The political system in India has traditionally been hostile to the idea of transparency in electoral financing.
https://thewire.in/government/time-to-shut-the-floodgates-of-secret-political-party-funding
However, using the Money Bill route to bypass the Rajya Sabha, the government brought regressive amendments to the Income Tax Act, Companies Act, RBI Act and the Representation of the People Act, to introduce electoral bonds which allow donors to anonymously donate unlimited amounts of funds to political parties.
Under the Electoral Bond Scheme, an electoral bond (EB), issued in the nature of a promissory note, can be bought by any Indian citizen or company incorporated in India. The scheme allows parties to receive these bonds without the public, the Election Commission or even the Income Tax Department knowing the identity of donors. It has legitimised opacity and opened the floodgates for anonymous donations to parties, dealing a severe blow to voters’ right to know. People’s ability to track donations by big businesses and expose quid pro quo have been severely undermined.
Anjali Bhardwaj and Amrita Johri
02/11/2023