1. Is there a ban on donations from foreign interests to political parties?

"Political parties entitled to accept contribution-Provided that no political party shall be eligible to accept any contribution from any foreign source defined under clause (e) of section 2 of the Foreign Contribution (Regulation) Act 1976."

Source: Representation of the People Act, 1951. 

"No foreign contribution shall be accepted by any--political party or office bearer"

Source: Foreign Contribution (Regulation) Act, 2010

Even when foreign contribution to political parties is banned, the Government of India changed the definition of a foreign company by amending the Foreign Contribution (Regulations) Act, 2010 through the Finance Bill 2016. 

The amendments include the following: 

“Provided that where the nominal value of share capital is within the limits specified for foreign investment under the Foreign Exchange Management Act, 1999, or the rules or regulations made thereunder, then, notwithstanding the nominal value of share capital of a company being more than one-half of such value at the time of making the contribution, such company shall not be a foreign source"

Source: Finance Bill 2016.