Target Dreams

This Post is based on the article  " The clear message in the Court’s ‘no’ to electoral bonds "  Which is Published in the The Hindu on 17th February 2024.  Introduction: The Supreme Court of India, in its ruling on February 15, 2024, has made a significant decision by striking down the electoral bonds scheme .  This move highlights the crucial need for transparency in democracy, particularly concerning campaign funding. Transparency Restored The electoral bonds scheme was criticised for its opacity, leaving voters unaware of who funded political parties and the amounts involved.  Transparency in campaign funding, a cornerstone of leading democracies, has been reinstated by the Court's decision. Limits on Corporate Funding The Court's judgment addresses legal issues, including the removal of limits on corporate funding, which can lead to undue influence on the government.  By reinstating these limits, the Court aims to prevent the potential misuse of funds for politi

Introduction: Electoral bonds, introduced in 2018, revolutionised political funding in India by allowing anonymous contributions to political parties.  These financial instruments function akin to promissory notes or bearer bonds and were designed specifically for political donations. Background: The Electoral Bonds Scheme (EBS) was first announced during the 2017 Budget Session and later notified in January 2018 through amendments to key legislations such as the Finance Act of 2017, the Representation of the People Act of 1951, the Income Tax Act of 1961, and the Companies Act of 2013.  These amendments aimed to streamline political funding by removing various restrictions and introducing electoral bonds as a new mode of donation. Donations Through Electoral Bonds: Electoral bonds are issued by the State Bank of India (SBI) and its designated branches in denominations of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore. Donors, whether individuals or companies, can purchase