SBI Furnishes Electoral Bond Details to Election Commission

In compliance with the Supreme Court's order, the State Bank of India (SBI) has submitted the details of political parties that purchased and received now-scrapped electoral bonds to the Election Commission of India. The apex court had directed SBI to disclose this information by the end of business hours on March 12.

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Supreme Court's Landmark Verdict

On February 15, the Supreme Court delivered a landmark verdict declaring the Centre's electoral bonds scheme unconstitutional. The scheme allowed anonymous political funding, which the court deemed to be in violation of the Constitution. Consequently, the court ordered the Election Commission to disclose the names of donors, the amounts donated, and the recipient political parties.

SBI's Compliance

SBI, which issued electoral bonds worth Rs 16,518 crore in 30 tranches since 2018, initially sought an extension until June 30 to disclose the details. However, the Supreme Court rejected this plea and instructed the bank to submit all information to the Election Commission by the close of working hours on Tuesday, March 12.

Challenges in Disclosing Details

Former finance secretary S C Garg criticized SBI's approach, stating that the bank's attempt to match each electoral bond purchaser with its recipient political party was unnecessary and not required by the Supreme Court. He highlighted that these bonds lacked serial numbers or identifiers, and the purchase and deposit processes did not allow SBI to record specific information about purchasers or depositors.

Electoral Bonds Scheme

The electoral bonds scheme was introduced in 2018 as an alternative to cash donations to political parties, aiming to enhance transparency in political funding. These bonds were purchased by Indian citizens or entities incorporated in the country and could only be redeemed by eligible political parties through an authorized bank account. SBI served as the sole authorized bank for issuing and encashing electoral bonds.

Eligibility for Electoral Bonds

Registered political parties that had secured at least 1% of the votes polled in the last Lok Sabha or legislative assembly elections were eligible to receive funding through electoral bonds. These bonds were seen as a means to curb black money in political funding and promote transparency.

The Supreme Court's decision to scrap the electoral bonds scheme and mandate the disclosure of donor information marks a significant step in ensuring transparency and accountability in political funding. SBI's compliance with the court's order demonstrates the importance of adhering to legal directives and upholding the principles of transparency and integrity in the electoral process.