Supreme Court Ends Electoral Bonds Impact on Modi’s BJP

This move is not good news for Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP), as they were the biggest users of this system introduced in 2017.

The system, called Electoral Bonds, got challenged by the opposition and a civil society group. They argued that it kept the public from knowing who was giving money to political parties.

Here’s how it worked: a person or company could buy bonds from the State Bank of India and donate them to a political party.

According to the Association for Democratic Reforms (ADR), a group working on election funding in India, people and companies bought 165.18 billion rupees ($1.99 billion) worth of bonds up to November 2023.

Also Read: Supreme Court Ends Electoral Bonds Impact on Modi’s BJP

The Chief Justice, D.Y. Chandrachud, leading a five-judge bench, said, “Political contributions give a seat at the table to the contributor … this access also translates into influence over policy making.” They declared the scheme unconstitutional and banned issuing new bonds.

The BJP, in response, stated they are committed to ongoing reforms in electoral funding and will follow the court’s decision.

Previously, individuals could donate any amount in cash, and companies had limits based on their revenue. The bond system removed those limits, but the court brought back restrictions on corporate donations.

The court directed the State Bank of India not to issue more bonds, share identity details of buyers, and provide information on redeemed bonds by each political party.

The government had defended the policy, saying it reduced cash use in political funding by giving donors a confidential way to contribute. However, the court emphasized that corporate contributions can have a more significant impact on the electoral process.

Until March 2023, the BJP had received over half of the 120.1 billion rupees’ worth of bonds sold since their introduction, totaling 65.66 billion rupees.

(Information derived from REUTERS)

Also Read: Supreme Court Ends Electoral Bonds Impact on Modi’s BJP

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