New Delhi, Jan 3 (IANS) BJP MP Nishikant Dubey on Saturday accused the Congress party of orchestrating the 1969 Companies Act amendments to ban cheque-based donations after parliamentary exposure of 1960-1969 corporate funds exclusively benefiting the party in exchange for favours. He alleged the party then reversed it in 1985 to facilitate both traceable and black money flows.
Sharing the copies of both the Bills in a post on X, Dubey said, "Congress Party and Corruption in Donations. When it came to light in Parliament that from 1960 to 1969, all businessmen had given donations only to the Congress party in exchange for getting work done, then, in a great hurry in 1969, the law was amended to increase the use of cash, i.e., black money, and cheques were shut down."
"Then, 16 years later, in 1985, the law was changed again to restart the game of cheques and black money. History itself is Chunar Fort," he added.
Attached images include scans of the 1969 Act prohibiting corporate political contributions under Section 293A, a 1985 parliamentary debate transcript debating the ban's repeal, and the 1985 Act reinstating donations up to 5 per cent of average net profits with disclosure requirements.
Before 1969, companies were legally allowed to donate to political parties, and during the 1960s, most corporate donations went to the Congress party, which was then politically dominant.
Parliamentary discussions and public criticism highlighted quid pro quo links between business houses and the ruling party under the licence–permit system.
In response, the Companies (Amendment) Act, 1969, introduced Section 293A, imposing a complete ban on corporate political donations, officially to curb corruption and business influence in politics.
However, the ban did not stop money from entering elections. Instead, political funding increasingly moved underground, with companies and parties relying on unaccounted cash and indirect channels.
Election costs continued to rise through the 1970s and early 1980s, exposing the limits of an outright prohibition without strong enforcement or transparency mechanisms.
In 1985, the Rajiv Gandhi government amended the law again, allowing companies to donate up to 5 per cent of their average net profits, with board approval and disclosure in accounts.
--IANS
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