Electoral Bonds : Biggest scam in Indian History? : Explained in 15 mins

On 15th February 2024, the Supreme Court deemed the anonymous electoral bond scheme unconstitutional, sparking controversy over political funding in India. The court criticized SBI for not disclosing full data on donors and parties redeeming bonds. While some view electoral bonds as a safe political donation tool to curb black money, others see it as a major scam and legal extortion threat in Indian democracy.

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Electoral Bonds were introduced in the union budget of 2017 and 18 to address black money transactions used for political donations. Businesses have historically funded political parties, influencing policies that benefit them financially. Donating openly can lead to backlash or threats, prompting companies to donate in cash secretly.

Disadvantages of Cash Black Money Circulation & Introduction of Electoral Bonds Cash black money circulation in Indian economy affects political donations. Openly admitting to political donations has three main disadvantages: loss of donor reputation and brand value, stock dumping and investor confidence deterioration, and circulation of black money for funding. Electoral Bonds introduced in the 2017-18 union budget allow legitimate digital transactions for political funding without revealing donors' identities.

Usage & Beneficiaries Analysis Electoral bonds are issued in multiples (thousand to crore rupees) with no limit on purchase quantity. Only parties with minimum 1% votes can encash these bonds at authorized SBI branches through check or digital payment only. BJP emerged as top beneficiary by encashing highest amount among all parties followed by TMC and Congress.

Electoral Bonds and Potential Corruption Quid pro quo is a Latin phrase meaning 'something for something,' suggesting electoral bonds could be used for unfair favors like blackmailing companies to donate in exchange for leniency from authorities. The connection between companies purchasing electoral bonds and facing probes by investigative agencies raises concerns of potential extortion and corruption.

Challenges with Electoral Bonds Unlimited corporate donations through electoral bonds raise issues of violating free and fair elections, allowing shell companies to channel black money into politics. The anonymity of donors enables foreign influence on Indian elections, favoring big corporations over small players in political dominance.