Unveiling the Dynamics of Electoral Bonds in India

 

The issue of electoral bonds gained attention following the Supreme Court's decision to invalidate the government's scheme.The court ruled that the anonymity provision violated the Right to Information under act Article 19(A) of the Constitution. 


On February 15, 2024, the Supreme Court, comprised of a seven-member bench led by the Chief Justice, delivered a unanimous verdict declaring electoral bonds unconstitutional. The ruling called for an immediate cessation of the electoral bond system, citing violations of the Right to Information Act under Article 19(A) of the Constitution. The court highlighted concerns regarding transparency, noting that electoral bonds obscure the identities of corporate donors to political parties, thereby impeding voters' access to vital information on political funding. This lack of transparency, the court argued, undermines the electorate's ability to make informed voting decisions.

The verdict underscores broader apprehensions surrounding significant donations to political parties, raising questions about the potential for undue influence and fairness in electoral processes. Critics argue that the influx of financial resources may overshadow the importance of policy considerations in shaping democratic outcomes. 

The Need for an Electoral Bond 

The Union Government introduced the electoral bond scheme on June 17, 2017. This scheme serves as a financial tool during election campaigns, as the costs of campaigning have become increasingly expensive, ranging from 95 lakh to 5 crore. Donations for electoral bonds can be made starting from `1,000, `10,000, `1,00,000, '10,00,000, and `1,00,00,000 which can be purchased at the specified branches of the State Bank of India (SBI). In order to contest an election, a substantial amount of money is required not only for campaigns and advertisements, but also for organizing parties, running the office, and mobilizing support.

Impact on political funding 

The introduction of electoral bonds has raised concerns about the lack of transparency and accountability in political funding. The anonymity provided by these bonds has made it difficult to track the sources of political donations, potentially opening avenues for misuse of funds and a lack of transparency in political financing. 

Here are the reasons that economists are concerned about the electoral bond: 

According to experts, an exaggerated amount of political funding may cause the route of black money to significantly influence the policies and decisions of elected officials, which shapes the direction of governance and public interest.

  • One of the biggest disadvantages of corporate funding is the use of fake companies to funnel black money.According to retired professor Arun Kumar of Delhi Jawaharlal, he mentioned in an interview that India's GDP should not fall below 3.5. And India needs at least 62% GDP to survive the Indian economy. The existence of black money, which may pass through electoral bonds, may bring dishonest people and parties to power. 

  • Local media uncovers the troubling practice of political parties bribing voters with cash during elections, exposing the erosion of democratic values. These reports highlight the urgent need for transparency and accountability in electoral processes. By bringing attention to such misconduct, the media advocates for the preservation of democratic integrity, urging authorities to take swift action against those involved in electoral corruption.

  • Substantial financial contributions from corporations could potentially influence politicians. Depending on the results, politicians may prioritize the interests of these major donors, even if it comes to the detriment of regular citizens. Consequently, this could result in legislation and choices that favor corporations rather than what is truly beneficial for the public.

  • The central query revolves around how entities operating at a net zero profit margin can afford such substantial donations. This has sparked debates regarding the transparency and legitimacy of these financial transactions, particularly in the context of political influence and accountability.

  • Below is a compilation of companies that have donated electoral bonds with either no profits or profits below zero during the period of 2017–2023. Take a look at the list!


Categorize of company  which 2017-2023

Number of companies 

Total amount of bonds been purchased 

Sum of net profit 

2017-2023 in crores

Encashed percentage 


Category A: 

Donation includes of 33 companies 

which had less than zero or almost zero profit) 




33


581.5



-102901.58


74.7%

Category B:

 Donation amount higher than sum of net profits, 2016-2017 to 2022-2023 



6

646

30.36

93%

Category C: 

Donation amount positive but sum of direct taxes, 2016-17 to 2022-23 <= 0 

3

193.8

97.04

14.6%

Comments

Post a Comment

Popular posts from this blog

8 Free digital marketing tools for start up agency

Image
For a startup company, having a strong online presence is important, but it can be difficult with limited resources. Luckily, technology has created many opportunities for small businesses. To have a successful digital marketing campaign, you need to focus on things like good design, social media marketing, Google Ads, search engine optimisation, Google Analytics, and email marketing. In this article, we will talk about the best digital marketing tools that cover everything from design to analytics. Canva Without design, it is useless to run an ad on a social media platform. Designing is one of the most crucial aspects of designing an ad across various platforms like social media, display ads, blog post covers, and so on. Having an effective ad design ensures clarity and makes the audience easily understand the message. Working with complex tools like Illustrator and Photoshop, Canva made the process much simpler. One can use this tool to create customised designs of their own instead ...
Read more

Mamannan - A monotonous story that dominated Tamil cinema for over a decade, but still delivered an exceptional performance that was well worth it.

Image
  Vadivel,   who is predominantly known for his comedic roles that span decades. However, in this film, he played the role of a father who is a respected MLA in Kasipuram district yet a naive person who lives with the fear of upper caste people. In the movie, he requested that everyone take a seat so that they could speak with equality, but in reality, he stood in front of his district secretary, Rathnavelu, who belongs to upper caste. Director: Mari Selvaraj Cast: Udhayanidhi Stalin, Fahad Faasil, Vadivelu, and Keerthi Suresh Language- Tamil Genre: - Political/ Action Drama If you enjoy political drama films, this one is for you. However, in movies ranging from Devar Magan to Karnan, an enormous number of films based on minorities' castes have been produced. This film features excellent visual representations of communism and caste inequality that relate to the character. For instance, Keerthy Suresh's main goal was to provide free education to the poor, regardless of caste. ...
Read more

Evaluating Modi's Economic Vision: Has India Achieved Growth or Missed Opportunities?

Image
It’s nearly been a decade since Narendra Modi assumed office in the Indian administration and sought a third term in the 2024 general election. The party came to power in 2014 with a majority of votes in the election polls. In 2016, India became the fastest-growing economy, leaving behind China. Until 2016, India's GDP rate growth has been steady, achieving more than 7% for every quarter. Since mid-2016, economic growth started to decline, and in 2019, India’s economic growth fell to 4.5 percent. After the government introduced certain policies such as demonetization of 500 and 1000 and goods and services tax, COVID lockdown, which severely impacted its economic growth,. There is a continuous debate about economic growth under the Modi administration. Even senior party figures like economist and former minister Arun Shourie have criticized the government, labeling falsehood as a defining trait. This raises significant doubts about the economic performance under Modi's administr...
Read more