The Association for Democratic Rights (ADR) on Tuesday urged the Supreme Court to direct the Centre and the Reserve Bank “not to open any further window for the sale of electoral bonds” ahead of elections in Bengal, Assam, Kerala and Tamil Nadu.

According to the NGO, the BJP has received more than 60 per cent of the total electoral bonds issued till date. Bonds worth more than Rs 6,500 crore have been sold so far.

Almost 99 per cent of the bonds purchased are of denominations between Rs 10 lakh and Rs 1 crore, which shows that large corporations, not individual citizens, are purchasing them, the ADR said.

The ADR has moved a fresh “urgent application” before the top court, pleading that its earlier “urgent application on October 10, 2020, has not yet been listed”.

“The petitioner has now filed an application for directions to the respondents not to open any further sale window for… electoral bonds and not to allow any further sale in light of the fact that the RBI and the Election Commission had both objected to the EB scheme. Furthermore, data obtained through RTI has shown that illegal sale windows have been opened in the past to benefit certain political parties,” the application jointly filed through advocates Prashant Bhushan and Nehta Rathi stated.

“…There is a serious apprehension that any further sale of electoral bonds before the upcoming state elections in West Bengal, Tamil Nadu, Kerala and Assam would further increase illegal and illicit funding of political parties through shell companies. Thus, the petitioner seeks that no further opening of window for the sale of EBs be allowed during the pendency of the instant writ petition,” the application added.

The ADR recalled that it had as early as on September 4, 2017, filed a PIL citing alleged corruption and subversion of democracy through illicit and foreign funding of political parties.

In that PIL the ADR had urged the apex court to strike down certain amendments made through the Finance Act, 2017, and the Finance Act, 2016, both passed as money bills.

According to the ADR, the electoral bonds scheme has opened the floodgates to unlimited corporate donations to political parties and anonymous financing by Indian as well as foreign companies, which can have serious repercussions for Indian democracy.

The Finance Act of 2017 had introduced the use of electoral bonds that are exempt from disclosure under the Representation of Peoples Act, 1951. The amendment removed the cap of 7.5 per cent of net profit in the last three years on campaign donations by companies and legalised anonymous donations.

The ADR pointed out that in 2017 it had placed on record the following details for the consideration of the court:

⦾ The Election Commission had through a letter dated May 26, 2017, and the RBI vide letters dated January 31, September 14 and 27, 2017, had objected to electoral bonds and advised against the issuance of such documents as a mode for donation to political parties.

⦾ The Prime Minister’s Office had ordered special and illegal sale of bonds just before Assembly polls in Karnataka in May 2018 in violation of the electoral bonds scheme.

⦾ Another special sale window for electoral bonds was opened between November 1 and 10 before the Assembly elections in Chhattisgarh, Madhya Pradesh, Mizoram, Rajasthan and Telangana.

⦾ As per data on electoral bonds declared by political parties in their audit reports for the financial years 2017-18 and 2018-19, the BJP had received more than 60 per cent of the total electoral bonds issued. Corporations were being allowed to make unlimited anonymous donations to the ruling party because of amendments in the Finance Acts of 2016 and 2017.

Pointing out that the issue relating to electoral bonds was heard more than a year ago, the ADR cited the upcoming elections and pleaded on Tuesday: “…the instant matter requires urgent adjudication by this Hon’ble Court.”