Electoral Bonds Scam Exposed

Summary

The video script discusses the controversial electoral bond scheme in India, which was introduced to curb black money in political funding but faced numerous challenges and criticisms. It delves into the history of political donations, the role of corporate entities, and the legal battles that ensued. The script highlights the Supreme Court's decision in 2024 to declare the electoral bond scheme unconstitutional due to its failure to ensure transparency and promote fair elections. It also raises questions about the influence of corporate donors on policy decisions and the need for a transparent and accountable political funding system.

Takeaways

• 🏛️ The Indian political parties BJP and Congress were declared guilty by the High Court for accepting foreign funding, which is illegal under Indian law.
• 📈 The use of electoral bonds was introduced as a means to bring transparency to political funding, but it has been met with controversy and legal challenges.
• 🛑 The High Court found that the electoral bond scheme was unconstitutional and ordered its removal, along with the cessation of bond issuance by SBI and public disclosure of donor details.
• 💼 Companies were found to have donated more than their profits to political parties, raising questions about the motivations behind such large donations.
• 🤝 Both BJP and Congress united to amend the FCRA Act in response to being found guilty of taking foreign funds, demonstrating a bipartisan effort to protect their interests.
• 🔑 The amendment to the Companies Act allowed for unlimited corporate donations, which critics argue could lead to increased black money in politics.
• 🕵️‍♂️ Several companies that were raided by central agencies for various issues were found to have made large donations to political parties, suggesting a possible quid pro quo.
• 💼 The lack of transparency in political funding can lead to corruption, as seen in cases where companies with government-dependent operations made large donations.
• 🗳️ The Supreme Court's decision to strike down the electoral bond scheme highlights the importance of maintaining free and fair elections, as well as the public's right to information.
• 📊 The data released post the court's decision revealed a significant bias towards the ruling party in terms of donations received, indicating an unfair advantage in political funding.

Q & A

What was the main issue raised in the court regarding BJP and Congress?

The main issue raised was that both BJP and Congress were accused of breaking the law by taking foreign funding, which was allegedly admitted in court to ensure that a particular company benefits from their continued power.

What was the significance of the ultraviolet ray-treated bond?

The ultraviolet ray-treated bond had a secret number on it, which was revealed when examined under UV light. This indicated a covert method of tracking or identifying the bonds, suggesting potential misuse or corruption in the political funding system.

How does donating to political parties provide a tax benefit compared to donating to temples?

While donating to temples provides a 50% tax discount, donating to political parties offers a 100% tax deduction, making political donations more financially advantageous for donors.

What is the role of electoral bonds in the political funding system?

Electoral bonds were introduced as a means to bring transparency to political funding. They are a financial instrument used for making donations to political parties, which are purchased from authorized banks and can be used to donate any amount to eligible parties.

What was the controversy surrounding the introduction of electoral bonds?

The controversy lies in the fact that electoral bonds were introduced by amending several acts, including the Companies Act, RBI Act, IT Act, RPA Act, and Income Tax Act. Critics argue that this move was not transparent and could potentially facilitate anonymous, large-scale donations that could influence political decisions.

Why were donations to political parties initially banned under the Companies Act?

In 1969, Section 293A of the Companies Act was deleted, banning companies from donating to political parties, in an attempt to reduce the influence of corporate money on politics and to prevent potential conflicts of interest.

What is an electoral trust and how does it function?

An electoral trust is a legal entity formed by a group of companies to pool funds for donations to political parties. It acts as a buffer, allowing companies to donate without directly associating with the parties, thus reducing the risk of political backlash against individual companies.

How did the Representation of the People Act change the political funding landscape?

The Representation of the People Act, particularly after amendments, introduced regulations on political donations, including the limit on cash donations and the requirement for transparency in donations above a certain threshold, aiming to reduce the circulation of black money in politics.

What was the Supreme Court's decision on the constitutionality of electoral bonds?

The Supreme Court declared the electoral bond scheme unconstitutional on 15th February 2024, directing SBI to stop issuing electoral bonds and ordering the Election Commission to publicly display all donation details.

What are some examples of questionable donations highlighted in the script?

Examples include companies donating more than their profits, such as a company with a profit of Rs 215 crores donating over Rs 1300 crores, and companies that were raided by central agencies like CBI, ED donating large sums in the same month of the raid.