Electoral Bond Scam: A Termite to Indian Democracy? Maybe!
Image Source: Countercurrents
Electoral bonds were a mode of funding for political parties for six long years, from their introduction in 2017 until February 15, 2024, when the scheme was finally curtailed by the Supreme Court due to discrepancies and forgeries that could penetrate under its guise. In this landmark judgement, which also invalidated amendments allowing unlimited political donations alongside the curtailment of the Electoral Bond Scheme, the Supreme Court initiated a new era of transparency in Indian politics by curtailing the persisting opacity in the Indian political landscape.
To provide a general overview, electoral bonds are akin to currency notes. Different electoral bonds could hold different denomination values; for example, there could be an electoral bond for 10,000 rupees, while another could be for 10,000,000 rupees. These electoral bonds could be purchased by individuals, groups, or corporate organisations from the specified branches of the State Bank of India and can be further donated to any political party that suits their choices. After 15 days, political parties can redeem these bonds interest-free and use the funds to support their campaigns and other election expenses.
The ruling party claimed to have introduced this scheme in order to make seamless cashless transfers easier for political funding and to curb the influx of black money. The party claimed that electoral bonds were being introduced to ensure that all the donations made to a party would be accounted for in the balance sheets without exposing the donor details to the public. The government said that electoral bonds would keep a tab on the use of black money for funding elections.
However, the fact that the electoral bond scheme did not mandate the revelation of donors gave space for perpetrators and shell companies to indulge in various corrupt activities under the garb of electoral bonds. The Reserve Bank of India had expressed apprehensions regarding the same back in 2017 only, despitethe fact that this scheme was tabled and approved.
The various revelations emerging from the data, now available in the public domain following the Supreme Court’s orders, suggest that significant scams and corruption were occurring under the guise of electoral bonds. The data revealed in regards to electoral bonds has brought into the limelight many shocking news stories, which underscores how this scheme has been exploited to make money by the many involved parties. There are endless companies involved in this scheme, including numerous pharmaceutical, construction, and beef-producing companies.
Reports also point out that this scheme has been used as a means to bribe the government to get tenders or cover up illicit businesses and tax evasions. An investigation undertaken by The Hindu has found that about 33 companies that have losses of over 1 lakh crore from 2016–17 to 2022–23 on their heads have donated approximately 582 crores through this scheme. In another investigation undertaken by The Quint, it was found that 14 companies out of the top 30 companies donating electoral bonds had faced raids by the ED. These call for serious contemplation on how much illegal practices and undue extortion have penetrated the garb of this scheme.
It is also pertinent to note that the Narendra Modi-led BJP, which introduced this scheme, was the biggest beneficiary of the scheme, receiving the highest donations of all other recipients through the electoral bonds. As per a report by the Economic Times, the BJP received the highest donations through electoral bonds, amounting to Rs 6,566 crore, which accounts for 54.77 percent of the total, followed by the Congress with Rs 1,123 crore, which is 9.37 percent, and the Trinamool Congress with Rs 1,092 crore, which is 9.11 percent.
This electoral bond scam not only points to the discrepancies and loopholes in the political funding process but also suggests that the influence of the crony capitalist class on the legislative process is growing tremendously. This, in turn, is surely a red signal alerting us to the rise of inequality and economic disparity in India in the years to come.
As per the recent World Economic Forum reports, India is one of the most unequal countries in the world, with the top 10% of the population holding 77% of the total wealth. The richest 1% of the Indian population owns 53% of the country’s wealth, while the poorer half jostles for a mere 4.1% of national wealth. Such reports suggest India is already struggling excessively due to the problem of rich people getting richer and poor people getting poorer in the nation. On top of that, the wealthier class gradually taking hold of the powers of the legislature will escalate the problems manifold.
The electoral bond scheme needs to be checked seriously. The delayed busting of this scam and the late revelations of the report have already caused much harm to the nation at large. As more and more scandals surrounding electoral bonds continue to unfold, it has become increasingly evident that this scheme has not only undermined the integrity of political funding but has also acted as a termite, weakening the foundations of Indian democracy.
One very important question that these electoral bond scheme scandals raise is: are the so-called representatives of the people actually representatives of “the people” or have they narrowed down to mere puppets in the hands of the capitalist class? It also raises serious doubts about the independence of the legislative body and the very essence of democratic governance, where representatives are meant to be accountable to the public at large. These series of doubts and questions need to be thoroughly considered and contemplated in order to safeguard the already dwindling strength of Indian democracy.
Team Profile
- Content Editor
- Sahanubhuti Krishnan is a dedicated student of Journalism at Delhi School of Journalism, University of Delhi. With a strong passion for political, economic, and social journalism, Sahanubhuti aims to explore and shed light on the important issues shaping our society. Equipped with a desire to inform and engage the public, Sahanubhuti seeks to develop their skills in researching, reporting, and storytelling to create impactful narratives that resonate with readers. Through their studies, Sahanubhuti strives to gain a comprehensive understanding of the complexities within the realms of politics, economics, and social dynamics, with the ultimate goal of making a meaningful contribution to the field of journalism. With a commitment to upholding ethical standards and a drive to create positive change, Sahanubhuti Krishnan is poised to make a mark in the world of journalism.
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