EC’s Objection to Electoral Bonds Without ‘Factual Merit’: Govt

EC had said that “anonymous” funding through electoral bonds opened the floodgates to unlimited corporate donations.

(Photo: Arnica Kala/The Quint)

Responding to the objections raised by the Election Commission of India over electoral bonds, the government has filed a fresh affidavit in the Supreme Court and said that concern is “without legal or factual merit”.

Earlier on 27 March, the EC had filed an affidavit saying electoral bonds and removal of cap on corporate funding would have “serious impact” on transparency of the funding of political parties.

It had also said “anonymous” funding through electoral bonds opened the floodgates to unlimited corporate donations to political parties.

However, the finance ministry countered the argument and said that the electoral bonds attempt to bring in “transparency” in comparison to the earlier system of cash donations.

The affidavit further reads that the “identity of the buyer is known to the authorised bank as the RBI instructions regarding KYC norms are applicable to the buyers of the bond.”

It states that the identity of donors is kept confidential to avoid political victimisation.

The government further emphasised on the fact that the “amounts received under the bonds can be credited to a single registered bank account belonging to a political party.”

Earlier, one of petitioners, Association for Democratic Reforms (ADR)'s advocate Prashant Bhushan, told the court that 95 percent of the electoral bonds sold so far have been in favour of the ruling political party. He called it a form of kickback, before the elections.

The petitions challenging the issuance of electoral bonds by the government is likely to be heard by the Supreme Court on 5 April.