The law forbids a foreign company to make any donation to - TopicsExpress

The law forbids a foreign company to make any donation to political parties even if it has an Indian subsidiary. Yet, the home ministry and the two leading parties, Congress and BJP, have all filed affidavits claiming that a political donation is allowed if the majority shareholding in the foreign company registered abroad is of an Indian. The affidavits were filed in August before the Delhi high court in response to a PIL filed by Association for Democratic Reforms (ADR) and retired civil servant EAS Sarma. The PIL alleged that Congress and BJP have for years been receiving donations to the tune of tens of crores from foreign companies through their Indian subsidiaries.

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