2019 parliament elections are very different from other elections because of these two words “Electoral Bond”. Political parties usually received funding from the corporations and individuals in the form of donations. Until recently (2017), any political party can accept cash donations of any amount. However, if the cash donation exceeds 20,000 INR, then the name of the donors and other details should be revealed. This rule was changed in Finance Bill 2017; parties cannot accept cash donations above 2000 INR. However, names of the donors need not be disclosed. So now if any cash donation has to be made above 2000 INR, they can do it through Electoral bonds.
What are these electoral bonds exactly? Electoral bonds are like a promissory note issued by the State Bank of India in the denominations of RS.1000, RS.10,000, RS.1 lakh, RS.10 Lakhs, RS.1 Crore during first ten days of every month and all 30 days of a month specially specified by the central government. Any citizen or body incorporated in India can buy these bonds and donate to any political parties registered under Representation of the People’s Act, 1951 only after completing the KYC formalities. Political parties can encash their bonds within 15 days limit through their verified account. Here, two issues are to be noticed:
Through the cash donations there is a great chance of allowing black money to donate to the political parties which is dangerous, because there is no check and balance. But now the possibility of foul play in election funding is curbed because no cash is involved in high amount and donors have complied with KYC norms. The other options through which donors donate are also done with the bank channel.
So, this is one of the best electoral reforms made to attain transparency.
And the other is, the Supreme Court has asked political parties to submit the details of quantum of money received through electoral bonds, the details of the donor in a sealed cover to the Election Commission of India. The total political funding through electoral bonds can only be known. Recently EC has disclosed that over 2,254 crores worth of electoral bonds were sold in month of April, 2019 and that too in just 10 days.
To me, despite this, entire transparency cannot be achieved because the problem is with disclosures. Electoral bonds are anonymous, so the details of who has donated to which political party and how much individually are not known. And it is applicable for the corporate house as well. A case has also been filed in Supreme Court stating that the details of the donors should be revealed. RTI has disclosed that the denominations of lower than amount of 10 lakhs were sold less. I think salaried individuals or families cannot donate such big amounts of 10 lakhs and 1 crore denominations. So, it is the corporates who does. And there is no upper limit as such for the donations by an individual and corporate. Those who fund political party may seek some favours in return. It moves in a quid pro quo manner that is favour for favour. Being a democratic political system, the government has the accountability of allowing the entire transparency by disclosing the details of the donor like earlier.
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