Electoral Bonds

Electoral bonds emerged as a financial mechanism introduced through amendments to the Finance Act, 2017, aimed at enhancing transparency in electoral donations according to the government. However, the Supreme Court ruled that the Electoral Bonds (EB) scheme, enacted in 2017, infringed upon individuals' right to information and free speech under Article 19(1)(a). The court emphasized the right to know the identity of political party funders. Electoral Bonds faced criticism for providing anonymity to donors. Here are some key aspects of electoral bonds prior to their prohibition:

Issuance: Electoral bonds were issued by the State Bank of India (SBI) at specific branches, available for purchase for ten days at the start of each financial quarter and an additional 30 days during general election years. Denominations: These bonds came in denominations of Rs. 1,000, Rs. 10,000, Rs. 1 lakh, Rs. 10 lakh, and Rs. 1 crore.

Eligibility: Any Indian citizen or entity incorporated in India could buy electoral bonds. However, only registered political parties receiving at least 1% of the votes in the preceding general or assembly election were eligible to receive donations through these bonds.

Anonymity: Donor identities remained anonymous, as the bonds did not disclose the donor's name, sparking concerns about transparency in political funding. Validity: Electoral bonds were valid for 15 days from issuance, and political parties could only encash them within this period.

Usage: Funds acquired via electoral bonds could be utilized by political parties for any legitimate purpose in accordance with India's political party regulations.

BOOM debunked a viral claim suggesting regional parties received more electoral bonds than the BJP, clarifying that the BJP received the majority of contributions. Additionally, the Supreme Court directed the State Bank of India to disclose Electoral Bond details by March 12, 2024 to reinforce transparency in political funding.