NGOs Petition Supreme Court for SIT Probe into Alleged Electoral Bond Quid Pro Quo

Two public interest NGOs, Common Cause and the Centre for Public Interest Litigation (CPIL), have filed a petition in the Supreme Court seeking a court-monitored investigation by a Special Investigation Team (SIT) into alleged instances of quid pro quo between political parties, corporates, and officials of investigating agencies through the Electoral Bonds Scheme. The petition comes after the Supreme Court had earlier struck down the scheme as unconstitutional.

The petitioners allege that the data disclosed by the Election Commission of India (ECI) reveals overwhelming evidence of multiple forms of quid pro quo arrangements. "The bulk of the electoral bonds appear to be quid pro quo deals between corporate donors and political parties in exchange for contracts, licenses, and other favors," the petition states. It further claims that companies facing ongoing investigations have donated large sums to ruling parties, the government has provided undue benefits to corporates around the time they donated huge sums, and even loss-making and shell companies have donated through electoral bonds, which could amount to money laundering.

According to the petition, the BJP has encashed the biggest share of electoral bonds worth Rs 8,251 crore, followed by Congress and Trinamool Congress. It also points out that several newly registered and loss-making companies have donated more than their turnover, mainly to the ruling BJP, in violation of the Companies Act.

Why this matters: The allegations raised in the petition have serious implications for the integrity of the electoral process and the functioning of investigative agencies. If proven true, they suggest a systemic problem of corruption and undue influence in political financing, which undermines the principles of democracy and fair governance.

The petitioners argue that the alleged misuse of electoral bonds 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. They emphasize the need for a thorough investigation into these serious allegations.

The petition seeks not only a thorough SIT investigation but also the recovery of donated amounts deemed to be proceeds of illicit activities. It asks the authorities to investigate the source of funding of shell firms and loss-making companies that donated to various political parties, as disclosed through the electoral bonds data.

The petitioners contend that some of the country's main investigative agencies, such as the CBI, Enforcement Directorate, and Income Tax Department, have become accessories to corruption by allowing firms under investigation to donate large sums to the ruling party, potentially to influence the outcomes of the probes. They urge the Supreme Court to form an SIT of sitting/retired officers of impeccable integrity to investigate this matter under the supervision of a retired judge.

Key Takeaways

• NGOs file petition in SC seeking SIT probe into alleged quid pro quo in Electoral Bonds Scheme
• Petition claims bulk of bonds are quid pro quo deals between corporates and political parties
• BJP encashed largest share of bonds worth Rs 8,251 cr, followed by Congress and Trinamool
• Petition alleges misuse of bonds led to contracts, regulatory oversights worth billions
• Petition seeks recovery of donated amounts deemed proceeds of illicit activities