Axe On Electoral Bonds: A Case Of Too Little, Too Late?
Allowing companies to “funnel money” to political parties without any oversight from shareholders denies the owners the ability to decide how their company should act in the political sphere.
Petitions were filed
How did the axe fall?
The Supreme Court raised several issues in its verdict, one of which was that the scheme violates the right to information under Article 19(1)(a), which guarantees the freedom of speech and expression. The court held that information on the funding of political parties is essential for voting. It also held that the RTI can only be restricted based on Article 19(2), which speaks of the reasonable restrictions
The Bharatiya Janata Party’s (BJP) defence was that political parties earlier received most of their funds through anonymous donations which were shown in cash. An effort, therefore, required to be made to cleanse the system of political corruption; the party also said that donors had the right to privacy. In the six years through 2022, the BJP earned Rs 5,271 crore via this funding tool, accounting for 57% of the Rs 9,200 crore raised through these bonds, according to a report by the Association for Democratic Reforms (ADR), based on data from the Election Commission. The share of the Congress, was 10%.
However, political pundits say the court decision may do little to damage the BJP, the main beneficiary of the funding, so close to the polls. Yogendra Yadav, a political activist and founding member of political party Swaraj Abhiyan, said while the court’s action was welcome, the decision was “unduly and extraordinarily” delayed, and it is too late now as the ruling party may already have taken advantage of the bonds. BJP, in any case, doesn’t have a paucity of funds, has deep pockets and collects its funding from multiple sources. Opposition parties were anyway not getting much donation through these bonds.