Electoral Bonds In India: A Critical Examination Of Political Financing

Tushar Singh Chauhan, LL.B., Asian Law College

Vardan Mittal, LL.B., Asian Law College

ABSTRACT

This paper offers a thorough examination of electoral bonds, a type of debt that was first used in India to finance political parties. The paper starts out by outlining electoral bonds' definition and intended use, as well as their historical background and current use under the Finance Act of 2017. It clarifies the procedures for the acquisition, redemption, validity, and denominations of these bonds while examining the functions played by the State Bank of India (SBI) and the Reserve Bank of India (RBI) in their issuance.

The study explores the controversial topics of anonymity and transparency, emphasizing the current discussion over donor anonymity and how it affects political financial openness. In order to extract lessons and insights for India, it compares the electoral finance changes in other democracies with the influence of electoral bonds on political fundraising patterns and the larger impacts on electoral democracy and governance.

Additionally, the paper offers ideas to improve openness and lessen the effect of dark money in political finance, as well as a multifaceted analysis of the current system. The study concludes by summarizing the main conclusions, offering a forecast for the future, and recommending changes that strike a compromise between the necessity of finance and maintaining democratic integrity with regard to electoral bonds' place in India's political financing system.