The Supreme Court of India, on February 16th, imposed a ban on electoral bonds, calling them ‘unconstitutional’. Therefore, the court has instructed the State Bank of India to cease their issuance with immediate effect. This verdict came months before the Lok Sabha elections.
The electoral bond scheme was introduced in 2018 and turned out to be a major source of funding for political parties across India. But until it was banned the scheme undoubtedly brought about sixteen thousand crores to the different political parties.
These electoral bonds allow anonymous donations that had been a key component in political funding with few regional parties depending heavily on them.
In the queue of beneficiaries, the ruling party, the Bhartiya Janata Party stands at the top with about 55% of the share which is approximately Rs 6,565 crore in the last financial year. And this might shock the readers to know that the BJP’s electoral bonds constitute more than half of its overall income.
Undoubtedly, since the introduction of the electoral bonds the BJP’s income has surged today being one of the richest party in India. Meanwhile, the opposition party, Indian National Congress in the fiscal year 2018-19, saw a significant surge from 199 crore to 918 crore.
The Trinamool Congress (TMC) has received Rs 325 crore from electoral bonds in the fiscal year 2022-2023. Whereas DMK received Rs 185 crore in the fiscal year 2022-23.
The court has mandated the State Bank of India to disclose information regarding all purchased electoral bonds, thereby lifting the shroud of secrecy surrounding individuals who have contributed significant amounts to India’s political parties. However, this funding has already supported two general election cycles and numerous state elections.
