The issue of Electoral Bonds, a system devised for political parties to receive donations, has faced legal scrutiny and challenges before it heads for a court hearing. Attorney General R. Venkataramani, the foremost legal representative of the Indian government, has filed his response in the Supreme Court, asserting that citizens do not possess a fundamental right to know the source of political contributions. This stance questions the possible exclusion of Electoral Bonds’ disclosure from affecting the public’s access to donation information.
The Right to Information: Chief Justice D.Y. Chandrachud leads a panel of five judges on the Constitution Bench, which commenced hearings on Tuesday, October 31. The Supreme Court had invited the Attorney General to present his views on the matter.
Venkataramani argues, “The system designed for funding political parties is a matter of policy. The Supreme Court intervenes in a law only when it infringes upon the fundamental or legal rights of citizens. Such cannot be claimed in this case. Creating and operating an organization under Article 19 (1)(c) of the Constitution is a fundamental right, allowing political parties to have their own rights.”
He further suggests that through electoral affidavits, candidates provide information about their criminal records to the voters, enhancing transparency. This precedent was established in the 2003 case of ‘People’s Union for Civil Liberties vs. Union of India.’ As of now, however, citizens do not have a right to access information about political donations. Even if the Court were to redefine a right, it cannot retroactively annul the existing law.
The Election Commission’s and Government’s Stance: The Election Commission had previously voiced concerns about the lack of transparency in the Electoral Bonds system, raising fears of increased black money in politics. Moreover, the influence of foreign companies on government policies via their financial contributions remains a pertinent concern. Nevertheless, the government contends that the Electoral Bonds system has improved transparency in political funding.
Understanding Electoral Bonds: In 2017, the central government introduced the concept of Electoral Bonds as a means to bring transparency to political donations. Under this system, donors purchase bonds from designated branches of State banks in the first ten days of each quarter and then provide them to political parties as contributions. It is believed that this process will reduce cash transactions. Banks will maintain records of bond purchasers, enhancing transparency.
The Petitioners’ Perspective: The Association for Democratic Reforms (ADR) and the Communist Party of India (Marxist) argue that the Electoral Bonds system lacks transparency. The secrecy provisions extend to the details of bond buyers and the recipients, keeping this information confidential. Even the Election Commission is not privy to this data. This setup potentially paves the way for corruption. Furthermore, foreign companies are allowed to purchase bonds, a departure from the earlier ban on foreign contributions.
From ADR’s viewpoint, the information submitted to different audit reports and the Income Tax Department by political parties indicates that nearly 95% of Electoral Bonds have benefited the Bharatiya Janata Party (BJP). It is clear that the ruling party is reaping significant advantages from this system, which might escalate during the upcoming general elections. Hence, the Court is urged to immediately restrict political contributions through bonds.
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