An electoral bond is a financial instrument for making donations to political parties. According to the Electoral Bond Scheme, 2018, it is a bond issued in the nature of a promissory note, which shall be bearer in character. A bearer instrument is one which does not carry the name of the buyer or payee, no ownership information is recorded and the holder of the instrument (i.e. political party) is presumed to be its owner.
The scheme allows individuals, who are citizens of India, and domestic companies to donate these bonds — issued in multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore — to political parties of their choice. The Supreme Court of India on February 15, 2024, struck down the electoral bonds scheme for anonymous funding to political parties as “unconstitutional”.
So basically –
No cap on corporate donation to political parties. No transparency. Global funding for political parties. And intimidation and harassment of those who donate to the opposition.
Electoral Bonds – Mr. Jaitley’s brahmastra.
1. Removes all caps on corporate donations to political parties. Even loss making corporates can donate now, as a clear quid pro quo.
2. Removes all transparency of who gives which party how much. No more information on who is Adani donating to.
3. The Sarkaar will know who donates to the opposition. Intimidation much?
4. Bonds can be traded like cash, without any tracking, in exchange of cash for a limited period. Matlab 20 crore ke bond khareede koi, kisi aur ko cash (all black) me bech de, aur koi aur use donate kar de. Full anonymity guaranteed.
5. FCRA amendment already allows foreign companies to fund political parties.
The Great Indian Democracy Sale?
Will the judiciary stand up to this as well? Or will the state illogically use the Right to Privacy judgment to defend this?