Skip to main content

Opaque Electoral Bonds edge out transparent political party funding routes


By Venkatesh Nayak*
Soon after the then Union Finance Minister announced the Government’s plan to launch Electoral Bonds (EBs) as a method of making donations to political parties, in February 2017 I had critically analysed its implications. I had also pointed out that EBs will become the preferred method for making large-sized donations to political parties due to the anonymity that it affords to donors.
The EB receipt data reported by some political parties, now available in the public domain, thanks to the disclosure of their Annual Audit Reports for 2018-19 on the website of the Election Commission of India, has proved my hypothesis. RTI interventions have also revealed that there were few takers for EBs of lower denominations like Rs 1,000 and Rs 10,000. The EB receipts data shows the sharp plummeting of corporate donations made in a transparent manner as big donors seem to prefer the EBs route.
My main findings from a quick comparative analysis of the proportion of EBs to total donations received by these parties are given below:
1) According to their Audit Reports, the total amount of donations that AITMC, BJP, BJD, INC, JD(S), TRS and YSRCP received during the financial year (FY) 2018-19 from various sources such as corporates, individuals, electoral trusts and Electoral Bonds is Rs 3,696.62, crore. Electoral Bonds receipts amount to almost 2/3rds (65.51%) of this total figure;
2) The seven political parties received between 55-87% of donations through the EBs route. No party received less than 50% of its donations through the EB route in 2018-19;
3) Two state level recognised political parties received more than 80% of their donations in the form of EBs. At 87.91%, EBs contributed the largest proportion of donations to BJD’s kitty. JD(Secular) came second with 82.20% of donations received in the form of EBs;
4) TRS came 3rd on this list with EBs contributing more than 3/4ths (77.46%) of the quantum of donations received;
5) The three national level recognised political parties received between 61-69.50% of their donations through the EBs route. While the INC tops this list with 69.49%, the BJP is at third place with EBs contributing only 61.63% of the donations received. However, at Rs 2,354 crores, the BJP received the largest amount of funding through the EB route amongst all seven political parties;
6) YSRCP received the least amount of donations through the EBs route. However this figure was more than 55% of the total contributions received by that party;
7) Only INC, TRS and YSRCP declared the amount of donations received from corporates/companies separately in their Audit Reports. Together they received less than 2% (1.45%) donations from corporates in a transparent manner. Corporate donations, when not routed through EBs have to be accounted for in the contribution and audit reports if they are above Rs 20,000. However, Aristo Pharmaceuticals which made a donation of Rs 13 crores to JD(U) without using EBs is an exception. They do not seem to be fearful of making such a large donation to one political party in a transparent manner. Their certificate of contribution is included in JD(U)’s Annual Contribution Report for 2018-19.
8) At 3.74% corporate donations formed the smallest proportion of total contributions received by the INC. It was 8.11% for TRS while YSRCP received more than 10% of its total donations from corporates.
9) Electoral Trusts and Foundations also seem to have lost their charm for political parties receiving funding through the EBs route. Only one national level recognised political party and three State level recognised parties received funding through this route. Electoral Trusts contributed more than 17% (17.15%) to the INC’s coffers- the largest recipient in this group. YSRCP received almost 15% (14.91%) of its donations from such Trusts while TRS received a little over 9% of funds through this route. BJD declared it had received less than 1% (0.82%) of its funds from such Trusts. Interestingly, the BJP which mooted the EB scheme did not report any receipts from Electoral Trusts.
In conclusion, the worst fears of advocates of greater transparency in political party funding like me have come true. The opaque EBs mechanism where the identity of donors remains secret has become the preferred route for corporates and individuals making large sized donations to political parties. Interestingly, not all ruling political parties seem to have received funding through the EB route. Most notably, JD(U), AAP and AIADMK have not reported receipt of any EBs in 2018-19. Similarly prominent opposition parties such as TDP, RJD, DMK, SAD, NCP, CPI, CPI-M, SP and BSP have also not received EBs during the last financial year even though some of them have received donations to the tune of several crores through other modes of payment.
Although organisations such as the Association for Democratic Reforms have moved the Supreme Court challenging EBs as a mode of making political donations, there is another way to thwart this menace. All Opposition Parties which have spoken against EBs must publicly make a pledge not to accept contributions from anybody through EBs, and abide by it. Those that have already received funding through this route, must take a pledge not to accept EBs in future and abide by that pledge. This way, there is a strong likelihood that pressure might be built on the NDA to withdraw this scheme. The alternate scheme where all donations above Rs 20,000 must be accounted for individually and reported to the Election Commission of India is good enough to serve the purpose of transparency in political party funding, contrary to the NDA Government’s thinking.

*Programme Head, Access to Information Programme, Commonwealth Human Rights Initiative, New Delhi

Comments

TRENDING

Eight years of empowering tribal communities through water initiatives in Chhattisgarh

By Gazala Paul*   In the heart of Chhattisgarh, amidst the echoes of tribal life, a transformative journey has unfolded over the past eight years. The Samerth organization has diligently worked to elevate the lives of indigenous communities in the Kawardha district through the project, "Enabling Baiga Community to access safe drinking water." 

