Electoral Bond scheme violated corporate donation rules under Modi’s nose: Congress
Congress leader Jairam Ramesh cites media report which claims that 20 new companies purchased bonds worth ₹103 crore despite rules barring firms lesser than three years old from donating funds to parties
The Congress on Wednesday (April 10) accused the Narendra Modi government of deliberately “muddying the waters” of corporation donations through its Electoral Bonds scheme, citing a media report which claimed that at least 20 newly incorporated firms purchased electoral bonds worth about ₹103 crore.
Congress general secretary Jairam Ramesh cited a report by The Hindu, which said that while making political donations was barred for companies that were in existence for less than three years, data shows that at least 20 such newly-incorporated firms purchased poll bonds worth about ₹103 crore.
‘Four channels of corruption’
Ramesh alleged there are four primary channels of corruption in the "electoral bond scam" and everyday a new dimension emerges to the "PayPM Scam", "confirming the shocking reality of the corruption which has engulfed this country through Narendra Modi's encouragement".
"An update on the 'Farzi Companies' who have been donating chanda to political parties - 1.Chanda Do, Dhandha Lo (give donations in exchange for business). 2. Theka Lo, Rishvat Do (give bribe in exchange for tenders) 3.Hafta Vasuli (extortion) 4.Farzi Company (shell companies)," he said in a post on X.
An investigation by The Hindu has revealed that at least 20 newly incorporated firms – more likely to be shell companies – purchased Electoral Bonds worth about ₹103 crore, Ramesh said.
Violation of rules
"This is a direct violation of rules which prevent companies less than three years old from donating to parties. This is not a coincidence. The Modi Sarkar's Electoral Bonds Scheme deliberately muddied the waters of corporate political donations," he alleged.
The electoral bond scheme got rid of the provision which limited corporate donations to 7.5 per cent of their average net profit during the previous three years, he said.
It introduced complete anonymity for donors, preventing public oversight of donations. The prohibition on companies less than three years old was one of the last few guardrails that remained to prevent an influx of political funds coming in from shell companies, Ramesh said.
"This last safeguard was also routinely violated under the prime minister's supervision," he alleged.
EC, RBI’s ‘prophetic’ warnings
Ramesh pointed out that in 2017 itself, the Election Commission (EC) had warned that Electoral Bonds may lead to the use of "black money through shell companies".
The RBI had also flagged the possibility of firms misusing bearer bonds for money laundering, he said.
"The Modi Sarkar overruled their objections, presumably to ensure the steady flow of ‘chanda’. To no one's surprise, the ECI and the RBI's warnings were prophetic," Ramesh said.
Following a Supreme Court directive, the State Bank of India (SBI), which was the authorised seller of electoral bonds, shared the data with the poll panel on March 12.
The SBI said a total of 22,217 electoral bonds of varying denominations were purchased by donors between April 1, 2019, and February 15 this year, out of which 22,030 were redeemed by political parties.
(With inputs from agencies)
