Rajya Sabha MP Kapil Sibal has raised serious allegations against the electoral bonds scheme, labeling it a “very big scam” and demanding a thorough investigation into its operations. Speaking at a press conference on Friday, Sibal called for the establishment of a special investigation team (SIT) composed of court-appointed officials to delve into the alleged quid pro quo and irregularities associated with the scheme.
As a senior advocate leading the arguments for the petitioners in a Supreme Court case challenging the legality of electoral bonds, Sibal expressed his concerns regarding the implications of the scheme for the integrity of India’s political landscape. He contended that the electoral bonds mechanism was “illegal” and primarily designed to enrich a single political party, effectively sidelining any real competition from others.
Sibal’s remarks came shortly after the Election Commission (EC) published data on electoral bonds on its website, a move that has drawn public scrutiny. He accused the BJP-led central government of intentionally creating a framework that favors its political dominance. “The person who started this scheme was our former finance minister, Arun Jaitley,” Sibal stated. “He thought that in this manner, no political party would be able to compete with us (BJP), and he was proven right. The one who has money can play the game.”
The MP emphasized the need for an investigation to ascertain which political party received donations through these bonds. “The question is, whom did the bonds go to? The bond numbers can be found out; it is a matter of investigation,” he asserted.
When questioned about the absence of major business groups, such as Adani and Ambani, from the recently released data, Sibal refrained from making specific allegations. “We are jumping the gun. There may be a connection between some of those big companies and subsidiaries or some other kind of companies. This is too early to answer,” he cautioned. He maintained that while he had not made direct accusations against any corporation, the overarching issue of the scheme being illegal warranted scrutiny.
Sibal pointed out that there exists an evident element of quid pro quo associated with the electoral bonds scheme, stating, “Since there is an element of quid pro quo which is obvious, prosecution under the Prevention of Corruption Act will happen. However, because the Enforcement Directorate (ED) has taken an overdose of sleeping tablets, it may not happen immediately, but it will happen.” He asserted that either the investigative agencies would awaken to their responsibilities or the courts would compel them to act.
Continuing his critique, Sibal highlighted the pattern of donations made by individuals prosecuted by the ED and the Central Bureau of Investigation (CBI). “Those prosecuted by the ED and CBI have been generous enough to give donations to political parties,” he noted. He suggested that those facing proceedings often managed to avoid repercussions after making donations.
Sibal classified the entities involved in this complex web of political financing into three categories: those under investigation, entities with vested interests not currently facing proceedings, and shell companies. He stated that some donor companies reporting losses or profits less than their donations also merit investigation.
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“This money is a form of bribe,” he asserted, suggesting that if it was used for elections, it qualifies as part of a significant scam. Sibal remarked, “As I said, there are two big scams in India—demonetization and this. Money had to come from Swiss banks but has come from these people,” taking a pointed jab at the central government.
Sibal also indicated that gaps exist in the understanding of financial flows related to PM-CARES, implying that these funds likely came from industrialists.
Prominent companies involved in purchasing electoral bonds include steel tycoon Lakshmi Mittal, Sunil Bharti Mittal’s Airtel, Anil Agarwal’s Vedanta, ITC, and Mahindra and Mahindra, among others. Following a directive from the Supreme Court, the State Bank of India (SBI) shared data regarding the electoral bonds sold, indicating that a total of 22,217 bonds were purchased between April 1, 2019, and February 15 this year, with 22,030 redeemed by political parties.
As the call for investigation intensifies, the implications of Sibal’s allegations could have far-reaching consequences for the electoral bonds scheme and the future of political financing in India. The demand for an SIT reflects a growing concern over transparency and accountability in political donations, an issue that remains pivotal in safeguarding the integrity of the electoral process.
