Modi government’s scheme had drawn flak from opposition, which had raised concerns that it would lead to an opaque poll funding process.
New Delhi: Electoral bonds worth more than Rs 1,000 crore have been issued since March 2017, an RTI reply shows.
The Modi government has drawn flak over the electoral bond scheme, which, according to the opposition, will make the poll funding process opaque.
The government’s reply to the RTI query filed by activist Vihar Durve says the State Bank of India — the only bank authorised to issue electoral bonds to political parties — has given out a total of Rs 1,056,73,42,000 worth of electoral bonds in the first year of the hotly debated scheme.
According to the reply, the maximum amount — Rs 382.7 crore — was issued in Mumbai, followed by Rs 231.12 crore in Kolkata and Rs 147.06 crore in New Delhi. Hyderabad is the only other city where bonds worth more than Rs 100 crore have been issued.
Other cities where electoral bonds have been issued include Chennai, Gandhinagar, Bengaluru, Guwahati, Chandigarh, Bhubaneshwar, Raipur and Jaipur.
Also read: Finance ministry’s own division shares EC’s concerns on electoral bonds & transparency
Controversial scheme
Launched in March, the scheme has been criticised by several political parties, including the Congress, which argue that it would lead to opaqueness in the election funding process.
According to the BJP’s audit and income-tax reports submitted to the Election Commission (EC) this year, the party was the biggest beneficiary of the scheme — bagging 95 per cent of the bonds issued until 31 March.
As per the most controversial provision of the scheme, the identity of the donor of electoral bonds is not revealed. The Congress has maintained that the scheme is designed to ensure that funds go the ruling party only.
According to Section 29C of the Representation of the People Act, 1951, all political parties must declare donations above Rs 20,000 to the EC every year. However, according to an amendment made by the government to the Act last year, it was proposed that the contributions received through electoral bonds would be excluded from its ambit.
Also read: Ex-info panel commissioner writes to President to stop Modi govt ‘attempts to dilute RTI’
The EC had also called the scheme “a retrograde step” — a concern which was upheld by the law ministry as well.
“This is a retrograde step as far as transparency of donations is concerned and this proviso needs to be withdrawn,” the poll panel had said in a letter to the law ministry last year.
The ECI – which is meant to ensure a level playing field – might wish to pursue this matter. Who is giving how much to whom should in fact be displayed on its own website.