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insightsonindia.com/2015/09/26/the-big-picture-rti-should-political-parties-be-in-its-ambit/
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It is therefore, necessary to introduce internal democracy, financial transparency and accountability in the
working of the political parties.
to ensure less influence of industrial houses on policy making: Most of the parties have almost 75% of their
income from unknown sources. Generally corporate and industrial houses give them funds to change
policies, give illegal clearance and to hamper their competitors interest. It may also hamper people and
national interest.
Political parties enjoy a stronghold over their elected MPs and MLAs under Schedule 10 of the Constitution.
The Schedule makes it compulsory for MPs and MLAs to abide by the directions of their parent parties.
It would be within the average voters fundamental right to information to know the financial details of political
parties.
Under Section 29A of the Representation of the People Act, 1951 all political parties must affirm their
allegiance to the Constitution of India and such allegiance is made compulsory for the purpose of registration
under sub-section (7) of Section 29A. Therefore, political parties so registered must furnish information to the
public under the right of information under Article 19(1) (a) of the Constitution of India, since right of
information has been held to be a part of freedom of speech and expression under Article 19(1)(a).
The Law Commission of India in its 170th Report on Reform of the Electoral Laws in May 1999 had
recommended transparency in the functioning of political parties.
Arguments showing the public character of political bodies:
The criticality of the role being played by these political parties in our democratic set up and the nature of
duties performed by them point towards their public character.
Indirect substantial financing by the central government, performance of public duty and Constitutional and
legal provisions vesting them with rights and liabilities.
National parties are virtually funded by the state as they are exempted from filing income tax returns. The RTI
Act says any non-governmental organisation substantially funded by government will be a public authority.
As per Section 29C of the Representation of People Act, 1951, all donations of and above Rs. 20,000/- made
to political parties are required to be reported to the income tax department. This obligation cast on the
political parties points towards their public character.
Section 80 GGB of the income tax Act provides that contribution made by an individual or company to a
political party is deductible from the total income of the assesse. This provision is exclusively applicable to the
political parties and is suggestive of indirect financing of the political parties by the State.
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