In the last four years, polit ical parties have received over Rs 92 billion in donations, in the form of electoral bonds issued by the State Bank of India (SBI). The process of issuing electoral bonds by companies or individuals to raise funds on behalf of political parties is flourishing and is likely to touch the trillion mark this year, keeping pace with the booming Indian economy.
A whopping Rs 92.24 billion was realised in 17 phases between April 2019 and March 2023, from electoral bonds deposited for redemption and encashment at the SBI.
Average of 5.42 billion electoral bonds deposited in bank
According to the data obtained by activist Manoranjan Roy under the Right to Information Act (RTI), an average of 5.42 billion electoral bonds were deposited in the bank in each of the 17 phases "Electoral bonds are a dirty nexus between political parties and corporate entities, where donations are made surreptitiously This system will take corruption to a higher level in the country The names of donors should be disclosed for transparency" said Roy.
The RTI data shared by SBI shows that electoral bonds were issued in each quarter of the financial year, in four phases from 2019, with the exception of 2020 electoral bonds were issued in just two phases due to the pandemic lockdown and in six phases in 2022, with a total of Rs 92.24 billion being deposited in banks.
Ban sought on electoral bonds
The State Bank of India is the only commercial bank authorised by the Centre to issue electoral bonds. The Association for Democratic Reforms (ADR), a voluntary group working in the field of electoral reforms, has sought a ban on the sale of electoral bonds, while the CPI(M) has challenged it be fore the Supreme Court in separate petitions.
A total of 22,641 electoral bonds worth Rs 12,979 crore have been sold till date, according to the ADR. "About 12,226 electoral bonds worth Rs 1,226 crore are of Rs 1 crore denomination, which indicates that 94 per cent of the donors are from the corporate sector and 55 per cent of the electoral bonds are donated to national parties. Electoral bonds are favoured by all political parties and donors, becoming the most popular form of donations. We have also filed many review petitions in the court, but it is a pity that the matter is still pending," said ADR head Maj Gen Anil Verma (retired).
Name of donor, recipient was not shared
While declining to provide information about the beneficiaries and donors, SBI CPIO and Deputy General Manager M Kanna Babu said it was 'third party' information and exempted under section 8 (1) (e) (i) of the RTI Act.
Individuals, corporate entities and institutions can buy electoral bonds and political parties can get funds by redeeming these bonds at the bank. The name of the donor is not mentioned on the bond but kept confidential.
Only those political parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and which secured not less than one per cent of the votes polled in the last general election to the Lok Sabha or a state legislative assembly, shall be eligible to receive the bonds.
Electoral Bond Scheme (2018) challenged in Supreme Court
The bonds may be purchased by a person who is a citizen of India "or incorporated or established in India", the government had said in a no.1) statement last year. These have a 15- day validity and can be encashed by an eligible political party only through a bank account with the authorised bank.
The Modi government had issued bonds in 2018, to raise funds on behalf of political parties, which are called electoral bonds. The BJP government claimed that it would increase transparency in political funding. The Electoral Bond Scheme, 2018, notified by the Centre, has been challenged in the Supreme Court.
