Context:

• The cases of Poisoning by thallium as a murder weapon is increasing in India. 

Tragic Incident in Maharashtra: Two Women Accused of Poisoning Five Family Members with Thallium

• Recently, In Mahagaon village (Maharashtra) two women allegedly killed five family members by lacing their food with Thallium.

Overview of Thallium: Properties, Applications, and its Dark History in Poisoning Cases

• Thallium is a chemical element with the symbol Tl and atomic number 81. It is a soft, heavy, inelastic, gray post-transition metal that is not found free in nature. 
• Characteristics: Thallium is tasteless and odourless and has been used by murder as it is difficult to detect.
• Application: It is used in the manufacture of electronics, low temperature thermometers, Optical lenses, and imitation precious jewels it also has use in some chemical reactions and medical procedures.

Thallium Poisoning: Routes of Exposure and Normal Body Levels

• Ingestion (through food or drink) is an important route of exposure. 
• It can also be absorbed into the body by inhalation and skin contact.
• The normal range of thallium in the body is between 0.15 to 0.36 units.

Effects of Thallium Poisoning: Symptoms and Timeline

• Adverse effects are usually delayed by 12 to 24 hours in acute poisoning and reach their maximum by the second and third week after exposure (slow Poisoning cases).
• Hair loss is a classic symptom of thallium poisoning.
• Transient nausea and vomiting are seen first, followed by painful sensation in the arms/hands and legs/feet within 1 to 5 days(sometimes more)
• Other Effects include rapid heart rate and high blood pressure; abnormal heart rythms; respiratory failures; headache; seizures, delirium, and coma

Thallium Poisoning Treatment: Prussian Blue and Other Approaches

• Prussian blue is a pill that can help remove radioactive cesium and thallium from people’s bodies.
• It  traps radioactive cesium and thallium in the intestines and keeps them from being reabsorbed by the body.

• It reduces the time that radioactive cesium and thallium stay in the body, it helps limit the amount of time the body is exposed to radiation.
• Other Treatments: Hemodialysis and hemoperfusion are also used to remove thallium from the bloodstream. 
• At a later stage of the treatment additional potassium is used to mobilize thallium from the tissue.

Source: The Hindu

DOWNLOAD PDF

Context:

• The US branch of Industrial & Commercial Bank of China Ltd.(ICBC) is suspected of being hacked by the ‘Lockbit’.

More on News:

• ICBC, the world’s largest lender by assets, the attack has resulted in disruptions across the US Treasury market.The prolific gang known as Lockbit is suspected to have orchestrated a ransomware attack,  just in the past year — also attacked  Boeing Co. and ION Trading UK.
• Lockbit, a criminal gang with ties to Russia, uses ransomware to encrypt files on its victims’ computers, demanding payment to unlock them. 
  • For example: Earlier, Lockbit threatened to release “sensitive data” belonging to Boeing Co. if it didn’t pay a ransom.
• Recent Lockbit victims include Japan’s biggest maritime port (The Port of Nagoya), the UK’s Royal Mail, California’s finance department and a Canadian children’s hospital.

Source: The Economic Times

DOWNLOAD PDF

Context:

• Chief Justice of India (CJI) D Y Chandrachud stated that the power to punish for contempt of court is not meant to protect judges from criticism but to prevent interference in the dispensation of justice.

More on News: He emphasized that the reputation of judges and courts should be based on their work and decisions. 

Contempt of Court in India: Protecting Judicial Authority and Freedom of Speech Restrictions

• Constitutional Objective: Contempt of court, is a concept that seeks to protect judicial institutions from motivated attacks and unwarranted criticism, and as a legal mechanism to punish those who lower its authority.
• Reasonable Restriction: When the Constitution was adopted, contempt of court was made one of the restrictions on freedom of speech and expression (Article 19 A).
• Constitutional Power: Articles 129 and 215 of the Constitution empower the Supreme Court and high courts to punish for contempt respectively. 
• The procedure to operationalize it was enacted in the Contempt of Courts Act, of 1971.

