Electoral Bonds are now deemed illegal. However, who gained advantages during the six-plus years of their existence?

Electoral Bonds are now deemed illegal. However, who gained advantages during the six-plus years of their existence?

The Supreme Court's recent declaration that the electoral bond scheme introduced by the Narendra Modi government in 2017 is unconstitutional and violates the right to information and Article 19(1)(a) raises questions about the beneficiaries of the scheme during the more than six years it was in effect. Despite the court's decision, the electoral bond system operated until recently, with hundreds of crores worth of bonds sold by the State Bank of India as recently as January this year.

A total of Rs 16,518.11 crore worth of electoral bonds have been sold by the State Bank of India thus far, spanning two general election cycles and multiple state elections. During the period between 2017-2018 and 2022-2023, electoral bonds worth Rs 12,008 crore were sold. Of this amount, the Bharatiya Janata Party (BJP) received nearly 55%, totaling Rs 6,564 crore, while the Congress received only 9.5% or Rs 1,135 crore. The Trinamool Congress secured Rs 1,096 crore from electoral bonds during the same period.

A significant revelation from The Hindu indicated that 54% of the BJP's total income in 2022-23 came from electoral bonds, amounting to Rs 2,120.06 crore. Over the six-year period from 2018 to 2023, more than 52% of the BJP's total donations, worth Rs 5,271.9751 crore, originated from electoral bonds. In contrast, the Congress garnered Rs 171 crore from electoral bonds in 2022-23.

Regional parties also benefitted substantially from electoral bonds. The Bharat Rashtra Samithi led among them in 2022-23, receiving Rs 529 crore through this channel. The Trinamool Congress followed with Rs 329 crore, and the Biju Janata Dal and Yuvajana Sramika Rythu Congress Party received Rs 152 crore and Rs 52 crore, respectively. Notably, these parties received larger sums through electoral bonds in the preceding fiscal year.

The 2019 Lok Sabha elections, the first general election where electoral bonds were utilized, set a record as the world's most expensive election at the time, with political parties spending approximately $8.7 billion, more than double the expenditure for the 2014 elections.

Since their introduction, the electoral bonds scheme has faced scrutiny from transparency advocates who raised concerns about its impact on democracy. The Supreme Court's recent ruling vindicates these concerns, emphasizing the threats posed by anonymous donations and potential quid pro quo relationships between political parties and major businesses. The court has directed the State Bank of India to disclose details of all electoral bonds purchased, unveiling the secrecy surrounding substantial donations to India's political parties. However, the funds from electoral bonds have already played a significant role in supporting two general election cycles and numerous state elections.