Topic Details (Notes format)

Electoral Bonds and Political Funding

Subject: Polity

Book: Indian Polity by M. Laxmikanth

A scheme introduced to increase transparency in political donations, allowing individuals/corporates to buy electoral bonds from authorized banks and donate them anonymously to political parties. Proponents argue it formalizes contributions, reducing black money in elections. Critics claim anonymity fosters potential favoritism and questionable corporate influence. The Supreme Court has heard pleas challenging the constitutionality due to lack of donor disclosure to the public. The Election Commission flagged possible undermining of transparency. This debate underscores the tension between donor privacy and public interest in fair, transparent elections. Understanding electoral bonds reveals the complexities of regulating money in India’s vibrant democratic process.

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