Understanding Contempt of Court: Distinctions Between Civil and Criminal Contempt in India 

• Civil Contempt and Criminal Contempt. Section 2 B: Civil contempt means willful disobedience to any judgment, decree, direction, order, writ, or other process of a Court, or willful breach of an undertaking given to a Court.
• Section 2 C says that Criminal Contempt means the publication (whether by words, spoken or written, or by signs, or by visible representation, or otherwise) of any matter or the doing of any other act whatsoever which
  • Scandalizes or tends to scandalize, or lowers or tends to lower or tends to lower the authority of, any court, or
  • Prejudices, or interferes or tend to interfere with, the due course of any judicial proceeding: or
  • Interferes or tends to interfere with, or obstructs or tends to obstruct, the administration of justice in any other manner.
• The punishment for contempt of court is simple imprisonment for a term up to six months and/or a fine of up to ₹. 2,000.
• Contempt Procedure: The Contempt of Courts Act, 1971, lays down the law on contempt of court. 
  • Section 15 of the legislation describes the procedure on how a case for contempt of court can be initiated.
  • Contempt proceedings can be initiated either by filing an application or by the court itself suo moto. 
  • In both the cases, contempt proceedings must be initiated within one year from the date on which contempt is alleged to have been committed.
  • In the case of the Supreme Court, the Attorney General or the Solicitor General, and in the case of High Courts, the Advocate General, may bring in a motion before the court for initiating a case of criminal contempt.
  • However, if the motion is brought by any other person, the consent in writing of the Attorney General or the Advocate General is required.
  • The motion or reference made for initiating the case will have to specify the contempt of which the person charged is alleged to be guilty.

What is not contempt of court?

• Fair and accurate reporting and fair criticism: Fair reporting of judicial proceedings will not amount to contempt of court. Nor is any fair criticism on the merits of a judicial order after a case is heard and disposed of.
• Truth as a valid defense: The Act was amended in 2006 to introduce truth as a valid defense if it was in the public interest and was invoked in a bona fide manner.

Source: The Economic Times

DOWNLOAD PDF

Context:

• India is expected to be added to the UK’s list of “safe states”, preventing those who illegally travel from seeking asylum in Britain

UK Drafts Legislation to Include India and Georgia in List of Safe Countries for Immigration

• Draft legislation: The bill tabled in the House of Commons(the UK) on November 8 includes India and Georgia as the countries to be added to the list. 
• Aim: The UK Home Office said the move aims to strengthen the country’s immigration system and help prevent abuse by people making unfounded protection claims.
• Expedite deportation: This move would speed up the process of returning Indians who travel from the country illegally and rule out their chance of seeking asylum in Britain.
• Other countries deemed safe by the UK include Albania, Switzerland, the European Union (EU) and European Economic Area (EEA) states.

Understanding Key Terms in Immigration: Refugee, Asylum Seeker, and Illegal Migrant

• A country can only be added to the UK’s safe states list known legislatively as Section 80AA, if the Home Secretary is satisfied that there is, in general, no serious risk of persecution of its nationals, and; removal of nationals to that country cannot go against the UK’s obligations under the Human Rights Convention.
• Illegal Migration Act 2023: which aims to “stop the boats” by changing the law so that people who come to the UK illegally can be detained and then swiftly returned to a safe third country or their home country.
  • It is described as an important part of the government’s effort to break the cycle, end exploitation by gangs and prevent further loss of life and stop the boats and deter people from making dangerous journeys to the UK.
• The draft legislation adding India and Georgia to the Section 80AA list will be made under the UK’s Nationality, Immigration and Asylum Act 2002, after the ability to do so was implemented through the Illegal Migration Act 2023.

Source: The Hindu

DOWNLOAD PDF

Context:

• The Lok Sabha Ethics Committee  adopted a report recommending the expulsion of a Trinamool Congress MP from the Lower House over a “cash-for-query” allegation.

