15 February 2024 was a landmark day for those who cherish value-based politics and want to end the corrupt political system in our country. In a unanimous decision, the Supreme Court’s five-member Constitution Bench ruled in favor of every challenge presented in the electoral bonds case, deeming the scheme unconstitutional. As a result, the State Bank of India (SBI) was directed to cease the issuance of electoral bonds without delay. Furthermore, the SBI was told to provide the Election Commission of India (ECI) with comprehensive details regarding the bonds sold, as well as the identities of both the donors and recipients involved.
Electoral bonds were introduced in India in 2018 to function as financial instruments similar to promissory notes, available for purchase by both companies and individuals in India through the SBI. These bonds could be subsequently gifted to a political party, enabling them to redeem the value of the bonds.
The strange thing was that while the names of the donors and recipients of the bonds were (by law) guaranteed complete anonymity raising serious concerns about accountability and the potential for misuse, the government portrayed it as a historic milestone in bringing transparency to political funding.
It was unadulterated gaslighting which has been the hallmark of this government from day one. Fortunately, some conscientious citizens and the higher judiciary saw through the game and helped restore some sanity in the discourse on the need for reforming India’s campaign for finance laws to ensure greater transparency and accountability in political funding.
Who gave how much?
On March 17, the ECI disclosed the contents of sealed envelopes received from political parties, containing details of donations received through electoral bonds. However, only a select few parties, including the DMK, AIADMK, and Janata Dal-Secular, opted to reveal the identities of companies purchasing their electoral bonds. The BJP’s electoral bond intake, exceeding Rs.8,700 crore, rivals the combined donations received by all other parties. Yet, the party has refrained from revealing the companies behind these bonds.
Similarly, Congress and Trinamool Congress, the second and third largest beneficiaries, have also chosen not to divulge this crucial information, citing a lack of access to it. In response, BJP contends that they neither possess nor are obligated to maintain such information. However, investigative reports by certain news portals have provided the names of the big donors who utilized the electoral bonds to give money to political parties.
Some of these names and the amounts they paid are as follows: (1) Future Gaming and Hotel Services (Rs.1,368 crore), (2) Megha Engineering & Infrastructures Ltd. (Rs.966 crore), (3) Qwik Supply Chain Pvt. Ltd. (Rs.410 crore), (4) Vedanta Ltd. (Rs.400 crore), (5) Haldia Energy Ltd. (Rs.377 crore), (6) Bharti Group (Rs.247 crore), (7) Essel Mining & Industries Ltd. (Rs.224 crore), (8) Western UP Power Transmission Company Ltd. (Rs.220 crore), (9) KeventerFoodpark Infra Ltd. (Rs.195 crore), and (10) Madanlal Ltd. (Rs.185 crore).
Lack of Transparency
Mainstream media is mainly focusing on the negative consequences of electoral bond schemes through anonymous political funding. From suspected quid pro quo deals to the disturbing proximity between investigated companies and the purchase of bonds worth hundreds of crores, the scheme has proven to be a breeding ground for unethical practices.
The fears of using shell companies and loss-making entities to funnel donations to political parties have unfortunately materialized, confirming the initial apprehensions of cynics. The waiver of the rule limiting political donations by companies has only worsened the situation, rendering the scheme legally questionable. While some details about donors are emerging, it is disappointing that major political parties have failed to disclose crucial information. The role of investigating agencies in this matter has also raised eyebrows, with suspicions of coercion to make political contributions. The disproportionate benefits received by certain parties, particularly the BJP, underscore the need to address the misuse of power and influence in political financing.
As we embark on another national election, it is imperative to continue the efforts to clean up political financing. Transparency in funding political parties is vital for maintaining the integrity of our democratic system, which should remain free and fair for all.
Value-based politics
The real issue that the electoral bonds scheme throws up and that has not been dealt with adequately in the discourse surrounding political funding is that of value-based politics. The virtuous elements of the country should unite and struggle for value-based politics and cleanse the political system of its ills and defects. In the recent meeting of Central Advisory Council of Jamaat-e-Islami Hind in Ahmedabad (dated 24 to 26 November 2023), one of the resolutions talked about value-based politics, saying, “This meeting of the Central Advisory Council of Jamaat-e-Islami Hind expresses deep concern over the continuous decline in the standard of politics of our country and the violation of democratic and moral values. The JIH Central Advisory Council also feels that the current opaque system of electoral bonds for election funding is causing an abnormal increase in the coffers of the ruling party and this imbalance is beginning to show during elections. This situation is not only weakening democracy in the country, but also aiding in the capitalists’ grip on power. The JIH Central Advisory Council demands the leaders of the political parties to follow value-based politics and especially not to allow the above-mentioned vices to flourish in their parties. The JIH Central Advisory Council demands the government to make the system of electoral bonds transparent and devise effective steps and rules to prevent excessive use of money during elections. This JIH Central Advisory Council also appeals to the people to improve this situation by playing their role and elect people who are morally sound, uphold democratic values and promote communal harmony in national and state elections.”
Regarding the way forward, JIH in its statement dated 16 February 2024, welcoming the SC judgment declaring electoral bonds unconstitutional suggested, “Now that the apex court has done away with electoral bonds, political parties should come together to enact legislation that addresses the increasing influence of financial power in elections, ensuring a fair and transparent electoral process. Jamaat-e-Islami Hind demands that the Election Commission of India (ECI) should introduce measures to ensure transparency regarding donations to political parties. Political parties should also present their accounts in the public domain. We are entering a very critical phase with the upcoming Parliamentary elections and it is important to keep the entire exercise free from money and muscle power to preserve our democracy.”