In 2018, India introduced electoral bonds to enhance transparency in political funding. However, between March 2018 and March 2021, over ₹7,000 crores were funneled through these bonds, with the identities of donors and recipients largely hidden from public scrutiny. This opacity has sparked widespread debate: are electoral bonds truly a step towards transparency, or do they cloak the financial roots of political power? As the largest democracy grapples with this issue, it’s crucial to examine the data behind electoral bond data, understand their impact on democratic integrity, and explore potential reforms. Join us as we delve into the complex world of electoral bond data transparency, uncovering the facts that shape our electoral landscape.
Origin or Electoral Bond
The idea of electoral bonds was introduced in India’s 2017 Union Budget by then-Finance Minister Arun Jaitley to reform the opaque nature of political funding. Launched in March 2018, these bonds aimed to curb black money in elections and enhance transparency. Individuals and corporate entities can purchase these bonds from authorized banks and donate them to political parties anonymously. Between March 2018 and March 2021, over ₹7,000 crore worth of electoral bonds were sold, significantly changing India’s political funding landscape. The bonds, available in denominations from ₹1,000 to ₹1 crore, can be bought during specific government-notified periods.
The government contends that electoral bonds bring clean money into the political system, with donors using legal banking channels to ensure accountability and tax compliance. Political parties can only encash these bonds through their official bank accounts, creating an ostensible paper trail. However, critics argue that the anonymity feature undermines transparency, raising questions about the bonds’ effectiveness. The ongoing debate highlights concerns about balancing donor privacy with the need for transparency in political funding, questioning the true impact of electoral bonds on India’s democratic process.
Data transparency and SBI reports
Since the electoral bond scheme’s inception in March 2018, the State Bank of India (SBI) has been the exclusive institution authorized to issue and redeem these bonds. Handling over ₹7,000 crore in transactions between March 2018 and March 2021, SBI’s electoral bond data is pivotal for assessing the transparency and impact of electoral bond funding. Electoral bonds come in denominations of ₹1,000, ₹10,000, ₹1 lakh, ₹10 lakh, and ₹1 crore, available during quarterly ten-day purchase windows. Donors buy these bonds and anonymously donate them to political parties.
A five-judge Constitution Bench of the Supreme Court unanimously struck down the Centre’s electoral bond scheme which facilitates anonymous political donations for being unconstitutional. It underscored that the scheme violates the right to information under Article 19(1)(a) of the Constitution.
Who were the top 20 Electoral bond donors?
According to SBI data, lottery king Sebastian Martin’s firm Future Gaming and Hotel Services was the top donor to the scheme, purchasing bonds worth Rs 1,365 crore. Second-ranked Megha Engineering & Infrastructures donated Rs 966 crore, and Reliance-linked Qwik Supply Chain purchased bonds worth Rs 410 crore.
Since the electoral bond scheme’s launch in March 2018, a significant portion of donations has come from a small group of high-value contributors. State Bank of India (SBI) data shows that between March 2018 and March 2021, over ₹7,000 crore in bonds were transacted, with a majority of funds stemming from high-denomination bonds, particularly those valued at ₹1 crore. This indicates that large corporate entities and wealthy individuals are the primary users of electoral bonds, raising concerns about the potential influence of big money in politics.
While the anonymity of electoral bonds was designed to protect donor privacy, it has led to questions about the disproportionate influence of wealthy donors. Despite the government’s claims that these bonds promote clean and transparent political funding, the dominance of large donors suggests a need for closer scrutiny.
FUTURE GAMING AND HOTEL SERVICES PR | ₹12,08,00,00,000 |
MEGHA ENGINEERING AND INFRASTRUCTURES LIMITED | ₹8,21,00,00,000 |
QWIK SUPPLY CHAIN PRIVATE LIMITED | ₹4,10,00,00,000 |
HALDIA ENERGY LIMITED | ₹3,77,00,00,000 |
VEDANTA LIMITED | ₹3,75,65,00,000 |
ESSEL MINING AND INDS LTD | ₹2,24,50,00,000 |
WESTERN UP POWER TRANSMISSION COMPANY LIMITED | ₹2,20,00,00,000 |
KEVENTER FOODPARK INFRA LIMITED | ₹1,95,00,00,000 |
MADANLAL LTD | ₹1,85,50,00,000 |
BHARTI AIRTEL LIMITED | ₹1,83,00,00,000 |
YASHODA SUPER SPECIALITY HOSPITAL | ₹1,62,00,00,000 |
UTKAL ALUMINA INTERNATIONAL LIMITED | ₹1,35,30,00,000 |
DLF COMMERCIAL DEVELOPERS LIMITED | ₹1,30,00,00,000 |
MKJ ENTERPRISES LIMITED | ₹1,28,35,00,000 |
JINDAL STEEL AND POWER LIMITED | ₹1,23,00,00,000 |
B G SHIRKE CONSTRUCTION TECHNOLOGY PVT LTD | ₹1,17,00,00,000 |
DHARIWAL INFRASTRUCTURE LIMITED | ₹1,15,00,00,000 |
BIRLA CARBON INDIA PRIVATE LIMITED | ₹1,05,00,00,000 |
CHENNAI GREEN WOODS PRIVATE LIMITED | ₹1,05,00,00,000 |
RUNGTA SONS P LTD | ₹1,00,00,00,000 |
Which political parties received the most?
