𝗕𝗼𝗻𝗱, 𝗠𝘆 𝗻𝗮𝗺𝗲 𝗶𝘀 𝗕𝗼𝗻𝗱 𝗘𝗹𝗲𝗰𝘁𝗼𝗿𝗮𝗹 𝗕𝗼𝗻𝗱

Laws ammened to maintain the Anonymity of donor

Electoral bonds were introduced in India in 2018 as a mechanism for political funding. They are financial instruments that allow individuals and corporate entities to make donations to political parties. Initially, the scheme did not guarantee anonymity to the donors, as their identity was disclosed to the political parties receiving the bonds.

However, subsequent changes were made through amendments to various laws, including the Finance Act, the Representation of the People Act, and the Companies Act, to provide for the anonymity of electoral bond donors. These changes were made to ensure that the donor's identity would not be made public or disclosed to the political parties.

The Finance Act, 2017, introduced the concept of electoral bonds and laid out the framework for their issuance and redemption. The Act included provisions for the donor's identity to be kept confidential, stating that the bond shall be a bearer instrument in the form of a promissory note, which means the identity of the donor is not recorded on the bond itself.

The Representation of the People Act, 1951, was also amended to exclude electoral bonds from the definition of "foreign source" under the act. This meant that political parties could receive donations through electoral bonds without violating the restrictions on foreign funding.

The Companies Act, 2013, was amended to remove the requirement for companies to disclose their political contributions in their financial statements. Previously, companies were required to disclose the amount and the name of the political party to which they made contributions. The amendment effectively allowed companies to make anonymous donations through electoral bonds.

These legislative changes collectively facilitated the anonymity of electoral bond donors. The intention behind these changes was to encourage more transparency in political funding, as donors could contribute without the fear of their identities being publicly disclosed. However, it is worth noting that these changes have been subject to criticism and debate, with concerns raised about the potential for increased opacity and the influence of undisclosed corporate donations on the political process.