Electoral Bonds: Why are they banned & how will it affect BJP?

economictimes.indiatimes.com:

electoral bonds. These bonds were not actual tradable instruments but allowed for contributions to be made by individuals or companies to a political party through a banking channel. The controversial element — which led to the court case — was a government decision to keep the donors anonymous.

Also Read: SC unanimously strikes down poll bonds scheme, terms it ‘unconstitutional’

What did the court decide?

The court decided that contributions made for political funding cannot be anonymous and the electoral bonds are no longer a valid mode for donating to political parties. Voters, said the court, have the right to information that is necessary for them to cast their vote. Giving anonymity to donors making large contributions goes against that fundamental right. Large corporate donors could get quid pro quo benefits from their anonymous contributions, including closer access to legislators and favorable policy decisions. By removing disclosure requirements the scheme could adversely impact India’s electoral democracy. The court went on to rule that the absolute non-disclosure of funding needs to be done away with. The scheme is arbitrary and against India’s constitutional principles and needs to be struck down, country’s top judge D. Y. Chandrachud said, while pronouncing the order on behalf of the five-judge bench.

Also Read: BJP took home lion's share of Rs 16,000 crore political funding

What are electoral bonds?

Electoral bond SC verdict: India will know all info about all donors and