Decoding Electoral Bonds: Funding Transparency in Indian Elections?

Electoral bonds were introduced in 2017 by the Indian government to cleanse political funding. These are bearer instruments, similar to promissory notes, that can be purchased by donors from designated bank branches. Political parties can then encash these bonds through their verified accounts with the Election Commission of India (ECI).

Transparency vs. Anonymity

Proponents of electoral bonds argue that they promote transparency by eliminating cash donations, a major source of black money in elections. The use of banks ensures traceability of funds to a certain extent. However, the anonymity of the donor remains a cause for concern. Critics argue that this anonymity allows corporations and individuals with vested interests to influence political parties without public scrutiny.

Impact on Political Parties

While electoral bonds may reduce cash transactions, they haven't necessarily translated to a significant increase in transparency. The sources of funds remain hidden, making it difficult to assess the influence of big donors on political parties. Additionally, smaller parties with limited access to corporate funding may be disadvantaged.

Supreme Court's View

The recent Supreme Court ruling upheld the validity of electoral bonds but directed the ECI to publish details of the party-wise receipt of these bonds. This decision aims to bring some level of transparency to the system. However, critics maintain that publishing party-wise information doesn't reveal the original donors.

The Road Ahead

The debate surrounding electoral bonds highlights the ongoing struggles with political funding transparency in India. While the scheme aims to curb black money, the anonymity of donors remains a significant hurdle. Further reforms like mandatory disclosure of the original source of funds behind electoral bonds could be explored. Additionally, promoting public funding of elections could be a long-term solution for a more transparent and accountable political system.

Understanding the complex issue of electoral bonds is crucial for informed participation in Indian democracy.