India and political donations
The Indian Supreme Court shocked the ruling BJP by actually ruling against it in a case dealing with the financing of political parties. The top court struck down a 2017 scheme that allowed private individuals, groups and companies to anonymously donate money to political parties, as long as it was done using special government bonds. The scheme had no checks or balances on where the money came from, or how much anyone had donated. This circumvented a requirement for parties to identify anyone making a direct donation of over Rs20,000, or about $240. This meant true grassroots political financing almost disappeared, while big donors and middlemen continued to finance parties.
The Reserve Bank of India, which had to issue the bonds, explicitly said they could “facilitate money laundering”. Prime Minister Narendra Modi also removed caps and reporting requirements for local companies, and allowed foreign companies to make donations through local subsidiaries. While Modi’s government and the ‘Godi Media’ portrayed the bonds as an anti-corruption measure, an astounding 95% of the bonds issued ahead of the 2019 elections went into the BJP’s coffers. Although the party is undoubtedly popular, no one in their right mind would look at this disparity and see it as anything but a concentrated effort by corporations and the ultra-rich to buy favour with the ruling party. Even by March 2023, the BJP had gotten 55% of the Rs120 billion in electoral bonds issued till then.
It was the absolute lack of transparency that proved to be a bridge too far for the Supreme Court, with the chief justice saying it infringed upon voters’ right to information. But while the bond scheme is now dead, the damage has been done. Most Indian news media is owned by Modi sympathisers and allies, while the BJP is flush with cash, often outspending opponents two-to-one, even in seats where it is a heavy favourite. Under these circumstances, it is unlikely that the opposition will be able to get their message across, and even the most obvious failings of the ruling party will be painted as indisputable successes.
Published in The Express Tribune, February 17th, 2024.
Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.