Electoral bonds seen along with Indian Rupee notes.
Credit: DH, iStock Photos
The electoral bonds data that came out into the public realm in the past several days is not just for discussion and debate, nor only for blame games and recriminations among parties. While it is grist to the political mill, the legal implications and the impact of the apparent misuse of public policy and power that it demonstrates need to be examined in detail. In some ways, the Electoral Bonds scandal has comparisons with the scams that rocked the UPA-2 government, and in some ways, it’s worse than any of those. Considering that the scheme was designed and implemented by the Narendra Modi government, and the BJP was its main beneficiary, the questions about it have to be answered mainly by it. But other parties that got their funds through the bonds route also have explanations to make.
The Supreme Court was instrumental in the SBI releasing the bonds data. There are oddities, abnormalities and suspicious circumstances that surround many payments. They point to possible corruption, misuse of power and illegalities. Sixteen companies which had made no profits in the years leading up to their donations are reported to have paid a total of Rs 710 crore. Some companies which paid the BJP are reported to have got government contracts or public resources worth many times their donations. Some companies were formed just after the Electoral Bonds scheme was announced and the only notable activity they have performed in the years since is to make donations under the scheme. Companies have made payments after they were raided by central agencies like the Enforcement Directorate (ED) and the Income Tax Department, thus pointing to a nexus between donations and raids. If there is a linkage between them, that amounts to corruption, misuse of power and extortion.
The issues and circumstances about the bonds need to be investigated as they formed an important source of political funding. The government has denied any wrongdoing and is not ready to conduct any investigation. The Supreme Court has found the bonds unconstitutional and can initiate or order an independent investigation, monitored by it, into the charges about these donations. If bonds were used to dispense favours to companies or individuals, that is an offence. If raids were employed to extort money, that is also an offence. If investigating agencies raided companies but did not pursue the investigation after they made donations through these bonds, they should be held accountable for it. If the scheme is illegal, shouldn’t the money collected under it be returned? It should be noted that a comprehensive investigation will cover all parties and their governments, not just the BJP and its government. It is also now clear that the SBI had made a false statement to the court about the time needed to release the data it readily had. So the contempt issue is also still real and should be pursued.