The Central Information Commission (CIC), responsible for implementing the Right to Information Act 2005, has recently declared that disclosing the identities of donors for the electoral bond scheme will violate the Act’s provisions and will not adhere to the larger public interest. An electoral bond scheme allows citizens and corporations to buy monetary tools from the State Bank of India (SBI) and contribute them to political parties who can redeem them for money. The Association for Democratic Reforms reported that political parties received 12,452 electoral bonds worth Rs. 6210.39 crore till January 2020.
Key Observations by the Commission
The commission expressed its concern that revealing the names of donors and recipients might contravene the RTI Act’s section 8(1)(e)(j). This section exempts a public authority from providing a citizen with information available to someone in their fiduciary relationship, unless the competent authority believes it serves the larger public interest to disclose such information. Information about electoral bonds given to political parties is held by SBI in a fiduciary capacity.
Previous Rulings and Their Impact
Previously, in January 2020, the CIC directed the Centre to disclose the names of donors who wished to remain anonymous. However, this raised several concerns, including anonymity, black money, undermining transparency, and asymmetrical opacity.
Issues Raised by the CIC Decision
Anonymity is a major concern as neither the donor nor the receiving political party needs to reveal the source of the donation. In 2019, the Supreme Court ruled that all political parties receiving donations via electoral bonds had to submit details to the Election Commission of India.
Black Money and Corporate Donations
The elimination of the 7.5% cap on corporate donations, the removal of the need for political contributions in profit and loss statements, and the annulment of the provision that a corporation must be three years old, undercuts the scheme’s intent. This allows any struggling company to make unlimited anonymous donations to a political party.
Transparency Concerns
The CIC’s decision undercuts the fundamental principle of transparency in political funding. It conceals from public scrutiny the identity of moneybags and corporations, thereby raising concerns about asymmetric opacity as the government can always know the donor’s identity since the bonds are purchased through SBI.
About Electoral Bonds
The electoral bond is a financial tool for making donations to political parties. Issued by the State Bank of India, the bonds come in multiples of Rs. 1,000, Rs. 10,000, Rs. 1 lakh, Rs. 10 lakh and Rs. 1 crore, without any maximum limit.
Central Information Commission: Overview
The Central Government established the Central Information Commission in 2005 under the provisions of the Right to Information Act (2005). It consists of the Chief Information Commissioner (CIC) and up to 10 Central Information Commissioners. The President appoints these officials based on recommendations from a committee comprising the Prime Minister, the Leader of Opposition in the Lok Sabha, and a Union Cabinet Minister nominated by the Prime Minister.
Responsibilities and Powers of CIC
The CIC’s role is to receive and investigate complaints regarding information requests under RTI, 2005. The commission can order an inquiry if there are reasonable grounds. During an inquiry, the commission holds the powers of a civil court in terms of summons and requiring documents.