More on News: Six Votes Favor Report, Four Opposition in Key Decision

• While six members voted in favor of the report, including suspended Congress MP Praneet Kaur, four Opposition MPs opposed it.

Lok Sabha Ethics Committee: Formation, Functions, and Procedures

• Evolution and Establishment of Lok Sabha Ethics Committee
  • A study group of the House Committee of Privileges, after visiting Australia, the UK, and the US in 1997 to look into practices pertaining to the conduct and ethics of legislators, recommended the constitution of an Ethics Committee.
  • The Committee of Privileges finally recommended the constitution of an Ethics Committee during the 13th Lok Sabha. 
  • Lok Sabha Ethics Committee came into force in 2015 with a mandate to oversee the moral and ethical conduct of the MPs.
• Function: Examine complaints relating to unethical conduct of an MP and make recommendations as it may deem fit.
• Composition: Lok Sabha Ethics Committee–  15 members appointed by Speaker
• Term of Members: 1 year
• Procedure for complaints: 
  • Any person can complain against a Member through another Lok Sabha MP, along with evidence of the alleged misconduct, and an affidavit stating that the complaint is not “false, frivolous, or vexatious”. If the Member himself complains, the affidavit is not needed.
  • The Speaker can refer to the Committee any complaint against an MP.
  • The Committee does not entertain complaints based only on media reports or on matters that are sub judice. 
  • The Committee makes a prima facie inquiry before deciding to examine a complaint. It makes its recommendations after evaluating the complaint.
  • The Committee presents its report to the Speaker, who asks the House if the report should be taken up for consideration. There is also a provision for a half-hour discussion on the report.

Establishment and Functioning of Rajya Sabha Ethics Committee

• The first such Committee by any legislature in India was constituted by the Chairman, Rajya Sabha on 4 March 1997, to oversee the moral and ethical conduct of the Members.
• Composition: 10 members appointed by the Chairman of Rajya Sabha.
• Tenure: Committee holds office until a new committee is appointed, the casual vacancies arising are filled by the Chairman from time to time.

News Source: The Hindu

DOWNLOAD PDF

Context:

• The Bihar Assembly unanimously passed  Bihar Reservation Amendment Bill, to increase reservation for Backward Classes, Extremely Backward Classes, Scheduled Castes, and Scheduled Tribes from the existing 50% to 65%. 

Bihar Reservation Amendment Bill – To Increase Reservation Quota Beyond Supreme Court Limit

• Together with the 10% Economically Backward Class (EWS) quota, the Bill will push reservation in Bihar to 75%, well past the 50% ceiling set by the Supreme Court.
• Bills providing for the same increase in reservation in educational institutions and government jobs, which were drafted based on the caste survey conducted by the State government recently, too were passed unanimously through voice vote in the Assembly.
• After the release of Caste Based Survey 2022, the state government has decided to increase the reservation quota for SCs, STs, EBCs and Backward Castes in government jobs in proportion to the increase of their population.

Key Provisions of  Bihar Reservation Amendment Bill:

• According to the legislation, named the Bihar Reservation Amendment Bill, quota for Extremely Backward Class (EBC) will be raised from the existing 18% to 25%; for Backward Class (BC) from 12% to 18%; for Scheduled Caste (SC) from 16% to 20%; and for Scheduled Tribe (ST), the quota will be doubled, from 1% to 2%. 
• The existing 3% reservation for BC women has been scrapped.
• The 10 per cent EWS quota has been earmarked for the poor among the general category and it has not changed. The total quota limit will be effectively up to 75 per cent now and  25 per cent will remain unreserved.
• The pattern for reservation quota has been fixed as per reservation in government jobs for these castes.

Concern regarding Bihar Reservation Amendment Bill:

• The proposal to hike reservation benefits may well end up before the courts since it breaches the 50% ceiling fixed by the Supreme Court in the 1992 Indra Sawhney (famously known as Mandal Commission) case.