Towards 2024: Time for ‘We the People of India’ to wake up before it is too late

By Fr Cedric Prakash SJ*  It is Constitution Day once again! We, the people of India, gratefully remember 26 November 1949 when the Constitution of India was passed and adopted by the Constituent Assembly. The Constituent Assembly comprised women and men of distinction, who were able to represent the heart and soul of the people of India without fear or favour. They gave of their best, so that we may a visionary Constitution, which would be the mainstay for and of democracy in India!

Regretful: Kapil Dev retired not leaving Indian cricket with integrity he upheld

By Harsh Thakor  Kapil Dev scaled heights as an entertainer and a player upholding the spirit of the game almost unparalleled in his era. In his time he was cricket’s ultimate mascot of sportsmanship On his day Kapil could dazzle in all departments to turn the tempo of game in the manner of a Tsunami breaking in. He radiated r energy, at a level rarely scaled in his era on a cricket field. Few ever blended aggression with artistry so comprehenisively. Although fast medium, he could be as daunting with the ball as the very best, with his crafty outswinger, offcutter, slower ball and ball that kicked from a good length. Inspite of bowling on docile tracks on the subcontinent, Kapil had 434 scalps, with virtually no assistance. I can never forget how he obtained pace and movement on flat pancakes, trapping the great Vivian Richards in Front or getting Geoff Boycott or Zaheer Abbas caught behind. No paceman carried the workload of his team’s bowling attack on his shoulders in his eras muc

Critical factors that determine, contribute to the success and effectiveness of NGOs

By Rohit Rakshit  Over the last few years, I have been fortunate to work with numerous non-governmental organizations (NGOs) across various states in the country. This experience has allowed me to gain insights into their diverse areas of work while also enabling me to analyze the key attributes that contribute to the success of a good NGO. According to my observations, the following are the critical factors that determine the effectiveness of an NGO.

How the slogan Jai Bhim gained momentum as movement of popularity and revolution

By Dr Kapilendra Das*  India is an incomprehensible plural country loaded with diversities of religions, castes, cultures, languages, dialects, tribes, societies, costumes, etc. The Indians have good manners/etiquette (decent social conduct, gesture, courtesy, politeness) that build healthy relationships and take them ahead to life. In many parts of India, in many situations, and on formal occasions, it is common for people of India to express and exchange respect, greetings, and salutation for which we people usually use words and phrases like- Namaskar, Namaste, Pranam, Ram Ram, Jai Ram ji, Jai Sriram, Good morning, shubha sakal, Radhe Radhe, Jai Bajarangabali, Jai Gopal, Jai Jai, Supravat, Good night, Shuvaratri, Jai Bhole, Salaam walekam, Walekam salaam, Radhaswami, Namo Buddhaya, Jai Bhim, Hello, and so on.

Martin Crowe played instrumental role in making New Zealand a force in world cricket

By Harsh Thakor* Late Martin Crowe was the perfect manifestation of how mere figures could not convey or do justice to the true merit of a batsman. Crowe was arguably the most complete  or majestic batsmen of his era or the ultimate embodiment of batting perfection, or the classical batsmen. He perished 7 years ago, due to a rare and aggressive form of cancer, follicular lymphoma, which originated in 2012. In September, we celebrated his 60th birthday but sadly he left for his heavenly abode.

Raising temperature of frozen foods by 3 degrees from -18°C to -15°C can slash carbon emissions: Study

By Payel Sannigrahi  Frozen food temperatures could be changed by just three degrees to save the carbon dioxide emissions of 3.8 million cars per year, research suggests. 

Odisha leadership crisis deepens: CM engages retired babus to oversee depts' work

By Sudhansu R Das  Over decades, Odisha has lost much of its crop diversity, fertile agriculture land, water bodies, employment potential, handicraft and handloom skills etc. The state has failed to strike a balance between the urban and rural sector growth; this leads to the migration of villagers to the urban areas leading to collapse of the urban infrastructures and an acute labor shortage in rural areas.  A large number of educated, skilled and unskilled Odia people have migrated to other states for higher education, quality jobs and for earning livelihood which plummet the efficiency level of government departments. Utmost transparency in the recruitment and promotion in the state government departments will improve governance mechanisms in the state.  "No near and dear one approach" in governance mechanisms can only achieve inclusive growth for the state on payment basis. This is a moral hazard. When so many educated young people seek employment outside the

Ceasefire a tactical victory for Palestinian resistance, protests intensify across globe

By Harsh Thakor*  The Zionist leadership and Netanyahu’s government were compelled to concede the defeat of their first attempt after almost 50 days of daily fighting in the Gaza Strip.  Netanyahu was forced to concede that he was unsuccessful in suppressing the Palestinian Resistance; and that the release of the prisoners was only plausible because they accepted Hamas’ terms.

1982-83 Bombay textile strike played major role in shaping working class movement

By Harsh Thakor  On January 18th, 1982 the working class movement commemorated the 40th anniversary of the Textile Workers Strike that lasted for 18 months, till July 1983. It was landmark event that played a major role in shaping the working class movement. With more than 2.5 lakh workers from 65 textile mills joining in this strike for almost two years, this strike became one of the most significant strikes in terms of scale and duration All democrats should applaud the mill workers’ united battle, and their unflinching resilience an death defying courage continues to serve as a model for contemporary working-class movements. Many middle class persons harboured opinions that the Textile workers were pampered or were a labour aristocracy, ignorant of how they were denied wages to provide for basic necessities. The Great Bombay Textile Strike is notably one of the most defining movements in the working class struggles in Post-independent India. Bombay’s textile industry flourished in