India’s voters deserve a bond — of probity

Context:

The Electoral Bond Scheme (EBS) aimed to address the challenges of transparency and accountability in political funding in India. However, concerns have been raised regarding the efficacy and implications of the scheme, necessitating a closer examination of its genesis, design, and impact.

Genesis of the Electoral Bond Scheme (EBS):

• Objective and Problem Statement: The EBS was introduced with the objective of eliminating black money from political funding and enhancing transparency in the electoral process. The scheme was conceived to address the challenge of anonymous donations to political parties, which posed a threat to free and fair elections.
• Clean Channel for Funds: The EBS aimed to provide a 'clean' channel for funds to flow from donors to political parties by facilitating donations through bank transactions. It sought to incentivize donors to contribute transparently and prevent the generation of black money in political funding.
• Lack of Safeguards: While the EBS created a mechanism for transparent transactions, concerns arise regarding the legitimacy of the sources of funds used to purchase bonds. The absence of safeguards to ensure the integrity of the funds raised questions about the effectiveness of the scheme in curbing illicit financial practices.

Deficiencies and Implications of the Electoral Bond Scheme (EBS):

• Confidentiality Clause: The confidentiality clause of the EBS raised concerns about accountability and enforceability. The provision to treat information submitted by the buyer as confidential limited the scope of investigations into the sources of funds and donor-political party links.
• Lack of Transparency: The EBS lacked mechanisms for ensuring transparency and accountability in political funding. The absence of comprehensive records and disclosure requirements hindered efforts to track the flow of funds and investigate potential instances of corruption.
• Role of Institutions: The responsibility for addressing the deficiencies of the EBS lies with Parliament and other democratic institutions. The need for a consultative process and transparent policymaking is essential to devise effective electoral reforms and restore public trust in the political process.