The Lok Sabha was informed on Friday that there are currently no plans to introduce a new law on electoral bonds for the funding of political parties. The Lower House also learned that the government is not considering any proposals for funding political parties through the Election Commission. Law Minister Arjun Ram Meghwal, in a written reply, confirmed that the government has no intention of enacting legislation regarding electoral bonds. He also addressed queries on whether alternative methods of funding for political parties, in relation to Lok Sabha and assembly elections, were being considered.
Meghwal reiterated that no such proposals are under consideration by the government, news agency PTI reported.
Additionally, Meghwal clarified that there are no current plans to fund political parties via the Election Commission.
This update comes in the wake of a Supreme Court ruling in February that annulled the electoral bonds scheme, deeming it a violation of the constitutional rights to freedom of speech and expression, as well as the right to information.
Nirmala Sitharaman Said BJP Intends To Bring Back Electoral Bond Scheme
In response to this ruling, Union Finance Minister Nirmala Sitharaman stated in April that the Bharatiya Janata Party (BJP) intends to reinstate electoral bonds in some form, contingent on wider consultations and if the party is re-elected in the upcoming Lok Sabha elections, according to a report by the Hindustan Times.
Sitharaman indicated that the Centre has yet to decide whether to file a review petition against the Supreme Court's judgement. She noted, "We still have to do a lot of consultation with stakeholders and see what is it that we have to do to make or bring in a framework which will be acceptable to all, primarily retain the level of transparency and completely remove the possibility of black money entering into this."
The Finance Minister argued that the previous electoral bonds scheme had enhanced transparency, contrasting it with the prior system, which she described as a "free-for-all."
Following the Supreme Court's directive on February 15, the State Bank of India (SBI) was ordered to provide details of political parties receiving electoral bonds from April 12, 2019, to the Election Commission. However, the initial data released by SBI did not include unique alphanumeric or serial numbers of the bonds.
Electoral bonds, which could be purchased from SBI by individuals or corporate entities, were redeemable by political parties. Under the scheme, buyers did not have to disclose their purchases, and political parties were not required to disclose the sources of these funds. The Election Commission only received the total amounts received through the bonds as reported in audited accounts. However, concerns arose as the Centre could potentially access donor information due to its control over SBI.