In a recent development, the Congress party has raised concerns over India’s Electoral Bond Scheme, alleging that it is designed to favor the ruling party and lacks transparency. The scheme, introduced in 2018 by the government with the aim of reforming the system of political funding, has been a subject of scrutiny and debate since its inception.
Under the Electoral Bond Scheme, individuals and corporates can purchase bonds from authorized banks and donate them to political parties of their choice. These bonds are issued in multiples of specific denominations and are available for purchase during designated periods. The scheme offers anonymity to donors, as their identities are kept confidential, and only the political party receiving the donation knows the details.
The Congress party has expressed concerns about the lack of transparency associated with the Electoral Bond Scheme. They argue that the anonymity granted to donors creates a secretive environment where the ruling party can potentially benefit from undisclosed contributions. The absence of disclosure requirements regarding the source of funds undermines the principle of a level playing field in electoral funding.
Moreover, the Congress party claims that data obtained from the State Bank of India (SBI) revealed a significant disparity in the amounts received by different political parties through electoral bonds. According to the data accessed by the party, between March 2018 and May 2021, the ruling party received a substantial majority of the total funds, indicating a potential bias in the distribution of electoral bonds.
In light of these allegations, it is crucial to consider additional figures and facts from our database:
- According to an analysis by Association for Democratic Reforms (ADR), a non-governmental organization working in the field of electoral reforms, the ruling party received over 60% of the total funds generated through electoral bonds in the first three phases of the scheme.
- The Reserve Bank of India (RBI), in response to an RTI application, stated that it had expressed reservations about the Electoral Bond Scheme before its implementation. The RBI highlighted concerns regarding the potential misuse of the scheme for money laundering and the lack of transparency in political funding.
- The Supreme Court of India, in April 2019, while hearing a petition filed by the Association for Democratic Reforms and the Communist Party of India (Marxist), directed political parties to submit details of donations received through electoral bonds to the Election Commission of India in sealed covers. However, the court did not stay the operation of the scheme.
The Electoral Bond Scheme continues to be a subject of debate, with proponents arguing that it provides a legal framework for political funding and protects the anonymity of donors, while critics, including the Congress party, assert that it lacks transparency and can potentially undermine the democratic process.
As this controversy unfolds, it is imperative for policymakers to address the concerns raised by various stakeholders, including opposition parties and civil society organizations, to ensure a more transparent and equitable system of electoral funding in India.
