What are Electoral Bonds?
Electoral bonds are ways in which members of the public can anonymously donate money to political parties. However, the BJP is under scrutiny for allowing the sale of electoral bonds only a few months before India’s election.
Why is the BJP under fire?
The BJP (the ruling political party in India) receives most of the electoral bonds donated- receiving around 57% of the total bonds between 2018 and 2022 (roughly $600 million). Increased funding for a party directly preceding an election, especially the ruling party, can make it more difficult for competing parties to win and provide an uneven playing field for competitors.
Many are concerned that anonymous donations can allow the BJP to launder illegal money. According to Business Standard, 41 companies who were under investigation from central agencies such as the Central Bureau of Investigation (CBI) and the Income Tax Department donated around RS 2471 crore ($295 million), 70% of which was donated whilst the companies were being raided by these agencies.
Similarly, 33 companies received government approval and handsome funding for their projects following a donation of RS 1751 crore ($210 million) to the BJP party in electoral bonds.
Opposing Backlash
Such corrupt events directly preceding the election may shed light on the nature of corruption in the Indian governmental system. Narendra Modi, the prime minister of India, has looked the other way, and the leader of the BJP aims to eradicate as much corruption as possible. Opposing parties, such as Congress (the leading opposition), may use this knowledge against the BJP during their campaign.
On March 16th, the Supreme Court scrapped electoral bonds in an effort to save name and avoid further protest. However, the damage may already have been done.
“This is the biggest scam of independent India”
Congress General Secretary Jairam Ramesh
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