Parties in power attract lot of donations from corporates in anticipation of favours

Noted social activist and former IAS officer EAS Sarma has described the Electoral Bond Scheme is a big scam saying it is a natural party the party in power will attract a lot of donations from the corporates in anticipation of favours and mooted introduction of a Model Code of Conduct for the Central Election Commissioners.

He strongly advocates a model code of conduct for all the three members of Election Commission of India (ECI), which is conducting the world's largest democracy's parliamentary elections along with Assembly elections for a few States simultaneously. Due to the gigantic task ahead, they are as constitutional authorities need to come under public scrutiny. Sarma said the Constitution in its letter and spirit as enshrined by Dr BR Ambedkar vests all the authorities with accountability. Hence, there should not be any scope in future for criticism by enforcing a model code of conduct for them. In an exclusive interview to Bizz Buzz, Sarma said there is bound to be some prejudice or influence when corporate donations are legally allowed in the form of electoral bonds.

What are your views on the controversial bonds made public by SBI on the directive of the Supreme Court of India?

The Electoral Bond Scheme (EBS) was the culmination of a series of statutory amendments introduced by the present NDA government to render political donations by corporates totally unrestricted and opaque, knowing well that it was the BJP that would gain most. In short, this is nothing but a huge electoral scam. Dr Ambedkar while presenting the draft Constitution to the Constituent Assembly on November 25, 1949, said: "However good a Constitution may be, it is sure to turn out to be bad because those who are called to work it, happen to be a bad lot." I believe that each one of the ECI members individually and the commission as a collective body, should bear in mind the apprehension expressed thus by Dr Ambedkar and remember that, the extent to which the objective of Article 324 will be achieved, will depend on how one exercises the authority under Article 324.

Is it wrong to contribute funds to political parties legally?

In the sixties, after furore in the Parliament, the then government amended the Companies Act to ban corporate donations. Later, with electioneering becoming a profitable business affair, political parties started spending money on electioneering, which in turn made them seek corporate funding. The Companies Act was amended to permit private companies to donate but with a ceiling of 5 per cent on the proportion of donations w.r.t profits. Meanwhile, when there was criticism against political parties getting funds from foreign sources, a new law, Foreign Contributions (Regulation) Act was introduced in 1976 to impose a total ban. It was replaced later in 2010 with a more or less equally stringent successor law, FCRA, 2010.

When a new Companies Act was introduced in 2013, the UPA government relaxed the ceiling from 5 per cent to 7 ½ per cent. In 2013, I filed a PIL in Delhi High Court against Congress and BJP for receiving funds from foreign sources in violation of FCRA 1976/2010. The Delhi HC ordered prosecution of both Congress and BJP in 2014. The two parties contested the judgement before the SC but lost their appeals. I then demanded prosecution of both parties.

This triggered a series of unfortunate responses from BJP which retrospectively amended FCRA 1976/2010 to allow foreign companies to give donations through their Indian subsidiaries, which I challenged before SC. The case is pending.

As if it was not enough, the NDA government removed the ceiling of 7 ½ per cent under Companies Act and introduced the egregious EBS, which I protested then. Why do some parties who received funds allege that the ruling party is engaged in quid pro quo deals?

EBS could be for quid pro quos (not taking action against violators of law, amending environmental and mineral laws to help corporates etc), intimidation, extortion of companies for funds (by asking ED/ CBI/ Income Tax to raid). Since it is only the ruling party that has the enforcement agencies at its disposal, it is that party that has gained.

What is the general practice followed in other countries to receive funds from the corporates and businessmen?

Electoral corruption is there in many developed countries but an independent press does expose the adverse implications of such corruption for the national interest.

Is it a fact that the ruling party received more contributions through electoral bonds than entire expenses being incurred for conducting general elections?

In fact, it is nothing but an attempt to make a mockery of democracy. The elections as per conservative expenses might be costing less than Rs 2,000 crores whereas the unconstitutional electoral bonds might have brought around Rs11,000 crore towards funding the political parties. Maybe the funding received by the ruling party might have exceeded the estimated election expenditure being incurred by the Government of India. The apex court in its ruling also found fault with the collection of funds through electoral bonds.

Is there any other way where we can have electoral bonds without any scope for complaints for concealing information or corrupt practice?

I have been campaigning for a total ban on corporate funding as it discriminates against candidates having no means to fight elections. State funding is the only solution to it. Of course, independence of the enforcement agencies and independence of the Election Commission are the most essential requirements.

What is your suggestion to implement electoral reforms?

In addition, there are presently limits to election expenditure by individual contestants and if they exceed, it amounts to deemed corruption, calling for disqualification. The Commission has not been enforcing it. I have been asking the Commission to act suo moto.

What is your recommendation for enforcing a Model Code of Conduct for Central Election Commissioners?

I strongly believe that all the proceedings of the Election Commission of India should be transparent and compliant with Article 19 of the Statute. Any information should be accessible without any curbs under the provisions of the Right of Information Act. To ensure complete transparency, all the proceedings should be put on public domain. Even dissent notes by any member should also be made public. The ECI portal should display complaints received from individuals, complaints on violation of Model Code of Conduct by any political party or an independent candidate should also be put on the portal with speaking orders on the disposal issued by the ECI. I also suggest that the commission should be accessible to all political parties without any discrimination whenever they want express their concern on issues like usage of Electronic Voting Machines (EVMs).