News Source: The Hindu

DOWNLOAD PDF

Context:

• The Supreme Court bench returned to its full strength as high court chief justices Satish Chandra Sharma, Augustine George Masih and Sandeep Mehta took oath as judges of the Supreme court.

Evolution and Composition of the Supreme Court of India: A Look at Article 124(1)

• At Present the Supreme Court consists of thirty-four Judges (One Chief Justice and Thirty Three Other Judges).
• Constitutional Provision: Article 124(1)  state that “there shall be a supreme court of india consisting of a Chief Justice Of India and, Until Parliament by law Prescribe a larger Number, Of more than seven other judges.’’
• Originally, the Supreme Court had eight judges (one chief justice and seven others). The Parliament has increased the number of judges over time.

Appointment Procedure: The judges of the SC appointed by President On the recommendation of Collegium of judges.

• The Collegium deliberates on and discusses the names of Chief Justices and senior puisne Judges of the High Courts eligible for appointment to the Supreme Court.
• While recommending appointments to the Supreme Court the Collegium has taken into consideration the following aspects:
  • The seniority of Chief Justices and senior puisne Judges in their respective parent High Courts as well as overall seniority of the High Court Judges; 
  • The merit, performance and integrity of the judges under consideration; and 
  • The need to ensure diversity and inclusion in the Supreme Court by: 
    • representation of High Courts which are not represented or are inadequately represented, in the Supreme Court; 
    • appointment of persons from marginalized and backward segments of society;
    • gender diversity; 
    • representation of minorities.

News Source: The Indian Express

DOWNLOAD PDF

Context:

• The Court of Chief Commissioner of Persons with Disabilities in India delivered two landmark judgments that are poised to reshape attitudes towards Divyangjan (persons with disabilities in India) on a large scale.

Indian Supreme Court Directs Airlines to Enforce Rights of Persons with Disabilities Act 2016

• Additionally, the Court emphasized that all airlines, whether Indian or foreign, operating in the country are responsible for implementing the provisions of the Rights of Persons with Disabilities Act 2016, specifically outlined in sections 40 and 41, along with relevant rules and instructions.

Case No. 14580/1101/2023: 

• Ensuring Accessibility for Divyangjan in Government Offices:  The Court mandated that any government office in the country, be it at the central, state, or local government level, operating from buildings or premises that are not accessible to Divyangjan, must relocate their services to the ground floor or another accessible location within the same facility.
• Significance: This decision underscores the commitment to ensuring equitable access to government services for all citizens, including those with disabilities in India.

Case No. 14061/1141/2023: 

• Addressing Discrimination Against Individuals with Disabilities in Aviation: In response to a complaint regarding the ill-treatment of a person with Autism, at Bangalore Airport by Sri Lankan Airlines, the Court took Suo moto cognizance. 
  • The Court’s findings revealed a lack of awareness and sensitivity towards the needs of individuals with disabilities on the part of airline employees and the Directorate General of Civil Aviation (DGCA). 
• Furthermore, the Court highlighted that Sri Lankan Airlines’ policy, if it necessitates medical clearance for select categories of persons with disabilities before boarding a flight, is inconsistent with global Civil Aviation Requirements.

Navigating Disability: Legal Frameworks and Definitions for Persons with Disabilities in India and the UN CRPD

• Rights of Persons with Disabilities Act, 2016 defines “Person with Benchmark Disability” as “A person with not less than 40% of a specified disability”
• The United Nations Convention on the Rights of Persons with Disabilities (UN CRPD) defines “Persons with disabilities in India include those people having long term physical, mental,  intellectual or  sensory impairments which in interaction with various barriers may hinder their full and effective participation in society on an equal basis with others“.

News Source: PIB

DOWNLOAD PDF

Context:

• This article is based on an Editorial “Speedy disposal of cases against lawmakers: What SC guidelines on the matter say” which was published in Indian Express. The Supreme Court recently issued guidelines to monitor the speedy disposal of criminal cases, addressing the alarming issue of the criminalization of politics against Members of Parliament (MPs) and Members of Legislative Assemblies (MLAs).

