Introduction
In the labyrinth of Indian politics, electoral bonds have emerged as a contentious issue, sparking heated debates and legal battles. These financial instruments, introduced in 2018, were ostensibly aimed at bringing transparency to political funding. However, their impact has been far from sanguine. In this comprehensive blog, we delve into the intricacies of electoral bonds, dissecting their origins, controversies, and recent legal developments
What Are Electoral Bonds?
Electoral bonds are financial instruments that allow individuals and corporations to make anonymous donations to political parties. Here’s how they work:
Issuance: The State Bank of India (SBI) acts as the authorized bank for issuing these bonds. Donors purchase these bonds in specified denominations (ranging from ₹1,000 to ₹1 crore) from designated branches.
Anonymity: Unlike traditional donations, electoral bonds shield the identity of the donor. The recipient political party can encash these bonds without knowing who contributed.
Redemption: Political parties redeem these bonds within a specified period, converting them into usable funds.
Controversies Surrounding Electoral Bonds
1. Anonymity vs. Transparency
The central debate revolves around whether electoral bonds enhance transparency or perpetuate opacity. Critics argue that anonymity undermines democratic accountability by allowing undisclosed corporate influence on political decisions.
2. Legal Challenges
Supreme Court Verdict: In a landmark judgment in February 2024, the Supreme Court declared the electoral bond scheme unconstitutional. The court emphasized that non-disclosure of donor information violates citizens’ right to information under Article 19(1)(a) of the Constitution.
Corporate Influence: The scheme faced criticism for enabling corporations to make unlimited donations without revealing their identities.
3. Recent Developments
Top Recipients: The Bharatiya Janata Party (BJP) emerged as the leading recipient of electoral bonds, redeeming bonds worth ₹6,061 crore. The Trinamool Congress and Congress followed suit with ₹1,610 crore and ₹1,422 crore, respectively.
Legal Queries: During the Supreme Court proceedings, key legal questions centered on the disclosure of bond details and the right to information.
Fresh Round of Bonds: Despite legal challenges, the Indian government announced a new round of electoral bond sales, further fueling the controversy.
Court Judgments and Their Impact
1. Striking Down the Scheme
The Supreme Court’s unanimous verdict struck down the electoral bond scheme as “unconstitutional and manifestly arbitrary.” It directed the SBI to reveal details of bond purchasers and redemptions by political parties.
2. Unmasking Corporate Donors
The court’s ruling aims to lift the veil of anonymity, ensuring that political funding is no longer shrouded in secrecy. Corporations that wield significant influence will now be held accountable for their contributions.
Conclusion
As electoral bonds continue to be a hot-button issue, India grapples with the delicate balance between political funding and transparency. The recent legal pronouncements signal a seismic shift, unmasking the hidden players behind the scenes. Only time will tell if this newfound transparency will reshape the contours of Indian democracy or merely scratch the surface of a deeper problem.