1. Donations above ₹2,000 to political parties must be made through non-cash modes.
2. Political parties are required to report all donations exceeding ₹20,000 to the Election Commission of India.
Which of the statements given above is/are correct?
Statement 1 – Correct: As per rules on political donations, contributions above ₹2,000 cannot be made in cash and must be through banking or digital modes, aimed at reducing anonymous funding.
Statement 2 – Correct: Under Section 29C of the Representation of the People Act, 1951, political parties must submit a Contribution Report to the Election Commission of India for donations exceeding ₹20,000 to avail tax benefits.
Thus, both thresholds (₹2,000 and ₹20,000) operate differently − one regulates mode of payment, the other ensures disclosure and transparency.
1. Electoral Trusts can retain up to 5% of their annual funds for administrative purposes.
2. Electoral Trusts are permitted to undertake cash transactions while distributing funds to political parties.
Which of the statements given above is/are correct?
Statement 1 – Correct: Electoral Trusts are required to distribute at least 95% of the funds received in a year to political parties and can retain only up to 5% for administrative expenses.
Statement 2 – Incorrect: Cash transactions are not allowed in Electoral Trust operations. Both collection and distribution of funds must be through banking channels to ensure traceability and transparency.
Hence, only Statement 1 is correct.
1. Government companies are prohibited from making political contributions.
2. Foreign contributions to political parties are prohibited under the FCRA.
3. Companies must disclose political contributions in their Profit and Loss Account.
Select the correct answer using the code given below:
Statement 1 – Correct: Under the Companies Act, 2013, government companies are explicitly barred from making political contributions.
Statement 2 – Correct: Section 3 of the Foreign Contribution (Regulation) Act (FCRA), 2010 prohibits political parties and candidates from accepting foreign contributions.
Statement 3 – Correct: Section 182 of the Companies Act mandates that companies disclose political contributions in their Profit and Loss Account, including the amount and the recipient party.
Therefore, all three statements are correct.
1. A significant proportion of political party income is reported under “unknown sources” where donor identity is not disclosed.
2. There is a legal ceiling on the total expenditure that a political party can incur during elections.
3. Individual candidates contesting Lok Sabha elections are subject to prescribed expenditure limits.
Which of the statements given above are correct?
Statement 1 – Correct: A large share (around two-thirds) of party income is classified under “unknown sources,” where the donor is not publicly disclosed, reflecting gaps in transparency.
Statement 2 – Incorrect: There is no legal ceiling on the total expenditure by political parties, even though election spending is regulated in other ways.
Statement 3 – Correct: Individual candidates are subject to expenditure limits—for example, around ₹95 lakh for Lok Sabha elections in large states.
1. It aims to provide pucca houses with basic amenities to rural households living in kutcha or dilapidated houses.
2. Beneficiaries under the scheme are identified solely on the basis of Gram Sabha recommendations.
3. The Centre bears 100% of the cost of the scheme in all Union Territories.
Which of the statements given above are correct?
Statement 1 – Correct: PMAY-G focuses on providing pucca houses with basic amenities to houseless rural households and those living in kutcha/dilapidated dwellings.
Statement 2 – Incorrect: Beneficiary identification is not solely through Gram Sabha. It involves a three-stage process: SECC 2011 data, Gram Sabha validation, and geo-tagging. The word “solely” makes it incorrect.
Statement 3 – Correct: The Centre bears 100% cost in Union Territories (excluding those with legislature like J&K, which follow a different sharing pattern).
Select the correct answer using the code given below:
The “Waterfall Mechanism” under the IBC refers to the statutory order of priority in which proceeds from the sale of a liquidated company’s assets are distributed among stakeholders. This hierarchy ensures that certain claims—such as those of workmen and secured creditors—are paid before others like unsecured creditors or government dues. It is specifically relevant during liquidation, not during the resolution phase.
Option (a) – Incorrect: It refers to decision-making within the Committee of Creditors (CoC), particularly voting share, not distribution of liquidation proceeds.
Option (b) – Incorrect: It reflects the objective of insolvency resolution (preserving value and restructuring), whereas the waterfall mechanism applies when liquidation happens.
Option (d) – Incorrect: It relates to cross-border insolvency frameworks, which deal with jurisdictional coordination, not priority of claims.
Select the correct answer using the code given below:
The Corporate Insolvency Resolution Process (CIRP) is the core mechanism under the IBC, initiated when a default occurs. It can be triggered by either the creditor or the debtor. Once admitted by the NCLT, a moratorium is declared, and control of the company shifts to insolvency professionals. A Committee of Creditors (CoC) is formed, which evaluates resolution plans and decides whether to revive the company or proceed with liquidation within a time-bound framework.
Option (a) – Incorrect: CIRP is not debtor-exclusive; both creditors and debtors can initiate it, and creditor approval is central to the process.
Option (c) – Incorrect: It relates to regulatory or penal frameworks, whereas CIRP is focused on insolvency resolution, not punishment.
Option (d) – Incorrect: It describes the Pre-Packaged Insolvency Resolution Process (PIRP) for MSMEs, which is distinct from CIRP and involves pre-negotiated arrangements.