Supreme Court Advocates for Lifetime Ban on Convicted Politicians Amid Rising Criminalization of Politics

• Lifetime ban on convicted politicians: Petition demanded banning legislators from contesting elections rather than subjecting them to the six-year ban, as laid down under Section 8(3) of the Representation of People Act, 1951.
• Amicus curiae Vijay Hansaria submitted a report (November 2022)  to the top court pointing out that the number of cases against MPs and MLAs have continued to rise.
• • Increasing  from 4,122 in December 2018 to the present figure of 5,097(doesn’t even include cases in Rajasthan, Uttarakhand, Jammu and Kashmir, and Ladakh, for which data is not available).
  • 41% of these cases are more than five years old, “despite the fact that this court is seized of the matter and has passed various interim orders from time to time to expedite the trial.

Supreme Court Introduces Guidelines for Disposal of Criminal Cases Against Legislators

• Special Bench: The court called for monitoring criminal cases against legislators to address the issue of Criminalization of Politics.
  • Moreover, The special bench has the authority to seek assistance from the Advocate General(AG) or prosecutor.
  • While the court addressed the aspect of plea seeking speedy disposal of cases against MPs and MLAs, it kept open the issue of replacing the 6-year ban with a lifetime one.
• Suo Motu Cases By Chief Justices: The chief justices from high courts(HC) can now initiate suo motu cases for speedy resolution of pending criminal cases involving lawmakers. 
• Guidelines For Trial Courts: The court delegated the task to HCs devise effective monitoring measures.
• Authority To High Courts: The HCs can issue orders and instructions for the efficient resolution of such cases. 
  • They can call upon the Principal District and Sessions Judge to take on the responsibility of allocating “subject cases” to such courts.
• Priority Cases: The priority shall be given to cases against lawmakers that are punishable with death or life imprisonment, addressing the issue of Criminalization of Politics.
  • Cases with 5 years imprisonment or more will also be prioritized.

Criminalization Of Politics: 

• Participation of criminals in politics: Persons with criminal background contest in the election and get selected as a member of parliament or state legislature. 
  • It refers to the situation where the lawmakers became the lawbreakers. 

Alarming Rate of Pending Criminal Cases Against Elected Representatives in India

• After the 2019 Lok Sabha elections, 43% of the newly-elected MPs had pending criminal cases against them, highlighting the issue of Criminalization of Politics..
  • The Association for Democratic Reforms (ADR) is an advocacy group focused on electoral reforms.
• As per media reports of February 2022, the number of pending criminal cases against sitting and former MLAs and MPs had risen to close to 5,000 towards the end of December 2021.

Understanding the Factors Behind the Criminalization of Politics in India

• Muscle And Money Power:  it involves the free use of musclemen to influence the attitude and conduct of the electorate. 
  • The politicians are thriving today on the basis of muscle power provided by criminals. 
  • the political parties and individuals engage in exorbitant spending for vote buying and other illegitimate purposes through these criminals or musclemen. 
  • a link between the politician and criminals in a constituency provides a congenial climate to political crime. 
• Political Control Of Police: and influence over crime investigation. transfers and postings are entirely controlled by elected politicians, a concerning aspect of the Criminalization of Politics. Often, police officials who act impartially and independently are transferred.
• • The governments have formal powers of dropping charges and prosecution, and such powers are exercised to protect their favored criminals and to harass opponents.
• Electoral System And Political Culture: Candidates with huge financial resources, backed by caste alliances and loyal political networks, including those involving criminals, enjoy an edge in elections.
  • 97% MLAs crorepatis in Karnataka’s new Assembly, 55% have criminal charges: ADR report
  • Due to the uncertainties of the first-past-the-post system, political parties are eager to attract ‘strong’ and ‘potentially winning’ candidates, often at the expense of honorable and commendable public figures.
• Failure Of Criminal  Justice System: Massive delays of cases of criminal candidates over the years has made the formal justice system stagnant and inefficient, failing to provide credible and swift resolutions to disputes or punishment for criminals.
• • With over 40 million cases pending in courts, most of them for years and decades, people have lost faith in the formal justice system.
• Among other reasons contributing to the criminalization of politics:
  • a partisan interfering in the investigation of crime and poor prosecution of cases.
  • unwarranted granting of parole and abundance withdrawal of the court cases.

