Which among the following is NOT a correct statement about the Electoral Trusts in India?

Answer: [D] One Electoral Trust can donate funds to another Electoral Trust

An approved electoral trust can receive voluntary contributions and distribute the same to the political parties. Thus, the work of the trust is only two fold. Receive it and donate it to political parties. No other work or business is allowed. One trust cannot donate to other.

  • Come under the Electoral Trusts Scheme, 2013
  • Non-profit company established for orderly receipt of donations to political parties.
  • Should be a registered company for the purpose of Companies Act. Further, once its application to work as trust is applicable, it needs to be registered under Section 29A of the Representation of People Act, 1951.
  • Such companies should be registered only on or after 1 April 2012. Its name should end with electoral trust.
  • Its objective is not to earn profit but the sole objective is to distribute the contributions received by it to the registered political party
  • Each electoral trust has to have a permanent account number.
  • Who can donate?
  • Individual citizens, HUF, Association of persons.
  • Who cannot donate?
  • Non-citizens, foreigners and other electoral trusts.

This question is a part of GKToday's Integrated IAS General Studies Module