• The Electoral Bond Scheme introduced by the Indian government aimed at enhancing transparency in political donations. However, the Supreme Court of India has recently made an observation regarding this mechanism, stating that the Electoral Bond is “selectively anonymous.”
• This observation underscores concerns about the potential implications and ambiguities in the scheme’s design, particularly in how it manages donor confidentiality while ensuring accountability in political financing.
• The court’s remark opens the door to a broader discourse on striking a balance between donor privacy and the public’s right to transparency in political funding.

More about the news

Concerns & Challenges

• The scheme might violate the Citizen’s Fundamental Right to Information under Article 19 (1) (a) regarding political parties.
• It could enable backdoor lobbying and quid pro quo. Further, it may pave the way for shell companies.
• The funds from the scheme can be used for purposes other than elections.
• The scheme may not reduce black money but reroute it. It acts like an ‘alternative white money channel’.
• Importantly, the scheme might not ensure a level playing field for opposition parties. According to Association of Democratic Reforms (ADR), between 2016-17 and 2021-22, the BJP received a significant portion of the total donation from electoral bonds.