ECI reminds parties to furnish electoral bond details by tomorrow
The Election Commission of India (ECI) on Tuesday reminded all political parties to furnish information regarding the donations they acquired through electoral bonds by 5:00pm on Wednesday. The came in response to a previous directive issued by the Supreme Court to the poll body to gather updated data on contributions made to parties via the electoral bond scheme until September 30, 2023. Introduced in 2018, electoral bonds are a means for anonymous individuals/corporations to donate money to political parties.
Why does this story matter?
Petitioners against the electoral bond scheme have argued that it could contribute to "information asymmetry" as only the ruling party has access to data on their sales and purchases. It could lead to the patronization of certain companies, too, they claimed. Earlier, political parties were obligated to disclose all donations exceeding Rs. 20,000, while no corporate company was permitted to donate more than 10% of its total revenue. However, electoral bonds have allegedly eroded transparency in donations.
Supreme Court's order on electoral bonds
The apex court's order aims to ensure transparency in political funding, especially as the 2024 Lok Sabha elections approach. On November 3, the SC issued an interim order to the ECI asking it to present updated details on donations received by Indian political parties through electoral bonds. A five-judge Constitution bench led by Chief Justice of India (CJI) DY Chandrachud, hearing petitions against the electoral bond scheme, has reserved the verdict. Notably, a similar order was given in April 2019.
What are electoral bonds?
Electoral bonds are anonymous and available in multiples of Rs. 1,000, Rs. 10,000, Rs. 1 lakh, Rs. 10 lakh, and Rs. 1 crore and can be purchased at approved State Bank of India (SBI) branches. Donors can give these bonds to a party or parties of their choice, which can opt to cash in such bonds within 15 days. Implemented by the Bharatiya Janata Party (BJP) government in 2018, the scheme faced opposition for keeping donors anonymous.
SC began hearing case last month
Last month, the SC transferred four petitions challenging the electoral bond scheme to the Constitution bench for a "conclusive verdict." It began hearing the same on October 31. To note, from March 2018 to July 2023, the electoral bonds facilitated the transfer of a whopping Rs. 13,000 crore to various political parties, with the BJP reportedly obtaining the majority of donations.
