Representative image of Rs 500 notes.
Credit: iStock Photo
Political funding through anonymous electoral bonds witnessed a staggering increase of more than 400 per cent during the recent Assembly elections in Telangana, Rajasthan, Madhya Pradesh, Chhattisgarh, and Mizoram compared to the previous polls in 2018, according to data from the State Bank of India (SBI) accessed by The Indian Express.
Election-specific data
According to information obtained by The Indian Express under the Right to Information (RTI) Act, SBI data revealed that electoral bonds worth Rs 1,006.03 crore were sold and encashed in the latest tranche (29th) of sales conducted from November 6 to November 20. Notably, 99 per cent of this amount originated from the sale of Rs 1 crore denomination bonds.
Comparison with 2018 elections
In contrast, data from 2018, specifically during the sixth tranche of electoral bonds sold from November 1 to November 11, shows that sales amounted to Rs 184.20 crore. These figures coincide with the Assembly elections held in November-December of the same year in the five aforementioned states.
Distribution and encashment
The breakdown of the latest sales (29th tranche) revealed that the highest sales occurred in Hyderabad (Rs 359 crore), followed by Mumbai (Rs 259.30 crore), and Delhi (Rs 182.75 crore). When it came to encashing the bonds, the New Delhi branch led with Rs 882.80 crore, while Hyderabad was a distant second with Rs 81.50 crore.
Regional disparities
Among other states with elections, Jaipur (Rajasthan) saw the sale of poll bonds amounting to Rs 31.50 crore, while Rs 5.75 crore of bonds were sold in Raipur (Chhattisgarh), and Rs 1 crore in Bhopal (Madhya Pradesh). However, none of these states reported any encashment. Notably, no sales were recorded in Mizoram.
Anonymity and national funding
The electoral bond scheme guarantees anonymity, making it challenging to identify donors and recipients. Despite this, the data indicates that the majority of funding originated from Hyderabad, Mumbai, and Delhi, flowing predominantly to political parties in Delhi, suggesting a national impact.
Government's timing and Supreme Court proceedings
The announcement of the latest tranche of sales on November 4, just two days after the Supreme Court reserved judgment on petitions challenging the electoral bond scheme's validity, raises questions about the government's timing and intentions.
Transparency concerns
Introduced in 2018 with the aim of enhancing transparency in political funding, the electoral bond scheme has faced criticism for its perceived opacity. Critics argue that the scheme's failure to disclose the identities of donors compromises its transparency objectives.
SBI's exclusive role
State Bank of India remains the sole authorized bank to issue electoral bonds. The cumulative amount collected by political parties through the poll bond scheme, spanning 29 phases since 2018, has now surpassed Rs 15,922.42 crore.