Ruling BJP got 95% of funds: Why there's an uproar over electoral bonds

ADR's findings reveal that electoral bond scheme brought a windfall for the ruling BJP ahead of Lok Sabha Elections 2019.

The Supreme Court will on April 10 hear a plea challenging the validity of the Centre's decision on issuance of electoral bonds for political funding. Several NGOs, Opposition parties, and even the Election Commission of India have raised concerns over the use of electoral bonds, which is a bearer Banking Instrument to be used for funding eligible political parties.

Association for Democratic Reforms (ADR) recently filed an application in the court seeking a stay on the Electoral Bond Scheme. It said that amendments carried out in the relevant Acts have "opened the floodgates to unlimited corporate donations to political parties and anonymous financing by Indian as well as foreign companies, which can have serious repercussions on the Indian democracy".

ADR's findings reveal that the scheme brought a windfall for the ruling BJP. According to audit reports and income tax reports submitted by parties to the Election Commission, the BJP has been the biggest beneficiary of electoral bonds, garnering 94.5% of the bonds worth around Rs 210 crore. Opposition parties like Congress, Trinamool Congress and CPI(M) are opposed to electoral bonds, alleging that it would benefit only the ruling BJP.

In an RTI response to Pune-based Vihar Durve, SBI said in 2018 it had sold bonds worth Rs 1056.73 crore in March, April, May, July, October, November. In January and March 2019 the bank sold Electoral Bonds worth Rs 1716.05 crore, the response said. The sale shows an increase of 62 per cent from those sold during 2018.

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Ruling BJP bags majority of the funds

The BJP’s audit and income tax reports submitted to the Election Commission of India list voluntary contribution of “Rs 210,00,02,000 through electoral bonds." Electoral bonds worth a total of Rs 222 crore were issued in the maiden tranche of the scheme in March 2018.

ADR's report shows of the Rs 215 crore generated through the banking instruments in 2017-18, the ruling party secured Rs 210 crore and the opposition Congress Rs 5 crore.

Referring to research and data compiled on the issue, the NGO has said that close to 97 per cent of all the bonds purchased so far were in denomination of Rs 10 lakh and Rs 1 crore with no demand for bonds of smaller denominations.