In the six years since the introduction of the 'Electoral Bonds' scheme, a staggering Rs 16,000 crore has been disbursed to political parties through these bonds. As elections loom on the horizon, the sale of electoral bonds has surged, with bonds worth Rs 1 crore being sold in significant numbers. In Mumbai, 3,844 bonds were sold, 3,333 in Hyderabad, and 2,844 in Kolkata.
The controversial electoral bonds scheme was initiated in 2018 under the Modi-led BJP government. It allows individuals, organizations, or entities to make donations to political parties through these bonds, aiming to bring transparency to political funding. The scheme has faced criticism for its lack of transparency, potentially leading to financial irregularities.
Previously, political donations exceeding Rs 2,000 required disclosure to the income tax department. Companies were limited to donating a maximum of 7.5% of their profits, with mandatory disclosure under the Companies Act. The electoral bonds scheme replaced these rules, offering anonymity to donors, and eliminating the need to disclose details, including the donor's name.
Critics argue that the scheme facilitates money laundering and provides a covert means for large corporate entities to donate to political parties. The surge in electoral bond sales during elections has raised concerns about the impact on political funding transparency.
Information obtained through the Right to Information Act reveals that Rs 16,000 crore has been channeled to political parties through 26,939 electoral bonds. State Bank of India, the designated seller of these bonds, has received Rs 13.50 crore as a fee for the printing cost and commission.
The lack of transparency in the electoral bonds scheme has drawn scrutiny, as it exempts the details of donors and recipients from disclosure under the Right to Information Act. The majority of funds under this scheme have reportedly favored the ruling BJP, sparking criticism from opposition parties alleging favoritism and lack of accountability.