The recent Assembly elections in Tamil Nadu, Puducherry, West Bengal, Assam and Kerala saw a record-breaking sales of Electoral Bonds. A staggering sum of Rs. 695.34 crore was raised, marking the highest-ever for any Assembly elections since the scheme’s initiation in 2018.
What are Electoral Bonds?
Electoral Bond is a monetary instrument used for giving donations to political parties. These bonds can be issued in multiple denominations such as Rs. 1,000, Rs. 10,000, Rs. 1 lakh, Rs. 10 lakh and Rs. 1 crore. There isn’t a maximum limit to the bonds that can be issued. The State Bank of India is charged with the task of issuing and cashing these bonds, which are valid for fifteen days from the date they are issued.
How do Electoral Bonds Work?
Once an Electoral Bond is issued, it can be redeemed in the specified account of a registered political party. For a political party to be eligible to open current accounts for redeeming electoral bonds, they must be registered under Section 29A of the Representation of People Act, 1951. In addition, they should have managed to secure not less than 1% of the votes in the last general election to either an Assembly or Parliament.
Purchasing Electoral Bonds
Electoral Bonds can be purchased by any individual – provided they are a citizen of India, or incorporated or established within the country. The Central Government has deemed the bonds available for purchase ten days each in the months of January, April, July and October. An individual purchaser can buy bonds either singly or jointly with other individuals. Notably, the donor’s name is not included on the bond.
Controversies around Transparency
However, the Electoral Bond scheme has faced criticism due to its lack of transparency. The public remains unaware of who is donating to whom, and what is received in return. As it stands, only the government through its ministries, has access to this information. This lack of transparency raises concerns about potential corruption and the influence of money in politics.
Steps towards Accountability
Despite the criticisms, the Election Commission of India asserts that the scheme is a step forward from the earlier system of untraceable cash funding. Moreover, the Central Information Commission (CIC) – the primary body responsible for implementing the Right to Information Act 2005 – ruled that disclosing the identity of Electoral Bond scheme donors will neither serve any larger public interest nor will it adhere to the provisions of the Act.
While the Electoral Bond scheme has ushered in a new era of political financing in India, it also brings with it several challenges, most notably the need for greater transparency and accountability. As the scheme continues to evolve, the hope is that these concerns will be adequately addressed.
