As of February 16, 2024, the chapter on Electoral Bonds in India's political financing story has come to an end. The scheme, once hailed as a potential solution to the issue of opaque funding, has been deemed unconstitutional by the Supreme Court, marking the conclusion of a controversial experiment in Indian democracy.
What were Electoral Bonds?
Electoral Bonds emerged on the scene in 2018 as a novel approach to political funding. These bearer bonds, akin to promissory notes, allowed individuals and corporations to donate funds anonymously to registered political parties in India. The rationale behind their introduction was to enhance transparency and combat the influence of black money in political financing. Available in various denominations ranging from ₹1,000 to ₹1 crore, Electoral Bonds could be purchased from specified branches of the State Bank of India (SBI) and subsequently donated to eligible political parties within a prescribed timeframe. However, the anonymity features inherent in these bonds raised significant concerns regarding potential misuse and lack of accountability.
How did they operate?
The process of acquiring and utilizing Electoral Bonds was relatively straightforward:
Purchase: Individuals and entities possessing KYC-compliant accounts could procure Electoral Bonds from designated SBI branches using either cheques or digital payment methods.
Donation: Once acquired, the bonds had to be deposited into the designated accounts of registered political parties within a stipulated period of 15 days.
Encashment: Subsequently, the recipient political party was required to encash the bonds within a predefined timeframe.
Transaction details and concerns:
While the Electoral Bond scheme aimed to promote transparency, its anonymity clause hindered the full disclosure of transactional data. However, available reports suggest that Electoral Bonds worth over ₹6,800 crore were sold between March 2018 and March 2023, with the Bharatiya Janata Party (BJP) reportedly receiving the lion's share of donations through this channel.
Critics voiced apprehensions regarding the opaque nature of funding facilitated by Electoral Bonds, expressing concerns about its potential to influence policy decisions and undermine democratic accountability.
The demise of the scheme:
The curtain fell on the Electoral Bond saga on February 15, 2024, when the Supreme Court of India declared the scheme unconstitutional. Citing apprehensions regarding anonymity and the violation of transparency principles in political funding, the court directed the cessation of Electoral Bond issuance by the SBI and mandated the disclosure of past transactional details.
Conclusion:
The Electoral Bond saga, albeit brief, leaves an indelible mark on India's political financing landscape. While its purported aim of enhancing transparency remains subject to debate, the anonymity it afforded raised legitimate concerns about potential misuse and ethical governance. The ongoing legal discourse and potential legislative amendments will undoubtedly shape the trajectory of political funding in India for years to come.
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