A report by the Association for Democratic Reforms (ADR)
According to a recent report by the Association for Democratic Reforms (ADR), political parties have encashed electoral bonds worth Rs 3,429.56 crore in the financial year 2019-20.
Of this, the BJP declared a total income of Rs 3,623.28 crore in 2019-20 but spent only Rs 1,651.022 crore, or 45.57%, of it, the report said, according to a report by Association for Democratic Reforms (ADR). The BJP’s income forms 76.15% of the total of the seven parties.
- Electoral bonds are interest-free holding instruments announced in the 2017 Union Budget. These are used to anonymously donate money to political parties.
- Electoral bonds are sold in multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore. State Bank of India (SBI) is the only bank authorized to sell them.
- Any political party which is registered under the Representation of the People Act 1951 and which has secured at least one percent of the votes in the recent general elections or assembly elections, is eligible to obtain electoral bonds.
- Donors can buy bonds and later donate to the political party of their choice. That bond can be redeemed by that party through its verified account within 15 days.
- There is no limit to the number of bonds an individual or company can purchase.
- If a political party fails to encash the bonds within 15 days, those bonds are deposited by SBI in the Prime Minister’s Relief Fund.
Source – The Hindu