NGO ‘Association for Democratic Reforms’ has approached the Supreme Court against the opening of windows for sale of Electoral Bonds before forthcoming Assembly polls in five states and union territory.
The application moved through advocates Prashant Bhushan and Neha Rathi also sought an urgent hearing in the matter.
It contended that there is a serious apprehension that any further sale of Electoral Bonds before the upcoming state elections in West Bengal, Tamil Nadu, Kerala and Assam, would further increase illegal and illicit funding of political parties through shell companies.
The Finance Ministry on January 02, 2018, notified the Electoral Bond Scheme, 2018. As per the scheme, an electoral bond is a bond issued in the nature of a promissory note, it may be purchased by a person who is a citizen of India or entities incorporated or established in India. The bonds are issued in multiples of Rs 1,000, 10,000, one lakh, 10 lakhs and 1 crore.
According to data on Electoral Bonds declared by political parties in their audit reports for 2017-18 and 2018-19, the ruling party had received more than 60% of the total electoral bonds issued till date, it said.
The NGO further pointed out so far more than Rs 6,500 crores worth of EBs have been sold with the majority of donations going to the ruling party. Almost 99% of the EBs purchased are of value Rs 1 crore and 10 lakh denominations which showed that it is not individual citizens but large corporations which are purchasing these bonds with a view to receive kickbacks from the government.
“Clearly, these corporations are being allowed to do make unlimited anonymous donations to the ruling political party because of the amendments brought about but the Finance Act, 2017 and Finance Act, 2016,” it said.
The petitioner asked the court to restrain the authorities from further selling the Electoral Bonds during the pendency of the petition against its validity. It maintained that the Electoral Bonds Scheme has opened the floodgates to unlimited corporate donations to political parties and anonymous financing by Indian as well as foreign companies which can have serious repercussions on the Indian democracy.
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