- In My Opinion
- Posts
- In My Opinion: Issue #11
In My Opinion: Issue #11
Inside India's Electoral Bonds Scheme - Transparency, Controversy, and the Clash
Nikhil Vallore
March 25, 2024
We published these three posts recently, give them a read and let us know what you think! 😍
Electoral Bonds
Unraveling the Saga of Electoral Bonds: A Rollercoaster Ride of Secrecy and Scrutiny
The Birth of Electoral Bonds:
The year is 2017 -in a bold move to revolutionise political finance, the Indian government introduces electoral bonds. These special instruments grant individuals and corporate entities the power to donate unlimited sums to political parties incognito. Purchased from select branches of the State Bank of India (SBI), these bonds were like mysterious envelopes of influence, awaiting their moment on the political stage.
Anonymity vs. Transparency:
Ah, the age-old dilemma of privacy versus accountability! Electoral bonds danced on this fine line, offering anonymity to donors while casting a shadow over the transparency of political contributions. Critics cried foul, questioning the wisdom of a system where the source of funds remained shrouded in secrecy, potentially paving the way for corruption and undue influence.
A Game of Denominations and Deadlines:
Like pieces on a chessboard, electoral bonds moved with precision and purpose. Available in denominations ranging from a modest thousand rupees to a staggering crore, these bonds had a shelf life of just 15 days. A ticking clock, a race against time for political parties to cash in their chips and reap the rewards.
The Supreme Court's Verdict:
But wait, plot twist! In a dramatic turn of events, the Supreme Court of India delivers a knockout blow to the electoral bond scheme in mid-February 2024. With a stroke of its judicial pen, the court deems the system unconstitutional, citing three cardinal sins: First, it deemed the scheme a violation of the citizens' right to information, arguing that transparency is the lifeblood of democracy. Second, it raised the specter of quid pro quo, warning of a world where favors are traded for funds, and democracy becomes a pawn in the hands of the powerful. And finally, it sounded the alarm on the specter of corporate dominance, cautioning against a future where big money drowns out the voices of the people.
Electoral Bonds Scheme Data: A Snapshot
Please note that the data provided below is based on the information available at the time of writing this newsletter. For the latest updates and data, please refer here
Total Bonds Purchased: 22,217 bonds worth ₹12,155.51 crore were purchased between April 12, 2019, and February 15, 2024, by approximately 1,260 companies and individuals.
Bonds redeemed by Political Parties: During this period, 20,421 bonds worth ₹12,769.09 crore were redeemed by 23 political parties.
Distribution of Redeemed Bonds: The Bharatiya Janata Party (BJP) emerged as the frontrunner, redeeming bonds worth ₹6,061 crore (47.5% of total redeemed value). The Trinamool Congress (TMC) followed with ₹1,610 crore (12.6%), and the Congress secured ₹1,422 crore (11.1%).
Top Donors: Future Gaming and Hotel Services from Tamil Nadu made the largest contribution of ₹1368 crore. Other notable contributors include Megha Engineering and Infrastructures Limited from Andhra Pradesh (₹891 crore), Qwik Supply Chain Private Limited (₹410 crore), Vedanta Limited (₹400 crore), and Haldia Energy Limited (₹377 crore).
Notable Contributors: Steel magnate Lakshmi Mittal, Bharti Airtel's Sunil Bharti Mittal, ITC, Mahindra and Mahindra, DLF, PVR, and several other prominent names contributed to various political parties.
Lessons Learned and Challenges Ahead:
As the dust settles on this whirlwind saga, we're left pondering the lessons learned and the road ahead. Can donor privacy coexist with political transparency? Will reforms pave the way for a fairer, more accountable system of political funding? The journey continues, with each twist and turn shaping the future of Indian democracy.
In my opinion, the dichotomy between donor privacy and political transparency presents a formidable challenge - one that demands careful consideration and thoughtful discourse. It's not a matter of labelling something as inherently good or bad, but rather acknowledging the nuances and complexities inherent in such discussions.
For the latest disclosures, please visit the official site of ECI here
Disclaimer: Note that the intention behind this newsletter is not to pass judgment or impose a particular viewpoint. Rather, it seeks to shed light on the various perspectives and arguments surrounding this contentious issue.
P.S. Don't forget to share this newsletter with your fellow folks! The more the merrier, right?
Reply