CPI(M) hails SC verdict on electoral bonds, calls for reforms for political funding

The ceiling that was kept as percentage of their profit was given away, which meant sell companies could be opened, black money could be laundered and given to political parties as donation legally, Yechury said.The electoral bonds scheme effectively abolished the ceiling on contributions made by corporations, which was earlier limited to 7.5 per cent of the organisations average net earnings over the preceding three-year period.

Welcoming the Supreme Court judgment striking down electoral bonds, the CPI(M), the only political party among the petitioners in the case, said it was an ''unscrupulous scheme designed to help the ruling party'' and it was now essential to introduce reforms for political and electoral funding.

In a widely anticipated judgement ahead of the Lok Sabha elections, the Supreme Court annulled the electoral bonds scheme for political funding, saying it violates the constitutional right to freedom of speech and expression as well as the right to information.

''The Polit Bureau of the CPI(M) hails the historic judgment of the Supreme Court, which has struck down the electoral bonds scheme as unconstitutional. By this verdict, this unscrupulous scheme designed to finance the ruling party by anonymous corporate donors has been completely scrapped,'' the party said in a statement.

The party had declared at the outset itself that it would not accept electoral bonds as this scheme legalises corruption, the statement read, adding that the CPI(M) had challenged the electoral bonds scheme in the Supreme Court along with other petitioners.

''It is gratifying that the main contentions set out in the petition against the scheme have been upheld. It is essential now that reforms for political and electoral funding are introduced to ensure transparency, clean funding and a level-playing field,'' the party said.

In a post on X, CPI(M) general secretary Sitaram Yechury said he was glad that the unanimous verdict has upheld the party's contention.

Talking to PTI, Yechury said the CPI(M) was the only political party that did not accept electoral bonds, and called it ''legalisation of corruption''.

''We were petitioners seeking the scrapping of electoral bonds and the Supreme Court allowed us to be the petitioners...because we are the only ones who had a locus standi because we never accepted electoral bonds,'' Yechury told PTI.

''We have always maintained and even now maintain that electoral bonds were legalisation of corruption and we wanted it scrapped. And we are satisfied, most of the points we raised in our petition have been upheld by Supreme Court,'' he said.

The CPI(M) general secretary also recalled the heated debate he had in Parliament with then finance minister Arun Jaitley when the related bill was discussed.

''...I was a member of Parliament and remember having a heated debate with then Finance Minister late Mr. Arun Jaitley that you are opening floodgates of corruption, because what was that amendment, the amendment said corporates can donate unlimited. The ceiling that was kept as percentage of their profit was given away, which meant sell companies could be opened, black money could be laundered and given to political parties as donation legally,'' Yechury said.

The electoral bonds scheme effectively abolished the ceiling on contributions made by corporations, which was earlier limited to 7.5 per cent of the organisation's average net earnings over the preceding three-year period. An amendment was made to the Companies Act, 2013 for this.

''It was legal money laundering that was being allowed, even that has been struck down by the Supreme Court, so we think it's a very good judgment which will have a seminal importance in at least beginning to clean up of this legal route for corruption,'' he said.

Yechury also took a jibe at the BJP which he said claims to be anti-corruption but inducts ''corrupt elements'' from all political parties.

Asked about the impact of the decision on the upcoming Lok Sabha polls, he said, ''The ruling party has its own methods to raise money.... The old system will continue. The fact is that already 90 percent donation has gone to the ruling party. They have amassed their wealth. Let us see the exposure when it comes in March then we will know what is the quid pro quo that the government has been doing with these corporates.'' The Supreme Court has ordered the State Bank of India (SBI) to disclose to the Election Commission the names of the contributors to the six-year-old scheme.

The information should include the date of encashment and the denomination of the bonds and be submitted to the poll panel by March 6.

The Election Commission should publish the information shared by SBI on its official website by March 13, the apex court said. The ruling BJP received nearly Rs 1,300 crore through electoral bonds in the 2022-23, while the Congress earned Rs 171 crore in the same period.

Introduced in January 2018, electoral bonds are monetary instruments that citizens or corporate groups can buy from a bank and give to a political party, which is then free to redeem these for money.