Is Foreign Funding of Political Parties illegal?

Is Foreign Funding of Political Parties is illegal?

• Recently Delhi HC reserved it’s order on a PIL filed by an NGO named “Association for democratic reforms”(ADR) which alleged that BJP and Indian National Congress parties have violated the Representation of People Act 1951 and The Foreign Contribution Regulation Act, 2010
• The alleged violation of aforesaid acts is on the contention that both parties have received funds from a foreign company-Vedanta Resources (UK based company).
• The government contends that funds were received from Vedanta’s subsidiaries in India and hence, funds are not received from a foreign entity.
•  It should be noted that, In India receiving funds from a foreign company for political parties is prohibited under Representation of People Act 1951 and The Foreign Contribution Regulation Act, 2010.

Exam Perspective:

1. Representation of People Act 1951
2. Electoral Reforms
3. RPA and FCRA
4. Funding of political parties