Union Home Minister Amit Shah stated on 15 March 2023 that the discontinued electoral bond scheme was implemented with the aim of “eradicating black money” from the political funding system.
A few days ago, the Election Commission posted the details of the Electoral Bonds on its website and what followed was a load of fake news and misinformation spread. Addressing the India Today Conclave 2024, Union Home Minister Amit Shah busted the false rhetoric surrounding electoral bonds.
He expressed apprehension that with the scheme now defunct, there is a concern that “black money” may resurface within the funding process.
Union Home Minister Amit Shah, speaking at India Today conclave, when asked about the controversy surrounding electoral bonds, particularly in light of the recent revelation that many of the top 30 donors have ongoing CBI or ED cases against them, with opposition leaders alleging it has become a mechanism of extortion, Amit Shah replied, “Electoral bonds were brought in to end the dominance of black money in Indian politics. Can someone explain to me that before electoral bonds were in place how the donations used to be made? How they come through bonds is that a company’s cheque is given to the RBI and bonds are purchased, there is a question of confidentiality in it. What happened to the donations earlier that used to come in cash? Whose name has been revealed? Tell me, has it happened to anyone to date? It did not happen to anyone, but I would like to answer the political things in more detail. The perception is being spread that the Bharatiya Janata Party has got a big benefit from the electoral bonds, that the BJP is in power blah blah blah, and now Rahul Gandhi has made a statement that electoral bonds are the means of biggest extortion in the world. I don’t know who writes all this to them.”
Amit Shah criticized opposition parties for their scrutiny of the BJP’s electoral bond receipts, highlighting what he deemed disproportionate amounts received by various parties relative to their seats in the Lok Sabha. He cited examples, noting that the Trinamool Congress encashed bonds amounting to ₹1,600 crore, Congress received ₹1,400 crore, Bharat Rashtra Samithi received ₹1,200 crore, BJD received ₹775 crore, and DMK received ₹649 crore. He also added, “I assure you that when the accounts are opened, these people will not be able to face you.”
Amit Shah countered accusations of industrialists contributing by questioning the historical transparency of political donations. He argued that before the existence of electoral bonds, political funding origins were obscured, raising suspicions of black money. He defended the electoral bond system as a means to eliminate such opacity, highlighting its reflection in the balance sheets of both parties and companies involved. He attributed the confidentiality of the process to fears of reprisal from opposing parties depending on the political landscape. Additionally, Amit Shah criticized the Congress Party’s historical practices of accepting cash donations, alleging a tendency to underreport funds. He emphasized that electoral bonds ensure transparency by directly depositing the entire sum into the party’s account.
Amit Shah emphasized the absence of secrecy following the implementation of the electoral bonds scheme, stating, “The amount is reflected in the bank accounts of both the parties and the donors.” He criticized the Congress Party, alleging, “When donations were made through cash transactions, they deposit ₹100 in the party and keep ₹1,000 in their homes.” Shah added that the Congress had done this for years.
When asked about the concerns about information asymmetry with the electoral bond scheme, where it’s alleged that government officials could potentially access information on who donated to opposition parties, Amit Shah clarified that they never sought such information from the State Bank of India, emphasizing that the donation amounts are transparently reflected in the balance sheets of political parties, including the Congress Party and their own.
Shah noted that the Election Commission of India makes these balance sheets public, ensuring transparency for all. When asked about potential solutions following the Supreme Court’s ruling, he expressed uncertainty, suggesting that finding a viable solution might be challenging. Despite acknowledging the imperfections of the electoral bond scheme, Amit Shah believed it was a step in the right direction and should have been improved rather than scrapped. However, he also said he respected the decision of the Supreme Court on the matter.
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