Delhi HC Orders Probe into Misuse of Electoral Bonds for Campaign Funding
- ByAdmin --
- 31 May 2025 --
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The Delhi High Court’s recent directive to investigate the alleged misuse of electoral bonds for campaign funding has sparked a crucial debate on transparency and accountability in political financing in India. This judicial intervention sheds light on the complexities surrounding electoral bonds and their potential exploitation. This article explores the key aspects of the issue, the legal framework governing electoral bonds, and the implications of the court's order.
Understanding Electoral Bonds
Electoral bonds were introduced through the Finance Act, 2017, with the objective of promoting transparent political funding. These bonds are monetary instruments that allow individuals, companies, or entities to donate funds to political parties anonymously. Issued by the State Bank of India (SBI), they can be purchased by Indian citizens or entities incorporated in India and are valid for 15 days from the date of issuance.
Key Legal Provisions
- Representation of the People Act, 1951
- Section 29C: Requires political parties to disclose contributions exceeding ₹20,000, though this does not apply to donations made through electoral bonds.
- Section 29C: Requires political parties to disclose contributions exceeding ₹20,000, though this does not apply to donations made through electoral bonds.
- Companies Act, 2013
- Section 182: Permits companies to make political contributions but initially capped such contributions at 7.5% of their average net profits for the preceding three financial years. The Finance Act, 2017, removed this cap, raising concerns about corporate influence on politics.
- Section 182: Permits companies to make political contributions but initially capped such contributions at 7.5% of their average net profits for the preceding three financial years. The Finance Act, 2017, removed this cap, raising concerns about corporate influence on politics.
- Constitutional Articles
- Article 19(1)(a): The right to freedom of speech and expression, which some argue includes the public's right to know the sources of political funding.
- Article 14: The right to equality, which critics claim is violated by the lack of transparency in electoral bonds that favor ruling parties.
- Article 19(1)(a): The right to freedom of speech and expression, which some argue includes the public's right to know the sources of political funding.
Concerns and Allegations
- Anonymity and Lack of Transparency
The anonymity provided by electoral bonds has been criticized for enabling unaccounted political contributions, making it difficult to trace the sources of funding.
- Misuse for Political Gains
Allegations suggest that the ruling party disproportionately benefits from these bonds, raising questions about the neutrality of the mechanism.
- Corporate and Foreign Influence
With the removal of the profit cap under the Companies Act, companies with questionable origins, including shell companies, can potentially influence elections.
- Potential for Black Money
Although the government claims that bonds purchased through legal banking channels reduce black money, critics argue that the anonymity of donors could still facilitate the circulation of illicit funds.
Delhi HC’s Directive
The Delhi High Court’s order calls for an independent probe into allegations of misuse of electoral bonds. The court emphasized the importance of ensuring compliance with constitutional principles, particularly transparency, and the need for a fair electoral process.
Implications of the Judgment
- Strengthening Accountability
The investigation could potentially lead to stricter monitoring and regulation of political donations, ensuring compliance with disclosure norms.
- Legal Precedents
The court’s order might set a precedent for future cases involving the intersection of electoral processes and financial integrity.
- Impact on Political Parties
Increased scrutiny may compel political parties to adopt transparent practices in receiving and declaring donations.
- Public Awareness
This case has sparked widespread discussions, encouraging greater public interest in political accountability.
Way Forward
- Amendments to Existing Laws
Laws governing political donations, such as the Representation of the People Act and the Companies Act, may require amendments to address current loopholes.
- Enhanced Judicial Oversight
Courts must continue to play an active role in ensuring electoral integrity and accountability.
- Technological Interventions
Utilizing technology to create a transparent and traceable mechanism for political donations could address anonymity concerns.
- Public Participation
Increased awareness and active citizen engagement are crucial to demand greater transparency in electoral funding.
Conclusion
The Delhi High Court’s probe into the misuse of electoral bonds represents a significant step toward addressing concerns surrounding opaque political financing in India. By emphasizing the importance of transparency, accountability, and adherence to constitutional principles, the court’s directive could pave the way for reforms that safeguard the democratic fabric of the nation.
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