Finance Minister Announces Revival of Electoral Bonds, Supreme Court Declared Plan Unconstitutional

The Electoral Bond Scheme may face controversy again. Finance Minister Nirmala Sitharaman told Hindustan Times in an interview that if we come to power, we will bring back the Electoral Bond Scheme. For this, we will first take suggestions from major stakeholders. Just a while ago, Nirmala Sitharaman’s husband and renowned economist Parakala Prabhakar told a TV channel in an interview that the Electoral Bond Scheme is the biggest scam in the world. Congress leader Jairam Ramesh said that they will rake up the issue of bringing back Electoral Bonds again and mentioned how much loot they will do this time. Earlier, on February 15, the Supreme Court immediately imposed a ban on the Electoral Bond Scheme for political funding. The Supreme Court said – this scheme is unconstitutional.

Opposition Leaders’ Critique

Jairam Ramesh wrote on X – We know that BJP has looted 4 lakh crore rupees from PayPM. Now they demand to continue the loot. Just focus on these methods. PayPM: 1- Donate, take business. 2. Postpaid Launch – Give contracts, launch. For prepaid and postpaid launches – Rs. 3.8 lakh crore. 3. Post-read launch – collect weekly. Price of post-read launch – Rs. 1853. 4- Fake companies – Money laundering. Price of fake companies – 419 crore. If they win and bring back Electoral Bonds, how much will they loot this time?

Kapil Sibal said – I respect Nirmala Sitharaman. In an interview, she said that she will bring back the Electoral Bond. She also said that when this scheme was first introduced, transparency was kept in mind. The Supreme Court said that there is no transparency in it. They (the government) brought it in as non-transparent. Now the problem is that for this election, they have money, but they also know that if they lose, they will need money. I ask Mohan Bhagwat why he is silent on this issue.

Nirmala Sitharaman’s Husband Acknowledges Electoral Bonds as the Biggest Scam

The issue of Electoral Bonds is a very significant issue. The fight over Electoral Bonds is between BJP and the people of India. There is no relationship between BJP and other parties. This issue is becoming more and more intense now, and BJP’s control is slipping away. This issue has now reached the common people very rapidly, and every person is gradually realizing that this is not just India’s but the world’s biggest scam. I feel that taking into account the issue of election bonds, voters should give a strict punishment to the government.

States with No BJP Rule Face Discrimination: Parakala Prabhakar

I feel that not only Kerala, but many other states where BJP is not in power, face discrimination in economic matters with the central government. When you come to non-BJP ruled states, the central government tries to stop funds by the BJP government and should follow the rules of the Finance Commission. However, the government has found a way around this. The government receives ample funds from the states in the form of cess and surcharge. And cess or surcharge is not divisible in the Finance Commission. So, the central government delays giving this fund to the states. This fund is now Rs 40 lakh crore. That means the central government collects Rs 40 lakh crore from the states, then when the Finance Commission’s allocation is done, this fund is not deducted from the states. BJP may give these funds to the states it rules, but it can also withhold them with discretion.

BJP Receives Maximum Donations via Electoral Bonds

Since 2018, the Bharatiya Janata Party (BJP) has received the highest donations through electoral bonds. In the span of 6 years, the BJP has received a staggering amount of 6,337 crore rupees through electoral bonds. The Congress, on the other hand, received a donation of only 1,108 crore rupees.

What are Electoral Bonds?

In the 2017 budget, then-Finance Minister Arun Jaitley introduced the Electoral Bond Scheme. The central government notified it on January 2, 2018. It’s a kind of promissory note, also known as a banknote, that can be purchased by any Indian citizen or company.

If you wish to purchase them, you can get them from the branch of the State Bank of India you prefer. The purchaser can donate these bonds to the political party of their choice. However, the party must be eligible for such donations.

What’s the Whole Issue?

This scheme was proposed in 2017, but the implementation started in 2019. On April 12, 2019, the Supreme Court directed all political parties to submit all relevant information regarding electoral bonds in a sealed cover by May 30, 2019. However, the court did not stay this scheme.

Later in December 2019, the Association for Democratic Reforms (ADR) filed a petition to put a stay on the scheme. They expressed concerns, based on media reports, that the electoral bond scheme may overlook concerns related to the transparency of political funding by the government.

Why the Controversy?

When it was proposed in 2017, Arun Jaitley claimed that it would bring transparency to the funding of political parties and electoral processes. Critics, however, argue that electoral bonds do not disclose the identity of the purchaser, which could potentially be used as a means for corporate houses to influence elections. Furthermore, without disclosing their identities, these families can make significant donations to political parties.