Funding of Political Parties and Electoral Bonds Disclosures

The Supreme Court’s recent landmark verdict has led to the disclosure of details regarding the funding of political parties through electoral bonds. Here’s the information based on the web search results:

• Details of Electoral Bonds Disclosure
  • The State Bank of India (SBI) has submitted the details of the buyers of the now-scrapped electoral bonds and the political parties that received them to the Election Commission, meeting the deadline set by the Supreme Court. The details were submitted on Tuesday evening, complying with the court’s order to disclose the details of electoral bonds by the close of business hours on March 12.

• Election Commission’s Responsibility
  • The Election Commission is now tasked with publishing the details shared by the bank on its official website by March 15, as per the Supreme Court’s order. This disclosure is a significant step towards bringing transparency to the political funding process.
• Background of Electoral Bonds Scheme
  • The electoral bonds scheme, introduced on January 2, 2018, aimed to provide an alternative to cash donations made to political parties, with the government emphasizing its efforts to bring transparency to political funding. The SBI issued electoral bonds worth Rs 16,518 crore in 30 tranches after the scheme was launched.

• Working of Electoral Bonds
  • Under the scheme, an Indian citizen or entity incorporated in India could purchase the bond, which could only be encashed by eligible political parties through authorized bank accounts, solely through the SBI. Only parties with 1% or more votes polled in the last parliamentary or Assembly election were eligible to encash electoral bonds. These bonds had no serial number or any other identifier to ensure anonymity.
• Implications of the Supreme Court’s Verdict
  • The Supreme Court’s February 15 verdict declared the Centre’s electoral bonds scheme as “unconstitutional” and ordered the disclosure by the Election Commission of donors, the amount donated by them, and recipients. This move is a significant step towards ensuring transparency in political funding.

In conclusion, the recent disclosure of details regarding electoral bonds marks a pivotal moment in the quest for transparency in political funding, as mandated by the Supreme Court’s landmark verdict.