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Contents
Source– The post is based on the article “How Supreme Court can redeem itself in India’s 65-year battle against electoral corruption” published in The Print on 17th September 2022.
Syllabus: GS2- Salient features of representation of people act.
Relevance– About electoral bonds
News– The article explains electoral bonds.
The roots of all political corruption lie in electoral funding. In 2017, electoral Bonds were legalised with the Union Budget taking effect.
The Supreme Court is going to hear this matter very soon.
What is the Supreme Court stand?
In 2019, SC passed an interim order. The interim order was indecisive. Since then, there has been a delay of three and half years in hearing the case.
In his interim order, SC observed that there should be some transparency. They asked political parties to submit the details of donation through these electoral bonds to the Election Commission in a sealed envelope.
How does it work?
A donor goes to the State Bank of India. He buys the electoral equivalent of a bearer cheque or bond. These are given away to the party of their choice. The party would deposit it into a designated bank account
What arguments were given in favour of electoral bonds?
The Union Finance Minister during its introduction conceded that it was a partial reform. It was the first step to resolve the issue of black money in electoral funding.
The parties have incentives in buying electoral bonds through electoral bonds as they were tax-exempt.
What are the issues with electoral bonds?
It brings anonymity to electoral funding. It takes away the voters’ right to know the source of electoral funding.
Parties make policies in favour of persons purchasing electoral bonds rather than voters who put their faith in these parties.
