The dust has settled down in Delhi. AAP has swept the Delhi election and Kejriwal has once again become the Chief Minister. In the run-up to the elections, it was alleged that the party received dubious funds from bogus companies with faked addresses. This piece is not to defend any single party but to examine the question of election funding and of fake donors.
Several articles opine that State funding is not the solution. One option for election funding is to look at corporate. The corporate sector, over the years, has been funding parties, and in turn, often expects favours from the party when it comes into power. Similarly, the party feels obliged to its donors.
Can companies help in funding elections in a more transparent manner? Probably yes. The Companies Act requires certain classes of companies to mandatorily spend on Corporate Social Responsibility as a percentage of their earnings. Similarly, companies can be mandatorily required to contribute a percentage of their earnings as Corporate Election Responsibility. Donations would be required to be made to the Election Commission and not to individual parties. Donations can also be made by individuals to the Election Commission. The funds can be invested by the Election Commission in safe investments to enhance earnings. These funds can then be given to parties and independent candidates to fund their election campaign. The amount of money to be released by the Election Commission to the parties can be debated and deliberated on.
On the issue of companies with fake addresses making donations, it needs to be explored if it is feasible for the Registrar of Companies (RoC) to utilise the vast network of the Indian Postal Department to verify the Registered Office address of companies. The RoC, of course, could charge an additional fee from the company concerned. After receiving the information from the Postal Department, the RoC can issue the Incorporation Certificate after all other criteria have been fulfilled.
For India to leap forward, it is imperative that questions like these are faced, addressed and acted on.
