In a landmark decision, the Indian Supreme Court delivered a verdict on Thursday, dismantling an opaque electoral funding system, sending seismic ripples through the country’s political landscape. Transparency advocates are optimistic that this ruling could unveil actors involved in a controversial form of political financing, potentially impacting national elections.
Chief Justice D Y Chandrachud led a five-judge panel that ruled the plan “unconstitutional” and ordered the State Bank of India (SBI), the only institution permitted to issue the bonds, to stop doing so. The Election Commission of India’s website will have to publish the identification details of bond buyers as well as details on the bonds that each political party has redeemed, according to a court order.
Key Points
- Court Verdict: Electoral bonds scheme declared unconstitutional, demanding transparency.
- BJP’s Dilemma: Ruling party faces scrutiny over anonymous funding, potentially impacting image and future elections.
- Transparency Champions: Activists hail the verdict as a victory for accountability and urge further reforms.
- Institutional Questions: Reversal of stance by key institutions raises questions about their neutrality.
- Elections on Horizon: Impact of the verdict on public perception and upcoming elections remains to be seen.
As a result of the court ruling, information about contributors who have covertly given political parties billions of dollars since 2017 is now being made public. This could enable almost one billion Indian voters to make informed decisions about what benefits they might have gotten in exchange.
The National Campaign for People’s Right to Information’s co-convener, Anjali Bhardwaj, stressed the need of the ruling in maintaining political party financial openness. She said: “Political funding is the fountainhead of corruption in India, and [electoral bonds] funneled an unlimited flow of ‘black money’ to political parties anonymously.”
The court’s decision challenges the BJP’s electoral strategy, having received almost 55% of the $20.3 billion worth of electoral bonds sold by the SBI. Opposition leaders perceive the verdict as a blow to the BJP, with allegations of legalizing political corruption. Brinda Karat, a leader of the Communist Party of India (Marxist), highlighted the judgement’s implications, suggesting the BJP would be held accountable for money received from corporations and the policies formed in return.
Pramod Tiwari, a Congress party MP, hailed the court verdict as a milestone moment, accusing the BJP of violating the Indian constitution. He characterized it as a “slap on the face of the BJP,” suggesting it would impact the party’s prospects in the upcoming national elections.
However, the BJP appears unfazed, with Ravi Shankar Prasad, a BJP leader, dismissing concerns and asserting that the court order won’t affect their standing. Critics point out that while the scrapping of electoral bonds may eliminate one controversial funding avenue, political parties still have other sources, including direct funding from corporations. In the 2022-23 financial year, the BJP received nearly 90% of all corporate donations, further solidifying its financial dominance.
For activists like Commodore Lokesh Batra, who fought against the electoral bonds scheme, the court’s decision is a cause for celebration. Batra, a transparency campaigner, emphasized the need for political parties to become more transparent about funding and uphold internal democracy.
Venkatesh Nayak, the director of the Commonwealth Human Rights Initiative, highlighted how opaque donations became more prevalent after the introduction of electoral bonds. He called on institutions like the Reserve Bank of India and the Election Commission of India to take a stand against such practices.
Parties cannot receive bonds in a subsequent tranche prior to the national election if the judgment is rendered too soon. The RBI and ECI have reversed their positions, which upset former Indian chief election commissioner SY Quraishi, who said that these organizations “must be feeling very awkward today.”
As a result, the Supreme Court’s ruling to invalidate the electoral bonds program represents a dramatic shift in the way that politics are funded in India. While proponents welcome the shift towards transparency, there is ongoing discussion about the political ramifications for the BJP. The findings of this ruling may alter public perception and expectations about political party finance as the country gets closer to important elections.