Volume 1 Issue 3 (2021)
Elections play a significant role in a Democracy, they are crucial to ensure representation of people in a democratic country. Conducting elections can be expensive and requires many resources. It is important to regulate election funding as misuse of these funds can lead to a dominant party system. Since the establishment of democracy, Political finance has served as the “wellspring of corruption.”
In 2018, Electoral Bonds scheme was introduced through Finance acts of 2016 & 2017, to create a more transparent system. Ironically, electoral bonds have only legitimized opacity by allowing anonymous donations. The scheme was never welcomed by RBI and EC. However, all the suggestions given by them were ignored by the government. The EC, RBI, and Judiciary are institutions that at various levels hold up the edifice of democracy like pillars. There is hardly any doubt that democracy is the biggest casualty in this matter. There is a need for reforms in the area of political finance to address the nature of political funding. These reforms must pass the basic tests of transparency and accountability. The article discusses the issues involved with the scheme and the casualty of government while dealing with these issues leading to a major setback to democracy.