The Implications Of Electoral Bond Scheme And Corporate Funding On Political Parties: A Legal And Constitutional Analysis

Neha Yadav & Shailja Yadav, University of Lucknow, Lucknow

ABSTRACT

This research paper offers a comprehensive analysis of the Electoral Bond Scheme in India, focusing on its legal, constitutional, and practical implications. The scheme, introduced in 2018 to address the lack of transparency in political funding, has sparked intense debate surrounding the balance between donor privacy and transparency. Corporate funding facilitated through electoral bonds has raised concerns about potential inequalities and power imbalances in the political landscape, impacting the democratic electoral process. Amendments to the Finance Act of 2017 have introduced significant changes, reshaping the transparency and accountability of political party funding, demanding meticulous examination. The intersection of the scheme with the principles of freedom of speech, right to information, and its implications for democratic governance and public participation have prompted a comprehensive legal analysis. Lastly, the practical challenges associated with the implementation of the Electoral Bond Scheme and its alignment with principles of fairness, transparency, and accountability in political financing necessitate systematic scrutiny. This paper concludes with an evaluation of the recent landmark judgment of the Supreme Court declaring the Electoral Bonds Scheme unconstitutional, emphasizing the significance of the voters’ right to information in ensuring transparency and fairness in the electoral process.