Electoral Bonds: Does it help Strengthening Democracy in India?

Abstract

Elections are a vital part of parliamentary democracy since they are held at fixed intervals and provide all grown-ups over 18 the opportunity to poll. Elections encompass all aspects of the electoral system. India is frequently considered the world's largest democracy, having a free and open political system. In a significant move to improve openness in political fundraising, Mr. Arun Jaitley, the Indian finance minister, declared the Electoral Bond System in his budget address for 2017-18. Even though the electoral bonds were introduced to reduce the problems of black money and corruption, the central issue behind itself is that there is no obligation to know the identity of the donor who donates funds and the political parties to which they have contributed. Since the bonds are issued and purchased through the State Bank of India, the governing administration only has the information it needs to know about the donor, which makes the critical objective opaque. By analysing the fourteen phases of electoral bonds sold and redeemed from March 2018- to October 2020 by the Association of Democratic Reforms (ADR), it was found that 95 percent (Rs 210 crore) further than Rs.222 crore was received by The Bharatiya Janata Party (BJP) through electoral bonds. This article studies the bond market's historical evolution and the usage of electoral bonds in elections in India. The paper also analysis Indian electronic bonds that were offered and redeemed over the fourteen Phases from March 2018 to October 2020 and studied the issues, challenges, and suggestions for electoral reforms in India.