Electoral Bonds : Transparency vs. Anonymity in Indian Elections

Supreme Court and Electoral Bonds: Transparency vs. Anonymity in Indian Elections : 

India’s vibrant democracy rests on the bedrock of free and fair elections. However, the opaque nature of political funding has long cast a shadow of doubt over the process. Enter electoral bonds, introduced in 2018, a scheme hailed by some as a step towards cleaner elections and criticized by others as a boon for corporate anonymity. With a crucial Supreme Court verdict pending, let’s delve into the complex web of electoral bonds and their impact on the Indian political landscape.

What are Electoral Bonds?

Electoral bonds are bearer instruments, akin to promissory notes, purchased by donors (mostly corporates) from authorized banks. These bonds, available in specific denominations, can be donated to any registered political party. The anonymity of the donor is maintained throughout the process, raising concerns about transparency and potential influence peddling.

Arguments for Electoral Bonds:

Proponents of the scheme argue for its several benefits:

• Curbing black money: Electoral bonds move political funding from the cash-based realm, reducing the use of illicit funds.
• Transparency: Details of electoral bond transactions are recorded and available for public scrutiny, though donor identities remain masked.
• Increased participation: Anonymity incentivizes corporate donations, broadening the pool of funding sources for political parties.

Arguments against Electoral Bonds:

Critics warn of the scheme’s detrimental effects:

• Lack of transparency: Donor anonymity hinders accountability and opens the door for undue influence by powerful corporations.
• Uneven playing field: Large corporations gain disproportionate advantage over smaller donors, potentially skewing campaign financing.
• Potential for corruption: Anonymity makes it difficult to trace suspicious transactions and hold corporations accountable for unethical practices.

The Supreme Court’s Role:

In 2019, petitions challenging the constitutional validity of electoral bonds were filed in the Supreme Court. The apex court is considering several key issues:

• Whether anonymity undermines transparency and hinders the right to information.
• Whether electoral bonds give undue advantage to corporates and erode electoral equality.
• Whether the scheme violates provisions of the Finance Act under which it was introduced.

The Supreme Court’s verdict, much anticipated, will have significant ramifications for India’s electoral landscape. A ruling upholding the scheme would solidify its place in the funding system, while a strike-down could necessitate a shift towards alternative, more transparent mechanisms.

Beyond the Courtroom: The Evolving Debate

The issue of electoral bonds transcends the legal realm, sparking crucial conversations about the ideal balance between transparency and anonymity in political funding. Finding a solution that fosters open, accountable elections while encouraging legitimate participation from diverse sources remains a crucial challenge for Indian democracy.

The Story of Electoral Bonds in India: A Timeline of Transparency and Controversy

The introduction of Electoral Bonds in India in 2017 sparked a complex debate centered around political funding, transparency, and anonymity. Here’s a timeline of their journey:

2017:

• February: Union Finance Minister Arun Jaitley proposes Electoral Bonds in the Union Budget 2017-18, aiming to cleanse the system of political funding and promote transparency.
• May: Electoral bonds are introduced through the Finance Bill 2017. They function as bearer instruments, similar to promissory notes, allowing anonymous donations to registered political parties.
• November: The Department of Economic Affairs releases the details of the Electoral Bond Scheme, specifying purchase rules and denominations.

2018:

• January: Electoral Bonds are officially notified for sale through select branches of State Bank of India (SBI).
• March: Electoral Bonds go on sale for the first time.

2019:

• General Elections: Electoral Bonds witness their first major utilization during the 2019 General Elections. Over 90% of political party donations are received through electoral bonds, raising concerns about transparency and potential corporate influence.

2020-2023:

• Continued Use: Electoral Bonds maintain significant popularity among donors, remaining the primary source of political funding for many parties.
• Criticism and Challenges: Concerns regarding anonymity, potential misuse by shell companies, and the lack of information about donors continue to be raised by activists, opposition parties, and a section of the judiciary.
• Legal Battles: The Supreme Court hears multiple petitions challenging the constitutional validity of the Electoral Bond Scheme, with a final verdict still pending.

2023:

• November: The Electoral Bond Scheme undergoes minor amendments, increasing the sale days from 70 to 85 in years with assembly elections.

Present and Future:

The debate surrounding Electoral Bonds remains unresolved. Proponents argue that they have curbed black money in politics, while critics point to the lack of transparency and potential loopholes. The Supreme Court’s final verdict and possible further reforms will determine the future of Electoral Bonds and their role in shaping India’s political landscape.

Additional Points:

• The Association for Democratic Reforms (ADR) conducted an analysis of donations received by political parties through electoral bonds. Their findings revealed that a small number of donors contribute a significant portion of the funds, raising concerns about potential concentration of power.
• The Reserve Bank of India (RBI) initially expressed reservations about the Electoral Bond Scheme due to concerns about money laundering and anonymity. However, it later agreed to facilitate the issuance of bonds through SBI.

Note: This article provides a general overview of the issue.

Also Read – The Rise of Korean Culture in India कोरिया: भारत की नई सांस्कृतिक प्रेरणा