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LATEST NEWS UPDATES | Bonds of secrecy -PDT Achary

Bonds of secrecy -PDT Achary

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published Published on Apr 3, 2019   modified Modified on Apr 4, 2019
-The Indian Express

Concealing the identity of donors in electoral bonds goes against a fundamental tenet of democracy — transparency

Electoral bonds are attracting attention in the run-up to the general elections. These bonds were conceived in 2017 and the necessary legislative changes were made in the Finance Bill of 2017. For example, Section 31 of the Reserve Bank of India Act, 1924, was amended and a new Clause (3) was added to provide for electoral bonds. This amendment was pushed through as a money bill, whereas the Reserve Bank of India Act itself is not a money bill. This contradiction remains unresolved till today. If the parent Act is not a money bill, how can an amendment to it be treated as a money bill?

Be that as it may, the notification issued by the Department of Economic Affairs of the Ministry of Finance on January 2, 2018, gives us details of these bonds. From it, one gets a clear idea of the objective of these bonds: To conceal the identity of the donor of political funds. In India, political parties fund their election campaigns mostly through funds from corporate houses and wealthy individuals. No political party can meet the exorbitant expenses of an election with their membership fees. They need to depend on corporates, who are flush with money, and have no hesitation in generously helping political parties, particularly the ones that are their favourites. Much of these funds are actually black money. Although political parties get income tax exemptions on these donations and the donors too can claim exemption under the relevant provisions of the Income Tax Act, the bulk of these donations remain un-accounted. This means that every election in India adds to the volume of black money in the country. While politicians keep on receiving such donations, they do not forget to make promises about eradicating black money.

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The Indian Express, 3 April, 2019, https://indianexpress.com/article/opinion/columns/lok-sabha-elections-electoral-bonds-of-secrecy-political-parties-5655406/


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