India pushed towards black money: PM Modi

NT Bureau, Agencies

New Delhi: A Supreme Court decision to scrap a controversial political funding system has pushed contributions to parties towards "black money", Prime Minister Narendra Modi said in remarks on Monday.

Supreme Court in February scrapped as unconstitutional a seven-year-old election funding system through instruments called "electoral bonds" that allowed individuals and companies to make unlimited and anonymous donations to political parties.

Corporate funding of parties is a sensitive matter and, while there is no suggestion that the funds from the bonds scheme were improper, opposition parties allege BJP used its powers to coerce funding.

In his most detailed defence of the scrapped system days before India begins voting for Lok Sabha elections, PM Modi denied the accusations and said companies had also donated to the opposition.

He said the system was more transparent but added that there was room for policy improvement.

"In decision-making, we learn and improve. It is very possible to improve in this too. But today we have completely pushed the country towards black money," Modi said in an interview to news agency ANI.

"And that is why I say everyone will regret it. When they will think honestly, everyone will regret it."