Questions raised by making the Electoral Bonds scheme public: Five Facts, Five Takeaways

Source: The post questions raised by making the Electoral Bonds scheme public has been created, based on the article “Five Facts, Five Takeaways” published in “Times of India” on 16th March 2024.

UPSC Syllabus Topic: GS Paper 2 Governance – Important aspects of governance, transparency and accountability.

News: The article discusses the Supreme Court’s decision to strike down the Electoral Bonds scheme as unconstitutional. It highlights the need for transparency in political donations and raises concerns about the potential for corruption and unfair advantages in elections.

What are the facts and questions raised by making the Electoral Bonds scheme public?

Unconstitutional Scheme: The Supreme Court declared the Electoral Bonds scheme unconstitutional due to its lack of transparency.

High Volume of Funds: ₹12,679 crore in bonds were purchased, with ₹12,155 crore used by political parties. This highlights the scale of political funding involved.

Dominant Party Beneficiary: The Bharatiya Janata Party received over ₹6,000 crore, significantly more than other parties.

Donor Anonymity: Most donors are private, unlisted companies. For example, Future Gaming and Hotel Services Pvt Ltd was a top donor. This raises questions about the transparency of donor identities.

Financial Discrepancies: Some companies donated beyond their financial capacity, like a company donating ₹90 crore with net profits under ₹250 crore, questioning the motive behind such donations.

Potential Quid Pro Quo: Concerns arise about possible favors exchanged for donations, needing further investigation into donor-recipient relationships.

Integrity of Politics: The massive funds required for elections suggest difficulties for ordinary citizens to participate in politics, questioning the fairness and inclusivity of the political system.

For more information on Issues in Electoral Funding in India read article1, article 2

What should be done?

Implement Transparency: Introduce clear guidelines for disclosing donor identities and donation amounts, addressing the opaqueness criticized by the Supreme Court.

Monitor Donor Backgrounds: Scrutinize donors, especially private, unlisted companies like Future Gaming and Hotel Services Pvt Ltd, to understand their financial capabilities and motives.

Ensure Fair Political Funding: Address the imbalance shown by the ₹6,000 crore received by the Bharatiya Janata Party, aiming for equitable distribution among parties.

Investigate Quid Pro Quo Scenarios: Thoroughly investigate potential favors exchanged for donations, ensuring political integrity.

Reform Election Spending: Reform how campaign funds are spent, promoting legal and ethical practices to foster clean elections.

Question for practice:

Evaluate the impact of the Supreme Court’s decision on the Electoral Bonds scheme in terms of political transparency and election integrity in India.