Electoral Trusts Funding Growth After Bonds Verdict
Source:Indian Express ↗
কেন এটি গুরুত্বপূর্ণ
Understanding political finance transparency and the aftermath of the Supreme Court's electoral bonds verdict is vital for governance and electoral reforms under GS Paper II.
সারসংক্ষেপ
Following the Supreme Court's decision to strike down the electoral bonds scheme, corporate and institutional contributions routed through electoral trusts to political parties have tripled, highlighting shifts in political funding mechanisms in India.
মূল বিষয়
- Following the Supreme Court's scrapping of the Electoral Bonds scheme, contributions from Electoral Trusts to political parties have tripled.
- Electoral trusts have emerged as a primary alternative vehicle for corporate and institutional political funding.
- The trend underscores how regulatory changes in political finance shift funding channels rather than entirely curbing opaque or large-scale corporate donations.
গুরুত্বপূর্ণ শব্দ
Electoral Bonds Scheme
A financial instrument introduced in 2018 enabling individuals and corporations to make anonymous donations to political parties, which was struck down by the Supreme Court in February 2024 for violating the right to information.
UPSC context
GS Paper II (Polity & Governance) - Important aspects of governance, transparency, and accountability in political funding.
Companies Act
A statutory enactment regulating corporate governance and funding in India, including rules governing how companies make political donations and establish non-profit electoral trusts.
UPSC context
GS Paper II (Polity) - Statutory frameworks governing corporate contributions and transparency in democratic processes.
Election Commission of India
A constitutional body responsible for administering election processes in India, ensuring free and fair elections, and monitoring political party expenditures and disclosures.
UPSC context
GS Paper II (Polity) - Constitutional bodies, powers, functions, and responsibilities regarding elections.
Supreme Court of India
The apex judicial authority of India that interprets the Constitution and can invalidate legislative measures or executive schemes violating fundamental rights, such as the electoral bonds verdict.
UPSC context
GS Paper II (Polity) - Structure, power, and functioning of the judiciary and judicial review.
প্রিলিমস ফাঁদ
Electoral trusts are statutory bodies created directly by the Election Commission of India to issue electoral bonds.
Electoral Trusts are not government bodies or departments; they are Section 8 private non-profit companies approved by the CBDT, and they are distinct from the scrapped Electoral Bonds.
সংযুক্ত স্থির ধারণা
What are the core regulatory provisions governing Electoral Trusts and political donations in India?
- Legal Status: Registered under Section 8 of the Companies Act, 2013, functioning strictly as non-profit intermediaries for political funding.
- 95% Rule: Mandated to distribute at least 95% of total contributions received in a financial year to registered political parties.
- Tax Oversight: Approved and regulated by the Central Board of Direct Taxes (CBDT) under the Electoral Trusts Scheme, 2013.
- Corporate Limits: Section 182 of the Companies Act permits eligible companies to make direct political donations subject to profit ceilings.
আন্তঃবিষয় প্যাটার্ন
Political Funding + Corporate Governance + Article 19
The shift from anonymous bonds to Electoral Trusts revives debates on corporate governance, Section 182 limits under the Companies Act, and the fundamental right to information under Article 19(1)(a).
Expect statement-based questions on Electoral Trusts: registration under Companies Act Sec 8, 95% payout rule, and CBDT approval guidelines.
সংযুক্ত PYQ · 1
সংযুক্ত PYQ · 1
- 2024MainsGS2
Public charitable trusts have the potential to make India's development more inclusive as they relate to certain vital public issues. Comment.
