Full disclosure of details of the Electoral Bonds Scheme (EBS) by the State Bank of India and Election Commission following stern admonition by the Supreme Court of India, is proof that despite dismantling of the licence-permit-quota regime in 1991, government still exercises substantial control over industry and commerce. That’s why a large number of companies and individuals, including some of the biggest names in India Inc, purchased electoral bonds — essentially bearer bonds which granted complete anonymity to the purchaser and recipient political party. Introduced in 2017 by the BJP government at the Centre, the objective of EBS was to clean up donations to registered political parties and eliminate the necessity of donors generating unaccounted ‘black’ money to fund electoral expenses — a necessity that can’t be wished away — of political parties and politicians. However in a landmark judgement delivered on February 15, a full bench of the Supreme Court struck down EBS, ruling that the fundamental right of citizens to information about who purchased and donated electoral bonds to which political party to ascertain quid pro quo, over-rode the right to privacy of donor-citizens. Although legally correct, this judgement is not in the public interest inasmuch as it is likely to restore the status quo ante and force citizens and corporates to generate black money to fund political parties. Recent developments such as weaponisation of government controlled economic offences investigation agencies such as the Enforcement Directorate, CBI, Income and GST authorities to target opposition parties and their actual and perceived supporters, are proof enough that the Central and state governments have sufficient powers to intimidate opposition parties and their supporters in business and industry. Therefore new pathways have to be found to legitimise contributions of individuals to political parties. A readily available option is to revert to the previous system of permitting corporates and businesses to transparently donate up to 7.5 percent of net profit to political parties of their choice. But this is a route fraught with danger because open and transparent donation to a political party is likely to make donors vulnerable to vendetta when an opposition party comes to power. In the circumstances, the better option is to enact legislation which permits individuals and corporates to contribute to an Election Fund which could be distributed by the Election Commission to every registered party in proportion to the percentage of popular vote it received in the last General Election. Of course the best option is for political parties to fund themselves by registering members for a modest fee — say Rs.100. Given India’s huge population, that can add up to a massive amount. Moreover party membership is a vote almost assured. This was the logic behind the registration (2013) of the Children First Party of India whose aims and objectives were self-evident. But lack of big budget promotion and an apathetic middle class buried this much needed initiative. Also read: Why BJP Swept Assembly Elections
