Triumph of Politicking

December 9, 196?
ectly related to the business of the company" but there was some doubt about their legality under the Act and the objects clause in the memoranda of companies. Section 293A cleared this doubt and set a maximum limit of Rs 25,000 or 5 per cent of a company's profit, whichever was higher, for political donations. The Opposition considered this amendment as a device to raise more funds for the ruling party and described it as an encouragement and recognition . of political corruption. Modest cynics thought it was a rather awkward way of getting white, as distinct from black, money for the benefit of party organisations instead of individuals. In the event, political donations from 126 public companies (for which data arc available) slightly exceeded Rs 1 crore in the last general elections. According to an 'Economic Times' study, three- fourths of this amount went to the Congress and the rest to the Swatan- tra.