Political Contribution by Newly Incorporated Firms | 10 Apr 2024

Source: TH

Despite regulations prohibiting companies less than three years old from making political contributions, recent data reveals startling purchases of electoral bonds by newly established firms in India.

The Companies Act 2013 prohibits companies less than three years old from making political contributions, aiming to prevent shell companies from contributing funds into political parties.
- The 2017 amendment removed the cap on contributions but retained the three-year prohibition.
Section 182 of the Companies Act 2013 outlines penalties for contravention, including fines and imprisonment for officers.