Electoral Bonds and Political Funding in India: A Critical Appraisal

Political funding within electoral processes and democracies remains a complex issue without a clear solution. India’s Supreme Court invalidated the Electoral Bonds Scheme on 15 February 2024, which was introduced in 2018 to enhance transparency in electoral funding. This decision has returned the matter to its original state, with no resolution offered by the Court. The Court has addressed the major concerns of transparency in electoral funding, voters’ rights and potential quid pro quo arrangements between corporations and political entities. However, there is a pressing need to explore new methods of political funding to reinforce democracies and uphold the integrity of political and electoral processes. The authors have presented the entire episode of electoral bonds and the way it crumbled down, and the reasons for the same. The authors have also suggested ways out of the quagmire of political funding, which have a strong ethical base, taking cues from cross-country experiences. The paper analyses amidst the prevailing circumstances: What could be the long-term way out? The suggestions articulated are relevant for any democracy on the globe.