The Supreme Court of India has declared the electoral bonds scheme, which allowed anonymous donations to political parties, unconstitutional. The scheme, launched in 2018 by Prime Minister Narendra Modi’s government, aimed to bring transparency to political funding but has faced criticism for doing the opposite. Critics argue that the scheme has made the funding process more opaque and has been challenged as a “distortion of democracy” in the Supreme Court.
The court ruled that electoral bonds violate citizens’ right to access information held by the government and directed the State Bank of India not to issue any more bonds, to provide identity details of those who bought them, and to give information about bonds redeemed by each political party to the Election Commission within a week. The court also urged the government to explore alternative schemes to curb the use of cash or “black money” in political funding.
The government defended the electoral bonds as a way to eliminate cash donations to political parties, which fund much of India’s elections. However, critics argue that the scheme is not entirely anonymous, as the state-owned bank has records of both the donor and the recipient, making it possible for the ruling government to access and potentially influence donors.
The Bharatiya Janata Party (BJP) has been the main beneficiary of the electoral bonds, receiving 57% compared to the main opposition Congress party’s 10%. The ruling has significant implications for the future of political funding in India.
This decision by the Supreme Court reflects a significant moment in India’s political landscape, as it signifies a potential shift in the way political funding will be conducted in the country. The controversy surrounding the electoral bonds scheme has led to a renewed discussion about transparency and accountability in political funding, which has been a longstanding issue in Indian politics. The outcome of this ruling could ultimately impact the future of political finance laws in India and set a new precedent for transparency and accountability in political funding.