Indian banks’ existing norms may stand in the way of Supreme Court ruling to reveal the names of subscribers in electoral bonds, government sources told ToI, while adding that these instruments was to cleanse the system of political funding and curb illicit money.
Sources told ToI that the authorities were “examining” the order and considering different approaches to address its repercussions. There were concerns that the order might prompt numerous legal disputes regarding the decision to disclose the information.
In a landmark ruling the Supreme Court on February 15 banned electoral bonds that had become a major source of funding for political parties in India and data revealed the ruling Bharatiya Janata Party to have earned a lion’s share of Rs 16,518.11 crore received political parties between March 2018 and January 2024 through electoral bonds.
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The apex court called the electoral bonds, introduced by BJP government in 2018, as ‘unconstitutional’ citing concerns about transparency and accountability in political funding. It also instructed State Bank of India, the sole authorised seller of electoral bonds, to disclose details of donations made through these bonds and provide information about the recipients by March 13.
SBI has been ordered to disclose information regarding the purchasers, political parties receiving the bonds, purchase dates, purchaser names, and denominations. The Election Commission has been tasked with publishing these details on its website.
The government sources said that various options to reform political funding were considered, leading to the introduction of electoral bonds. The aim was to eliminate so-called black money and promote the use of legitimate funds for political financing.
However, there are concerns that black money may resurface in funding political parties during the upcoming general elections.
ET on Saturday reported citing unnamed sources the government may take a call next week on whether to file a review petition following the apex court’s decision to strike down the electoral bond scheme.
The sources said if necessary, the names of donors could be provided to the court in a sealed envelope to maintain confidentiality, ruling out the possibility of an ordinance to overturn the judgment, especially with Lok Sabha elections looming just a few weeks away.
When introducing the instrument, the government had stated that electoral bonds would function as bearer instruments resembling promissory notes and would be interest-free banking instruments. According to a press statement from the Department of Economic Affairs, Indian citizens or entities incorporated in India would be eligible to purchase these bonds.
