A Mega Fraud with Indian Public in the name of Electoral Bonds.



In the aftermath of the state elections, the Association for Democratic Reform (ADR) has filed a petition in the Supreme Court, seeking to strike down the electoral bond system.

Overview

The Central government has exempted political parties from disclosing donations received by electoral bonds, according to an amendment to the Finance Act of 2017.

What exactly does this mean?

This means that the public has no legal right to know about donations received by political organisations through electoral bonds.

Some intellectuals are raising serious concerns about this recent act of electoral bonds, with some seeing it as a fatal blow to our country’s emerging democracy. 

It violates the right to know. The supreme court upheld that the right to know is a fundamental right of people, and that it is an integral part of the right to freedom of expression under the Indian constitution’s basic fundamental rights of citizens, especially when it comes to elections.

What is a necessary prerequisite for a strong and flourishing democracy?

Before anything else, a free and fair election system is required.

India’s Election Commission’s Role

In May 2017, the Election Commission proposed a hand amendment to the Representation of the People Act. The election commission considers this as a “retrograde step.” 

Since well-capitalized corporations can easily funnel funds into political parties, wealth concentration and capitalism have the potential to grow. International contributions to political parties were permitted via Electoral Bonds, which could lead to further money laundering.

The Criticism of the RBI

According to a report by scroll.in, former Finance Minister Arun Jaitley placed this act on the table four days before the February 2017 budget. A tax officer pointed out that such a provision would require a change to the Reserve Bank of India Act. The official sent a copy of the proposed change of senior officials in the financial ministry in a note on January 28, 2017.

This new draft was sent to the RBI deputy governor for early feedback by a finance ministry official. The next day, Deputy Governor R Gandhi vigorously opposed the plan. It stated that electoral bonds would set a terrible precedent and could be used as a tool for money laundering. 

RBI refers to it as a bearer instrument with the ability to become a currency, and if issued in large quantities, it might adversely affect public faith in RBI banknotes.

Since 1982, it has been illegal even in the United States to issue a bearer instrument.

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