Report No. 170
Section 11G: (1) It shall be the duty of the executive committee to take appropriate steps to ensure compliance with the provisions of this chapter including holding of elections at all levels. The executive committee of a political party shall hold elections at national and State levels in the presence of the observers to be nominated by the Election Commission of India.Where considered necessary, the Election Commission may also send its observers at elections to be held at other than national and state levels.
(2) The executive committee of a political party shall maintain regular accounts of the amounts received by the party, its income and expenditure, have them audited and submit the same to the Election Commission as required by section 78A of this Act.
(3) A political party shall be entitled to accept donations except from the following sources:-
(a) donations from political foundations or foreigngovernmentsororganisationsor associations registered outside the territory of India or non-governmental organisations which are in receipt of foreign funds or from any other association, organisation, group which is in receipt of foreign funds or from a foreign national.
(b) donations from corporate bodies and companies except in accordance with the provisions of the Companies Act, 1956.