Undermining Democracy: The Far-reaching Implications of Criminalization of Politics in India

• Threat to Democracy: It poses a serious threat to democracy as it undermines the rule of law and democratic institutions. 
  • When politicians with criminal backgrounds hold public office, they can use their power to subvert the justice system and create a culture of impunity.
• Governance Issues: Politicians with criminal backgrounds are more interested in serving their own interests rather than those of the people. 
  • This leads to a lack of good governance, and a failure to address important issues facing the country.
• Corruption: Criminalization of politics often goes hand in hand with corruption. 
  • Politicians with criminal backgrounds use their power for personal gain, which leads to widespread corruption.
  • India ranks 85 in Transparency International’s corruption index.
• Criminalization of Political Parties: Criminalization of politics leads to criminalization of political parties, with criminal elements gaining control of political parties and using them for their own benefit. 
  • This further weakens democratic institutions and undermines the rule of law.
• Public Trust: It  erodes public trust in the political system. 
  • This leads to apathy and disillusionment among the public, with people losing faith in democratic institutions and the rule of law.
• Other impacts: 
  • Betrays the electoral mandate of the voters.
  • Corrodes the fundamental tenets of the party system.
  • Destabilised elected governments.
  • Reduces the value of politics from a transformative tool for social change to serving individual interests.

Judicial Responses to Criminalization of Politics in India

• Public Interest Foundation v. Union of India (2019): The SC ordered political parties to publish the criminal records of their candidates on their websites, social media handles, and newspapers. 
  • The court also directed the Election Commission of India(ECI) to create a framework to ensure that the information on candidates’ criminal records was disseminated effectively.
• Lily Thomas v. Union of India (2013): The SC declared that any member of parliament or state legislative assembly who is convicted of a crime and sentenced to a prison term of two years or more would be disqualified from holding office. 
  • The court also declared that a convicted lawmaker could not contest an election or continue as a member of the legislature while the appeal was pending.
• Association for Democratic Reforms v. Union of India (2002): The SC directed the ECI to issue guidelines to ensure that candidates with criminal records were not given tickets to contest elections by political parties. 
  • The court ordered that candidates must disclose their criminal records in their nomination papers.
• Manoj Narula v. Union of India (2014): The Delhi High Court held that a person cannot be disqualified from contesting elections merely because they have been charged with a criminal offense. 
  • However, the court also held that political parties must not field candidates who have a criminal background.

Charting the Path Forward: Focus on Mitigating the Challenges of Criminalization of Politics in India

• Checking the Nexus Between Crime, Money And Muscle Power: The growing dependence of political parties on criminals for muscle power and “electability” must be stopped. 
  • Parliament, judiciary and executive will have to find common ground to put firm mechanisms in place to deal with increased criminalisation of politics.
• Strengthening of legal framework: Candidates against whom charges have been framed in court for serious offenses should be disallowed from participating in elections by making an amendment to the RPA,1951.
• • The 244th Law commission recommends disqualification at the stage of framing of charges, accompanied by other legal safeguards.
• Fast tracking trials: Expediting the judicial process through a time-bound justice delivery system is needed.
  • This will prevent politicians from using their power to delay or manipulate the legal process.
• Electoral Reforms: The electoral process should be reformed to prevent criminal elements from getting elected. 
  • Mandating the political parties to disclose the criminal records of their candidates,  stricter election funding rules, and increased monitoring of political campaigns.
  • It is necessary to strengthen the ECI by providing it the powers to regulate the actions of the political parties with specific emphasis on scrutiny of the candidate’s application.
  • This practice is prevalent in Germany, Portugal and Spain and needs to be studied and replicated to suit the Indian socio-political conditions.
  • Providing Statutory Status to  the Model Code of Conduct will help in curbing criminalization of politics.
• Internal Democracy In Political Parties: Convicted politicians may continue to influence law-making by controlling the party and fielding proxy candidates in the legislature.
  • Although the RPA 1951 disqualifies a sitting legislator or a candidate on certain grounds, there is no regulation over the appointments to offices within the party.
• Public Awareness: An awareness program for voters, to make them aware of their right to know the criminal background of the person to whom they are going to cast their votes.
  • This can be done through the media, civil society organizations, and educational institutions.

