Electoral bonds have once again been thrust into the spotlight as the State Bank of India (SBI) recently disclosed crucial data to the Election Commission of India (ECI). This revelation sheds light on the intricacies of political funding in India, raising pertinent questions about transparency, accountability, and the influence of corporate donations. In this article, we delve into the electoral bond data released by SBI, uncovering significant donors, amounts contributed, and the ensuing controversies.
Source:Dezerv
Electoral bonds were introduced in India in 2017, to revolutionize political funding by fostering transparency and accountability. Issued exclusively by the State Bank of India (SBI), these financial instruments offer a discreet channel for individuals and corporate entities to contribute funds to political parties. Available in various denominations ranging from one thousand to one crore rupees, electoral bonds can be procured from designated SBI branches during specified periods as notified by the government. Subsequently, political parties have the privilege of encashing these bonds through their designated accounts within a stipulated timeframe.
Two fundamental features underpin the functioning of electoral bonds:
The anonymity of donors in electoral bond transactions has been a subject of contention. While the Money Bill 2017 mandates political parties to disclose donors who contribute more than Rs 20,000 in cash, no such disclosure is required for donations made through electoral bonds. Concerns over possible influence trafficking and favour-seeking by big organizations through secret payments to political parties are raised by this lack of transparency. Furthermore, the lack of donor transparency erodes public confidence in the democratic process and the political parties' accountability to their voters.
Source:LawBeat
The Supreme Court addressed concerns about electoral bonds in a historic decision last month. According to the verdict, the SBI was ordered to stop issuing electoral bonds and provide the ECI with a list of political parties that have received them by March 6. Additionally, the SBI was directed to reveal purchase information, including as the denomination, buyer's name, and date of purchase. Additionally, details of each bond encashed were to be furnished. By March 15, the ECI was tasked with publishing this information on its official website. This significant order turned the whole focus on electoral bonds.
In a recent turn of events, following the Supreme Court's ruling, the State Bank of India (SBI) initially sought an extension till June 30, 2024, to fully comply with the directives. However, their request for an extension was swiftly rejected, underscoring the urgency and significance of the court's mandate. Subsequently, on March 12, amidst mounting pressure and public scrutiny, the SBI diligently fulfilled its obligation by submitting comprehensive details of electoral bonds to the Election Commission of India (ECI). This submission marked a pivotal moment in the ongoing discourse surrounding electoral bonds, as it provided unprecedented transparency into the intricate web of political financing in India.
The data provided by SBI revealed significant insights into electoral bond transactions:
This data reveals the significant contributions made by various entities, including those facing scrutiny for financial irregularities.
Source: The New Indian Express
The tale surrounding the electoral bonds took a fresh turn when the Supreme Court examined the State Bank of India's (SBI) disclosure standards regarding the unique numbers associated with bonds that were purchased and cashed starting on April 12, 2019. The SBI was severely criticized by the Supreme Court, which also demanded an explanation for why these crucial alpha-numeric IDs had been suppressed. The Court emphasized the significance of these unique identities, which serve as a crucial component in establishing a direct line of communication between bond purchasers and the political parties issuing the bonds.
Responding to these discrepancies, the Supreme Court issued a directive to the State Bank of India (SBI) to provide clarification by March 18, underlining the urgency of addressing the matter. The bench reiterated the importance of adhering to the guidelines outlined in its previous judgment, which emphasized the disclosure of all electoral bond details, including purchase dates, purchaser names, denominations, and crucially, the unique bond numbers. As the deadline for SBI's response approaches, the Supreme Court's intervention underscores the paramount importance of transparency and accountability in electoral financing. The outcome of this directive will have far-reaching implications for the integrity of India's democratic processes and the public's trust in the electoral system.
As the Supreme Court's scrutiny intensifies, the debate surrounding electoral bonds enters a new phase, highlighting the imperative of transparency and accountability in political financing. The forthcoming response from SBI will be closely watched, as it carries significant implications for the integrity of India's electoral processes and democratic principles. Ultimately, the outcome of this directive will shape the future of political financing in India, setting a precedent for transparency measures and accountability standards.