The Bharatiya Janata Party (BJP) was the biggest beneficiary of the electoral bonds scheme, with donations worth over Rs 6,000 crore in the last four years. Hyderabad-based infrastructure company Megha Engineering (MEIL) was the biggest donor to the BJP, with bonds purchased worth Rs 519 crore. Qwik Supply, an unlisted private company, donated Rs 375 crore, followed by Vedanta with Rs 226.7 crore and Bharti Airtel worth Rs 183 crore.
Since the electoral bond scheme’s inception in March 2018, there’s been a marked disparity in fund distribution among political parties. Data from the State Bank of India (SBI) reveals that over ₹7,000 crore worth of bonds were sold between March 2018 and March 2021. A significant portion of these funds has gone to a few major political parties, primarily benefiting the ruling party and several key opposition parties. This concentration of funds raises concerns about the scheme’s impact on political competition and fairness.
The dominance of a few parties in receiving electoral bond donations suggests that smaller and regional parties may need help to compete financially. This disparity potentially skews political competition, favoring well-established parties and undermining democratic equity. While the scheme aims to promote clean political funding, the uneven distribution underscores the need for greater transparency. Understanding which parties benefit most is crucial for assessing the scheme’s impact and ensuring a fair political landscape. The ongoing debate highlights the necessity for reforms to address these disparities and enhance transparency in political funding in India.
BHARTIYA JANTA PARTY | ₹ 60,60,51,11,000 |
ALL INDIA TRINAMOOL CONGRESS | ₹ 16,09,53,14,000 |
ALL INDIA CONGRESS COMMITTEE | ₹ 14,21,86,55,000 |
BHARAT RASHTRA SAMITHI | ₹ 12,14,70,99,000 |
BIJU JANATA DAL | ₹ 7,75,50,00,000 |
DMK PARTY IN PARLIAMENT | ₹ 6,39,00,00,000 |
YSR CONGRESS PARTY | ₹ 3,37,00,00,000 |
TELUGU DESAM PARTY | ₹ 2,18,88,00,000 |
SHIVSENA (POLITICAL PARTY) | ₹ 1,58,38,14,000 |
RASTRIYA JANTA DAL | ₹ 72,50,00,000 |
AAM AADMI PARTY | ₹ 65,45,00,000 |
JANATA DAL (SECULAR) | ₹ 43,50,00,000 |
SIKKIM KRANTIKARI MORCHA | ₹ 36,50,00,000 |
NATIONALIST CONGRESS PARTY PARLIAMENT OF India | ₹ 30,50,00,000 |
JANASENA PARTY | ₹ 21,00,00,000 |
ADYAKSHA SAMAJVADI PARTY | ₹ 14,05,00,000 |
BIHAR PRADESH JANTA DAL(UNITED) | ₹ 14,00,00,000 |
JHARKHAND MUKTI MORCHA | ₹ 13,50,00,000 |
SHIROMANI AKALI DAL | ₹ 7,26,00,000 |
ALL INDIA ANNA DRAVIDA MUNNETRA KAZHAGAM | ₹ 6,05,00,000 |
SIKKIM DEMOCRATIC FRONT | ₹ 5,50,00,000 |
RASHTRIYA JANTA DAL | ₹ 1,00,00,000 |
SHIVSENA | ₹ 1,00,00,000 |
MAHARASHTRAWADI GOMNTAK PARTY | ₹ 55,00,000 |
JAMMU AND KASHMIR NATIONAL CONFERENCE | ₹ 50,00,000 |
NATIONALIST CONGRESS PARTY MAHARASHTRA PRADESH | ₹ 50,00,000 |
GOA FORWARD PARTY | ₹ 35,00,000 |
The analysis of electoral bond data offers crucial insights into the financial landscape of political funding in India. The significant contributions received by major political parties underscore the importance of corporate influence in politics and highlight the need for greater transparency and accountability. To maintain public trust, it’s essential to strike a balance between protecting donor privacy and ensuring transparency. Advocating for stronger regulatory frameworks, such as mandatory disclosure of donor identities and limits on contributions, and leveraging technology like blockchain for transparent records, can enhance accountability.
Understanding who receives the most funds through electoral bonds allows us to work towards a more transparent and equitable democratic process. For further insights and detailed analysis of electoral bond data, stay tuned to our blog and engage with our latest posts.
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