Electoral Bonds: Extortion In The Name of Political Funding For Elections 2024?

As the wheels of democracy turn, the opaque world of political funding and electoral bonds stands as a formidable barrier to transparency and accountability in our nation. Recent revelations surrounding the electoral bonds scheme through data released by the State Bank of India, in collaboration with the Election Commission (EC) have brought to light a tangled web of influence-peddling and potential quid pro quo arrangements between political parties and corporate entities. At least 14 out of the top 30 companies purchasing electoral bonds from April 12, 2019, to January 24, 2024, have found themselves embroiled in legal controversies and faced action by central or state probe agencies.

Details of these companies are as follows-

1. Future Gaming and Hotel Services: Despite facing the heat of an Enforcement Directorate (ED) investigation resulting in the attachment of assets worth over Rs 409 crore, the firm managed to channel a staggering Rs 1368 crore into electoral bonds between October 27, 2020, and October 5, 2023.
2. Megha Engineering and Infrastructure Limited (MEIL): Following raids by the Income Tax department in October 2019, MEIL, under the stewardship of Telugu tycoon Krishna Reddy, contributed a substantial Rs 966 crore in electoral bonds.
3. Haldia Energy Limited: Despite facing action by the Central Bureau of Investigation in March 2020, the firm donated Rs 377 crore in electoral bonds, raising eyebrows about the nature of its association with political entities.
4. Vedanta Limited: The Vedanta Group, amidst ED raids related to a money laundering probe in August 2022, collectively donated Rs 400 crore in electoral bonds, suggesting a possible quid pro quo scenario.
5. Yashoda Super Speciality Hospital: Despite being under scrutiny by Income Tax officials in December 2020, the corporate hospital chain managed to channel Rs 162 crore into electoral bonds in October 2021.
6. DLF Commercial Developers Limited: Facing raids by both CBI officials in January 2019 and ED in November 2023, the realty developer company donated Rs 130 crore in electoral bonds, raising questions about the motive behind such hefty contributions.
7. Jindal Steel and Power Limited (JSPL): Under the shadow of an ED probe linked to alleged violations of foreign exchange regulations in April 2022, JSPL contributed a total of Rs 123 crore in electoral bonds, sparking concerns of a nexus between corporate interests and political favors.
8. Chennai Greenwoods Private Limited: Despite facing scrutiny by Income Tax officials in July 2021, the construction firm donated Rs 105 crore in electoral bonds in January 2022.
9. Dr Reddy’s Laboratories Limited: Amidst IT raids in November 2023 over allegations of tax evasion, Dr Reddy’s Laboratories made donations worth Rs 80 crore in electoral bonds, further fueling speculations about the nature of political funding.
10. IFB Agro Limited: Despite allegations of raids by the Directorate General of Goods and Services Tax Intelligences (DGGST) in June 2020, IFB Agro allegedly donated Rs 40 crore in electoral bonds.
11. NCC Limited: Under scrutiny by the Income Tax department in November 2022, the Hyderabad-based firm contributed Rs 60 crore in electoral bonds.
12. Divi S Laboratory Limited: Despite facing IT action in February 2019, the Hyderabad-based company donated Rs 55 crore in electoral bonds.
13. United Phosphorus India Limited (UPL): Despite facing IT raids in January 2020, UPL donated Rs 50 crore in electoral bonds.
14. Aurobindo Pharma: In the midst of an Enforcement Directorate probe related to a money laundering scam in November 2022, Aurobindo Pharma had previously donated Rs 1.6 crore in electoral bonds, raising questions about the motives behind such contributions.

These instances paint a highly disturbing picture of potential collusion between corporate interests as well as political entities, where donations through electoral bonds might be serving as a shield against legal repercussions of scams and scrutiny by investigative authorities. Furthermore, a significant portion of the contributions made through Electoral bonds allegedly originate from shell companies. This strategic manoeuvre aims to obscure the direct association from being established between corporate giants and their involvement in the political landscape, effectively veiling the extensive web of extortion that appears to be thriving within the country.

Rahul Gandhi speaks about Electoral Bonds

Congress leader Rahul Gandhi, in a scathing indictment, has labelled the electoral bonds scheme as “the world’s biggest extortion racket” and squarely placed all the blame on Prime Minister Narendra Modi. Gandhi’s allegations while resonate with the data presented, they paint a grim picture of coercion and manipulation in the guise of political funding in politics as a whole.