Understanding Electoral Bonds:
Electoral bonds were introduced in India in 2017, to revolutionize political funding by fostering transparency and accountability. Issued exclusively by the State Bank of India (SBI), these financial instruments offer a discreet channel for individuals and corporate entities to contribute funds to political parties. Available in various denominations ranging from one thousand to one crore rupees, electoral bonds can be procured from designated SBI branches during specified periods as notified by the government. Subsequently, political parties have the privilege of encashing these bonds through their designated accounts within a stipulated timeframe.
Key Features:
Two fundamental features underpin the functioning of electoral bonds:
- Anonymous Electoral Bonds: One of the defining characteristics of electoral bonds is the anonymity it affords donors. This anonymity shields contributors' identities from public disclosure, eliciting concerns regarding the lack of transparency and the potential for misuse or undue influence.
- Money Bill Classification: Electoral bonds were categorized as Money Bills, exempting them from certain parliamentary scrutiny processes. This classification sparked constitutional apprehensions, with critics questioning the scheme's democratic integrity and transparency.
Challenges Faced by Electoral Bonds:
The anonymity of donors in electoral bond transactions has been a subject of contention. While the Money Bill 2017 mandates political parties to disclose donors who contribute more than Rs 20,000 in cash, no such disclosure is required for donations made through electoral bonds. Concerns over possible influence trafficking and favour-seeking by big organizations through secret payments to political parties are raised by this lack of transparency. Furthermore, the lack of donor transparency erodes public confidence in the democratic process and the political parties' accountability to their voters.
Supreme Court Ruling and Implications:
The Supreme Court addressed concerns about electoral bonds in a historic decision last month. According to the verdict, the SBI was ordered to stop issuing electoral bonds and provide the ECI with a list of political parties that have received them by March 6. Additionally, the SBI was directed to reveal purchase information, including as the denomination, buyer's name, and date of purchase. Additionally, details of each bond encashed were to be furnished. By March 15, the ECI was tasked with publishing this information on its official website. This significant order turned the whole focus on electoral bonds.
SBI's Compliance and Data Submission:
In a recent turn of events, following the Supreme Court's ruling, the State Bank of India (SBI) initially sought an extension till June 30, 2024, to fully comply with the directives. However, their request for an extension was swiftly rejected, underscoring the urgency and significance of the court's mandate. Subsequently, on March 12, amidst mounting pressure and public scrutiny, the SBI diligently fulfilled its obligation by submitting comprehensive details of electoral bonds to the Election Commission of India (ECI). This submission marked a pivotal moment in the ongoing discourse surrounding electoral bonds, as it provided unprecedented transparency into the intricate web of political financing in India.
Key Data and Major Contributors:
The data provided by SBI revealed significant insights into electoral bond transactions:
- Total Bonds Purchased: 22,217
- Total Donors: 1,260
- Total Bond Donations: ₹12,769 crore ($1.5 billion)
This data reveals the significant contributions made by various entities, including those facing scrutiny for financial irregularities.
The intervention of the Supreme Court:
The tale surrounding the electoral bonds took a fresh turn when the Supreme Court examined the State Bank of India's (SBI) disclosure standards regarding the unique numbers associated with bonds that were purchased and cashed starting on April 12, 2019. The SBI was severely criticized by the Supreme Court, which also demanded an explanation for why these crucial alpha-numeric IDs had been suppressed. The Court emphasized the significance of these unique identities, which serve as a crucial component in establishing a direct line of communication between bond purchasers and the political parties issuing the bonds.
Supreme Court's Directive to SBI:
Responding to these discrepancies, the Supreme Court issued a directive to the State Bank of India (SBI) to provide clarification by March 18, underlining the urgency of addressing the matter. The bench reiterated the importance of adhering to the guidelines outlined in its previous judgment, which emphasized the disclosure of all electoral bond details, including purchase dates, purchaser names, denominations, and crucially, the unique bond numbers. As the deadline for SBI's response approaches, the Supreme Court's intervention underscores the paramount importance of transparency and accountability in electoral financing. The outcome of this directive will have far-reaching implications for the integrity of India's democratic processes and the public's trust in the electoral system.
As the Supreme Court's scrutiny intensifies, the debate surrounding electoral bonds enters a new phase, highlighting the imperative of transparency and accountability in political financing. The forthcoming response from SBI will be closely watched, as it carries significant implications for the integrity of India's electoral processes and democratic principles. Ultimately, the outcome of this directive will shape the future of political financing in India, setting a precedent for transparency measures and accountability standards.