Professor Nitasha Kaul for the Financial Times on political finance reform in India

In the article, which was published in print and online, she highlights threats posed to democracy in India by Electoral Bonds, an instrument of political party finance. These bonds were introduced before the last general elections and allow for the use of unlimited donations to political parties via anonymous physical bearer bonds. The identities of the donors do not need to be declared by the individual or the party. 

Professor Kaul explains: “India’s elections are incredibly expensive; the country’s 2019 general election, which brought the ruling Bharatiya Janata party to power for a second term (and saw a near doubling in spending relative to the 2014 one), was more expensive than America’s 2016 presidential election". Against this backdrop she says: "Electoral bonds represent a sea change in the principles of public accountability that underpin political donations. Prior to 2017, political parties in India had to disclose the identity of any donor who gave more than ₹20,000 (about £200). Now, electoral bonds allow unlimited donations to political parties, without any need for disclosing donor identity."

First announced in 2017, these bonds came into effect in 2018. Professor Kaul highlights that such donations have been in highest denominations by corporate entities and wealthy individuals, with the ruling party receiving a large majority of such funding. She explains that while the government’s rationale for these bonds is that they eliminate the use of cash and create a channel of legitimate funding for political parties, a case against the bonds has been long-pending at the Supreme Court. 

Professor Kaul points out that the bonds legalise opacity and make it impossible for citizens to enquire into potential for bribery at a time when it is vital that electoral contests remain competitive and responsive to public interest.

Read the full article on the Financial Times’ website.