Gandhi’s assertion that funds obtained through the scheme were used to destabilize opposition parties and topple governments is not unfounded. He highlighted instances where companies, after facing legal action, seemingly rushed to donate hefty sums to the ruling party, however such claims can be further collaborated only through proper investigation into the source and destination of such funds. This investigation is only needed due to the lack of transparency inherent in the electoral bonds scheme, allowing corporates to donate anonymously, shielding their motives from public scrutiny.

The modus operandi, as alleged by Gandhi, seems clear, which is to intimidate corporates into funding the ruling party under the guise of legal repercussions. However, keeping the politics of ruling and opposition parties aside, this uncovered pattern and symbiotic relationship between corporate entities and political powers raises alarming questions about the democratic principles of transparency and fairness.

Why a Court-Monitored Probe on Quid Pro Quo Involving Electoral Bonds Is Needed

The recent revelations which surround the electoral bonds scheme in our country have cast a dark shadow over the integrity of our democratic processes, which is claimed by our leaders to be the strongest in the world. The mere semblance of political and financial morality seems to have been trampled upon as donations flow in from companies under the scrutiny of central investigative agencies.

Prime Minister Narendra Modi’s promise to combat corruption, made during an election rally in Nagarkurnool, Telangana, on March 16, 2024, appears to be at stark contrast with the ongoing controversy surrounding electoral funding and the name of ruling party being dragged in all the major donations made. Moreover, Home Minister Amit Shah attempts to whitewash the scheme as a solution, shows that he is conveniently ignoring the glaring flaws and potential for abuse of such a scheme.

Adding to this, Finance Minister Nirmala Sitharaman’s brazen dismissal of any links between central investigative agencies and political funding reeks of indifference. Her cavalier attitude towards the gravity of the situation is deeply concerning, as she nonchalantly brushes aside allegations of quid pro quo with a flippant remark about “knocking on doors”.

The February 14, 2024 judgment of the apex court with regards to the Electoral bonds should have served as a wake-up call, prompting immediate action to investigate the murky dealings surrounding electoral bonds. Instead, our leaders choose to bury their heads in the sand, refusing to acknowledge the elephant in the room or start playing the blame game on other parties being engaged in the dirty business which surrounds the whole nations political landscape at the moment.

It is abundantly evident that a thorough, court-monitored probe into the electoral bonds scheme is the pressing need of the hour. The judiciary must continue step up to its role as an independent organization, free from any political influence, and encourage comprehensive investigations into the alleged quid pro quo arrangements of all those involved. Only through transparent and impartial scrutiny can we hope to restore faith in our democratic institutions and hold those responsible for their actions accountable.

The time for half-hearted promises and empty rhetoric is over. It is time for action now that elections 2024 are so close. The people of India deserve answers, and it is the duty of Indian judiciary to ensure that justice prevails over any political pressure. Anything short of a rigorous investigation would be a betrayal of the trust placed in our democratic system and judiciary making a mockery of the principles of accountability and transparency.

Way Forward

In conclusion, in the push for transparency and accountability in India’s political funding, there is a growing call for a court-monitored investigation into the complex relationship between electoral bonds and potential extortion or quid pro quo arrangements. However, alongside this demand for scrutiny, we must confront the important challenges hindering our efforts to uncover the veracity in the big political claims. The widespread use of shell companies as donors in the electoral bond system further makes it extremely difficult to trace the origins of political funding. This lack of transparency not only continues to undermines democratic principles but also fosters a culture of secrecy and influence-peddling within political landscape giving rise to widespread corruption.

This issue extends far beyond the confines of a single political party as it strikes at the heart of our country’s democratic ethos. A robust democracy is based on the informed participation of its citizens, empowered by access to comprehensive information given to its people. Yet, the opacity surrounding political funding and electoral bonds leaves voters in the dark, eroding trust in the electoral process and undermining the very essence of democracy.

Therefore, it is imperative that the political landscape undergoes a profound transformation by unwavering transparency and a sense of commitment to the public interest. Political parties must shed the cloak of secrecy and embrace accountability of their actions, ensuring that every rupee donated is accounted for and every future action should be guided by principles of integrity and public interest.

Moreover, the judiciary’s role in unearthing such extortion schemes and scams under the guise of schemes like Electoral bonds cannot be overstated. As the custodian of justice and an independent organ of the democracy, it must wield its authority to illuminate the darkest corners of corruption, holding perpetrators accountable and safeguarding the sanctity of our democracy. Only then can the people of our country envision a future where democracy thrives, and the voices of the people resonate with unwavering clarity and conviction.