Lalit Shastri

When it comes to contributions ensuring the confidentiality of donors is crucial. It’s, about striking a balance between transparency and the need to protect the identities of those who contribute. Lets imagine a company based in Kolkata making a donation to the Bharatiya Janata Party—how would the All India Trinamool Congress react towards that corporate house?

The key lies in strengthening the electoral bond system to address any controversies that may arise. This means making sure that these bonds cannot be transferred, thereby preventing money laundering and illicit funds or call it black money from entering the electoral process.

A Constitution Bench, headed by Chief Justice of India D.Y. Chandrachud recently completed hearings on 2 November reserving its decision on petitions challenging the validity of the electoral bonds scheme. The discussion focused on finding a balance between voters right to information and protecting donors confidentiality.

In a move the bench directed the Election Commission of India (ECI) to provide information on bonds received by political parties until 30 September within two weeks. However this information will be submitted in a cover.

The Solicitor General, defended the scheme by underscoring how donor anonymity, through bonds is necessary to prevent backlash from opposing political factions. He made it clear that previous government efforts to control cash in contributions had failed because donors insisted on keeping their identities secret.

On the hand those who filed the petition argued that the “right to know about a party’s funding is a fundamental right.” They saw bonds as “legalized bribes” claiming that they harm democracy and create an uneven playing field in elections.

As the Election Commission is responsible, for providing information on donations through electoral bonds by September 30 the country eagerly awaits a decision that could reshape the landscape of political financing. This decision must strike a balance, between transparency and safeguarding contributors’ identities.

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Introduction of the Scheme of Electoral Bond

The Government has notified the scheme of Electoral Bonds to cleanse the system of political funding in the country. The broad features of the scheme are given below:

1. Electoral Bond would be a bearer instrument in the nature of a Promissory Note and an interest free banking instrument. A citizen of India or a body incorporated in India will be eligible to purchase the bond.

2. Electoral bond would be issued/purchased for any value, in multiples of 1,000,10,000, 1,00,000,10,00,000 and `1,00,00,000 from the specified branches of the State Bank of India (SBI).

3. The purchaser would be allowed to buy electoral bond(s) only on due fulfilment of all the extant KYC norms and by making payment from a bank account. It will not carry the name of payee. Electoral Bonds would have a life of only 15 days during which it can be used for making donation only to the political parties registered under section 29A of the Representation of the Peoples Act, 1951 (43 of 1951) and which secured not less than one per cent of the votes polled in the last general election to the House of the People or a Legislative Assembly.

4. The bonds under the Scheme shall be available for purchase for a period of 10 days each in the months of January, April, July and October, as may be specified by the Central Government. An additional period of 30 days shall be specified by the Central Government in the year of the General election to the House of People. 5. The bond shall be encashed by an eligible political party only through a designated bank account with the authorised bank.