Behind the curtain: unravelling corruption in the electoral bonds scheme

Since its inception in 2017, the Electoral Bonds scheme has faced ongoing criticism for its flawed framework, risking quid pro quo, crony capitalism, and undermining fair & fair elections. This paper leverages the newly available data to identify four distinct forms of corruption facilitated by the scheme. Section 1 examines the phenomenon of “chanda do, dhanda lo” (give donation and get business), where newly established and other corporate entities rapidly channel substantial funds to political parties. Section 2 investigates instances of “hafta-vasuli” (extortion), wherein ruling parties exploit law enforcement agencies to target corporate entities, subsequently receiving significant political funding from the raided companies. Section 3 explores the dynamics of “theka lo, rishwat do” (bag contract, give bribe), revealing implicit quid pro quo relationships between parties and corporates in exchange for funding and contracts. Lastly, Section 4 highlights the existence of “Farzi companies” (fake companies) through which illicit funds flow to parties.