can receive from a company in cash has been removed" following an amendment through the Finance Act 2017.

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

FCRA prohibits political parties from accepting foreign contributions from any foreign sources, including companies.

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First Published: Tue, April 11 2017. 16:44 IST