Electoral Bonds | The Biggest Scam in History of India? | Explained by Dhruv Rathee

Dhruv Rathee・2 minutes read

The Electoral Bond Scam in India involved kickbacks for political parties, with the BJP receiving a significant amount of funds and facing scrutiny for the large donations. The scheme was declared unconstitutional by the Supreme Court, revealing fraudulent activities involving companies, political parties, and the government transferring public funds through electoral bonds.

Insights

  • The Electoral Bond Scam, the largest in independent India's history, involved kickbacks for political parties hidden from the public, leading to the scheme being declared unconstitutional by the Supreme Court after 7 years, exposing a financial scandal.
  • The scheme's inner workings revealed through SBI data release showed how companies bought Electoral Bonds, which were then redeemed by political parties for money, with top donor companies like Future Gaming, Megha Engineering, and Vedanta facing scrutiny for buying bonds worth millions and receiving undue benefits in government projects.

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Recent questions

  • What is the Electoral Bond Scam?

    The Electoral Bond Scam is the largest financial scandal in independent India's history, involving a scheme introduced by the Modi government in 2017 to collect kickbacks for political parties. The Supreme Court declared the scheme unconstitutional after 7 years, revealing an extortion racket and a collection of scams hidden from the public eye.

  • How did the Electoral Bond scheme work?

    The Electoral Bond scheme worked like coupons, with companies purchasing these bonds and political parties redeeming them for money. Each bond had a secret unique number, contradicting the government's claim of donor anonymity. The scheme allowed for large donations to political parties without revealing the donor's identity, leading to concerns about transparency and accountability.

  • Which political parties were involved in the Electoral Bond Scam?

    The BJP received a significant portion of the funds from the Electoral Bond scheme, with ₹60 billion out of ₹127 billion worth of bonds issued going to the party. Other parties like Trinamool Congress and Congress also received substantial amounts. The involvement of multiple political parties raised questions about the misuse of funds and the impact on the democratic process.

  • What were the consequences of the Electoral Bond Scam?

    The consequences of the Electoral Bond Scam included the Supreme Court declaring the scheme unconstitutional, revealing the financial scandal to the public. The scam highlighted issues of corruption, lack of transparency, and the misuse of political donations for personal gain. The involvement of top donor companies in fraudulent activities further exacerbated the impact of the scandal.

  • How did the public react to the Electoral Bond Scam?

    The public reaction to the Electoral Bond Scam was one of outrage and concern over the misuse of funds and lack of accountability in the political system. The revelation of the scam raised questions about the integrity of the electoral process and the influence of money in politics. Calls for greater transparency and reforms in political financing emerged as a result of the scandal.

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Summary

00:00

"Electoral Bond Scam Uncovered in India"

  • The Electoral Bond Scam is considered the biggest in independent India's history, involving a collection of scams and an extortion racket.
  • The scheme was introduced by the Modi government in 2017 to collect kickbacks for political parties, with actions hidden from the public.
  • The Supreme Court declared the scheme unconstitutional after 7 years, revealing the financial scandal.
  • BJP received ₹60 billion out of ₹127 billion worth of bonds issued, with other parties like Trinamool Congress and Congress also receiving significant amounts.
  • BJP politicians defended the large donations, claiming it was justified due to the party's size.
  • Providing or receiving political donations isn't a scam, but using them to gain contracts or harass non-donating companies is fraudulent.
  • Electoral Bonds worked like coupons, with companies buying them and political parties redeeming them for money.
  • Each bond had a secret unique number, contradicting the government's claim of donor anonymity.
  • SBI was directed by the Supreme Court to release data on bond purchases and encashments, revealing the scheme's inner workings.
  • Some political parties never accepted Electoral Bonds, while others defended their use to facilitate donations without causing donor issues.

13:11

Electoral Bonds Scam Involving Political Parties

  • Three entities involved in frauds: political party in power, large companies making political donations through electoral bonds, and the common masses.
  • Political party box contains political donations, company box holds company's money, and people's box contains public funds.
  • Government taking money from citizens' box and giving it to the company's box, which then transfers money to the party's box through electoral bonds is considered a scam.
  • Examples of scams include tax evasion by companies leading to lack of public funds for government salaries, recruitment, and public welfare.
  • Top donor companies on electoral bonds list like Future Gaming, Megha Engineering, and Vedanta were raided by ED and Income Tax Department.
  • Companies like Navayuga Engineering, Ranjit Buildcon, and BG Shirke Construction bought electoral bonds worth millions despite being involved in incidents of negligence or corruption.
  • Megha Engineering bought electoral bonds worth billions and received undue benefits in projects like Kaleshwaram Multipurpose Irrigation Project.
  • Megha Engineering also won contracts for projects like Zojila tunnel and Thane-Borivali Twin Tunnel after purchasing electoral bonds worth billions.
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