NEW DELHI: The State Bank of India (SBI), the country’s largest lender, recently provided the details of all electoral bonds sold from 2019 to 2024 to the Election Commission of India (ECI), which is now being published on its website in a phased manner. In compliance with the Supreme Court’s directive, SBI shared the information with the poll panel on March 12 and presented the affidavit about the same with the apex court on March 13. Importantly, the top court had given the ECI time till March 15 to upload the data on its website. The electoral body has uploaded the ‘Disclosure of Electoral Bonds’ submitted by SBI into two sections on “as is where is basis”.
Electoral Bonds In Political Funding
Electoral bonds have emerged as a novel mechanism in the domain of political funding since their inception in 2017. They provided individuals and corporate entities with the opportunity to donate unlimited sums of money to political parties anonymously. Until a landmark Supreme Court decision in mid-February, the bonds were acquired from SBI in fixed denominations and handed over to political parties without the need for disclosing the donors’ identities, thus revolutionizing the funding landscape.
Who Can Buy Electoral Bonds?
Electoral bonds are accessible to individuals who are citizens of India or entities incorporated or established in the country. Both individuals and groups have the liberty to purchase these bonds either individually or jointly with other individuals.
Who Can Receive Funding Through Electoral Bonds?
Only political parties registered under Section 29A of the Representation of the People Act, 1951, and securing at least one percent of the votes polled in the last General Election to the House of the People or the Legislative Assembly of the State are eligible to receive electoral bonds.
How To Encash Electoral Bonds?
The encashment of electoral bonds is exclusively facilitated through authorized bank accounts held by eligible political parties. These parties can redeem the bonds only through designated banks within a specified period.
Which Bank Can Issue And Encash Electoral Bonds?
The Government of India has designated the State Bank of India (SBI) as the sole authorized entity for issuing and encashing electoral bonds through its specified branches during allocated sale phases.
What Is The Validity Period For An Electoral Bond?
Electoral bonds are valid for fifteen calendar days from the date of issue. Failure to encash the bonds within this timeframe renders them ineligible for payment to the beneficiary political party.
How Do Electoral Bonds Work?
These bonds, available in various denominations, can be procured from SBI branches during designated periods specified by the government. Upon acquisition, political parties can encash these bonds through their designated bank accounts within the stipulated timeframe.
Who Benefits From Electoral Bonds?
Political parties are the primary beneficiaries of electoral bonds, receiving contributions from public or corporate entities. The opacity surrounding donor identities has prompted calls for enhanced transparency and accountability in the political funding process.
How To Buy Electoral Bonds?
Eligible individuals and entities can purchase electoral bonds from specified branches of SBI in various denominations ranging from Rs 1,000 to Rs 1 crore.
Are Electoral Bonds Tax-Free?
Electoral bonds, while tax-exempt for individuals or entities, are subject to the provisions of Section 13A of the Income Tax Act. This provision governs the acceptance of donations by political parties.
Why Electoral Bonds Are Issued?
Introduced through the Finance Act, 2017, electoral bonds were purported to promote transparency in political funding by directing donations through banking channels. However, concerns have been raised regarding the opacity surrounding the sources of these funds.
Who Can Accept Electoral Bonds?
Legally registered political parties meeting specified criteria can accept electoral bonds within fifteen days of issuance.
Electoral Bonds Vs Electoral Trusts?
Electoral bonds, challenged before the Supreme Court, have supplanted electoral trusts as the primary mode of political funding. The distinction lies in the level of transparency offered, with electoral bonds prioritizing donor anonymity.
Do Electoral Bonds Come Under RTI?
A Supreme Court verdict deemed the electoral bonds scheme violative of the right to information, citing concerns about transparency and free speech. The anonymous nature of the scheme was identified as a barrier to accountability.
What Are The Concerns Regarding Electoral Bonds?
Critics have voiced apprehensions about electoral bonds, citing the potential for corruption and undue influence resulting from undisclosed donor identities. Calls for reforms aim to address these concerns and ensure integrity in the political funding process.
How Electoral Bonds Impact Political Funding?
The advent of electoral bonds has transformed political funding dynamics, providing a legal avenue for contributions while maintaining donor anonymity. However, concerns persist about the implications for transparency and accountability.
How Will Political Funding Work Now?
Despite challenges, political funding avenues remain open through direct donations and electoral trusts. However, stringent regulations and increased scrutiny are imperative to mitigate potential loopholes and ensure compliance.
How Much BJP And Other Parties Received?
The Bharatiya Janata Party emerged as the highest beneficiary of electoral bonds, encashing bonds worth Rs 6060.5 crore between April 12, 2019, and January 24, 2024. Other major parties, including the All India Trinamool Congress and the Congress, also received substantial sums through this mechanism.