Electoral bonds: Plea in SC seeks SIT probe into alleged quid pro quo between parties, corporates

New Delhi: The Supreme Court has been approached with a request for a special investigation team (SIT) to conduct a court-supervised inquiry into alleged “quid pro quo” transactions involving political parties, corporations, and law enforcement officials. This comes after the apex court’s five-judge bench invalidated the anonymous political funding through electoral bonds on February 15, a system introduced by the current government.

The State Bank of India, designated as the official institution for the scheme, complied with a Supreme Court order to disclose transaction data to the Election Commission, which subsequently made the information public.

Introduced on January 2, 2018, the electoral bonds scheme was promoted as a transparent alternative to cash contributions to political parties. However, two NGOs, Common Cause and Centre for Public Interest Litigation, have labelled the scheme a “scam” and are urging an investigation into the funding sources of companies, including “shell” and unprofitable entities, that have donated to political parties, as revealed by the Election Commission’s data.

The petition, represented by advocate Prashant Bhushan, also calls for the recovery of donations made by companies in “quid pro quo” arrangements identified as criminal proceeds.

The petitioners argue that, unlike previous scandals without a clear money trail, the electoral bond issue is traceable and warrants a court-guided investigation, similar to actions taken in past cases. They assert that key investigative bodies may have been complicit in corruption, with firms under their scrutiny potentially donating large sums to influence investigations.

The plea suggests that the SIT should consist of active or retired investigators of unblemished reputation, selected by the Supreme Court and overseen by a retired judge, to probe the alleged collusion among public servants, political entities, businesses, and officials from investigative agencies.

Additionally, the petition seeks an examination of potential violations of the Companies Act, 2013, by companies that donated to political parties via electoral bonds shortly after their establishment, and the imposition of penalties as per the Act.

The petitioners claim that the data indicates a pattern of corporate donations to political parties in exchange for contracts, licences, and other governmental favours, raising concerns about the bonds being used as “protection” payments to prevent or delay regulatory actions.

The alleged misuse of electoral bonds, according to the petition, has led to contracts and regulatory oversights worth billions and has potentially allowed the sale of substandard or hazardous drugs, posing a risk to public health.

Described by observers as possibly the largest scam in India, the issue has also highlighted the proliferation of shell companies allegedly used to funnel illicit funds, as suggested by the electoral bond data.

The petition emphasises the need for a thorough investigation into these serious allegations.

with agency inputs