The streets have been abuzz with the topic of electoral bonds recently.
So what exactly is an electoral bond📄❔
Electoral bonds are interest-free bearer bonds used for political funding in India. Political parties can receive anonymous donations from individuals and companies in fixed denominations, with the aim of promoting transparency and accountability in donations. The acquisition of these bonds requires KYC-compliant accounts and must be encased within a specific time frame.
The State Bank of India🏦 (SBI) is in charge of issuing electoral bonds in India. These bonds are available in denominations ranging from Rs 1,000 to Rs 1 crore and can be purchased through specific branches of SBI by individuals and corporate entities for making donations to political parties.
The National Democratic Alliance government led by Narendra Modi initiated electoral bonds in India on January 29, 2018, under the Electoral Bond Scheme 2018.
The top 5 parties that received the most donations💰:
- BJP: Rs 6,986.5 crore
- Trinamool Congress: Rs 1,397 crore
- Congress: Rs 1,334.35 crore
- BRS: Rs 1,322 crore
- BJD: Rs 944.5 crore
The top 5 contributors to electoral bonds🗎:
- Future Gaming and Hotel Services PR: Rs 1,368 crore
- Megha Engineering & Infrastructures Ltd: Rs 966 crore
- Qwik Supply Chain Pvt Ltd: Rs 410 crore
- Vedanta Ltd: Rs 400 crore
- Haldia Energy Ltd: Rs 377 crore
What exactly is electoral bond case❓
The Electoral Bonds case was started to question the legitimacy and legality of the Electoral Bond Scheme that was put in place in India. The case began with petitions questioning the constitutionality of the scheme. Particularly its impact on the right to information, transparency in political funding, and the potential threats it poses to democratic processes. The purpose of the case was to tackle these issues and determine the consequences of the Electoral Bond Scheme on election integrity, fairness, and transparency in governance in India.
The petitions in the Electoral Bonds case were filed by the Association for Democratic Reforms (ADR), Common Cause, and the Communist Party of India (Marxist) against the Union of India.
The following are key aspects of the Electoral Bond case:
- Questions about the constitutionality of the scheme, particularly regarding the right to information and the integrity of elections.
- Changes made to existing laws, like the Representation of the People Act, 1951, and the Companies Act, 2013, to establish the Electoral Bond Scheme.
- Criticisms of the scheme, citing risks such as hidden influence, lack of openness, potential for misuse, and fears of fostering corruption.
- Supreme Court interventions aimed at ensuring disclosure of information related to the purchase and utilization of electoral bonds by political parties.
In a recent ruling on the electoral bonds case, the Supreme Court⚖️, under the leadership of Chief Justice of India DY Chandrachud, has issued a directive to the State Bank of India (SBI) to reveal the unique alphanumeric numbers associated with the electoral bonds. This decision aims to enhance transparency by enabling the matching of donors to political parties.
Do you think it's necessary to improve transparency in political funding?
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