Electoral Bond Data Reveals Political Donations: SC Orders Disclosure

In a landmark decision, the Supreme Court has intervened to ensure transparency in India's political funding landscape by ordering the full disclosure of electoral bond data. This directive sheds light on the significant financial contributions made to political parties through this controversial mechanism.

Now, the SC has ordered the SBI to reveal all details about these bonds, including special alphanumeric numbers for each one.

Introduction of Electoral Bonds

Electoral Bonds, introduced in 2018 with the aim of fostering transparency in political funding, have faced scrutiny due to concerns about anonymity and potential misuse. Despite their intended purpose, doubts lingered about their effectiveness in curbing corruption and ensuring accountability.

Supreme Court's Intervention

In February 2024, the Supreme Court took a decisive step by declaring Electoral Bonds and related laws unconstitutional. This ruling came amid growing apprehensions that the system allowed for the violation of individuals' rights and enabled corporations to donate unlimited funds to political parties. The subsequent release of electoral bond data intensified discussions surrounding political funding transparency.

Order for Full Disclosure

Responding to the call for transparency, the Supreme Court mandated the State Bank of India (SBI), responsible for managing Electoral Bonds, to disclose comprehensive details about these bonds. This includes providing unique alphanumeric identifiers for each bond, along with any associated serial numbers. The court's directive aims to enhance transparency in political funding and holds the SBI accountable for complete disclosure.

Revelation of Major Contributors

The disclosed data reveals significant contributions from major corporations and conglomerates to political parties. Top contributors include Future Gaming and Hotel Services, Megha Engineering and Infrastructure, Vedanta Ltd, Bharati Group, and Essel Mining and Industries Ltd. These substantial donations underscore the influence of corporate interests in shaping political landscapes.

Here is the comprehensive list of donors who contributed Rs 10 cr or more through electoral bonds.

Insights into Regional Political Financing

Meanwhile, the ECI has unveiled a new dataset according to which ten regional parties, including the DMK, AIADMK, and Janata Dal (S), have voluntarily disclosed the names of contributors who donated via electoral bonds between March 2018 and April 2019. This disclosure provides valuable insights into regional political financing dynamics, including donors and their respective party affiliations, thereby promoting greater transparency and accountability.

 Financial Impact on Political Parties

Financially, the Bharatiya Janata Party (BJP) emerges as the primary beneficiary, receiving a staggering Rs 6,986.5 crore through electoral bonds. Notably, the BJP received the highest amount in a single financial year, totaling Rs 2,555 crore in 2019-20. Other significant beneficiaries include the Indian National Congress (INC), the Biju Janata Dal (BJD), the YSR Congress, and the Telugu Desam Party (TDP).

Implications for Electoral Strategies

These figures underscore the substantial financial resources injected into political parties through the electoral bond scheme, shaping their electoral strategies and campaign efforts. The unveiling of electoral bond data and the Supreme Court's order for full disclosure mark significant milestones in India's electoral landscape, signaling a commitment to transparency and accountability in political financing.