Revealing the names of Donors in Electoral Bonds is not good in Public interest: CIC

In News

The Central Information Commission on 21st December held that disclosure of the names of the donors and the donees is not in public interest of the contributions made in electoral bonds.

About

• CIC says that there is no public interest in violating the ‘right to privacy’ of the donors and donees.
• An appeal filed by activist Vihar Durve, inter alia seeking information from CPIO, SBI, about scheme donars and donees led CIC speak on the issue.
• Disclosure of names is in contravention to the provisions contained under section 8 (1) (e) and (j) of RTI Act.
• First Appelate Authority (FAA) also confirmed that

the information relating to electoral bonds issued to various political parties was held by the bank in fiduciary capacity and hence was denied to the appellant.

What is an Electoral Bond?

An electoral bond is like a promissory note that can be bought by any Indian citizen or company incorporated in India from the State Bank of India. These bonds can be donated by the citizen or corporate to any eligible political party of his/her choice. They are similar to bank notes that are payable to the bearer on demand and are free of interest. On January 29, 2018 the government notified the Electoral Bond Scheme 2018.

The Controversy

It has been debated that if electoral bonds are introduced to bring about more transparency then government must not restrain from disclosing the details of the donations made. However many argue that there is no need to disclose the identity of the donors and the donees and even the voters would not know about who made the contribution and to whom it was made.

The opponents have argued that electoral bonds have opened the doors of black money and not disclosing the identity of donors is threatening to the spirit of democracy.