DOWNLOAD PDF

Context:

• This article is based on an Editorial “How political funding influences electoral outcomes: what studies say” which was published in Indian Express. The Supreme Court’s recent hearing on the constitutionality of electoral bonds has brought critical attention to a core aspect of Indian democracy, the funding of political parties.

Understanding Political Funding: Legal Framework and Mandatory Disclosures in India

• Political funding is the crucial means through which political parties secure financial resources to support their day-to-day operations and election campaigns. 
• Legal Framework for Political Funding in India:
  • Entitlement under RPA: As per Section 29B of the Representation of the People’s Act (RPA), political parties have the right to accept voluntary contributions. These contributions can be from individuals or companies, excluding government entities.
  • Mandatory Declaration under Finance Bill Act: Section 29C of the Finance Bill Act mandates political parties to disclose donations exceeding Rs. 20,000. 

Political Funding in India: Exploring Individual Donations and Public Funding Methods

• Individual Donations: Political parties can accept donations from individuals, governed by Section 29B of the RPA-1951.
  • Taxpayers can claim a deduction for 100% of their donation to a registered electoral trust or political party under section 80-GGC of Income tax.
• Public or State Funding:
  • Direct Funding: The government provides direct funds to political parties for election-related expenses. Tax-based direct funding is prohibited in India.
  • Indirect Funding: Parties seek support through access to media, public spaces for rallies, and subsidized transport facilities, permitted in a regulated form.
• Corporate Funding:
  • Donations from corporate entities are regulated by the Section 182 of Companies Act, 2013. Conditions for Corporate Donations:
    • The company must be at least three years old.
    • Approval from the board of directors is mandatory.
• Electoral Trusts Scheme: Electoral trusts established after 2013 must declare details of funds received and disbursed, following Election Commission guidelines.
  • Formation Criteria: Under the scheme, any company registered under Section 25 of the Companies Act, 1956, is eligible to form an electoral trust.
  • Eligibility for Donation: As per Section 17CA of the Income-tax Act, 1961, any citizen of India, a company registered in India, or a firm, Hindu Undivided Family, or association of persons living in India can contribute to an electoral trust.
• Electoral Bond Scheme: First announced during the Union Budget session in 2017. They are interest-free “bearer instruments”, which means that they are payable to the bearer on demand, similar to a promissory note.
  • It allows Indian citizens or a body incorporated in India to purchase bonds, enabling anonymous donations to political parties.

Comparing Electoral Bonds and Electoral Trusts: Funding Dynamics in Indian Politics

• Both schemes were meant to facilitate donations to political parties by corporates and individuals.
• Donation under Electoral Bond Scheme: In the five years since the electoral bonds scheme was introduced, more than half, or 57%, of the funds extended through bonds have gone to the BJP. The party, as per its declarations to the Election Commission, received Rs 5,271.97 crore via bonds between 2017-2022. 
• Donation under Electoral Trust: The electoral trusts have reported a total donation of Rs 2,268.6 Crores during the period, with the number of registered trusts ranging from three in 2013 to 17 in 2021-22. 

Legal Timeline of Electoral Bonds: Court Proceedings and Judgments

• April 12, 2019: A three-judge SC bench issues an interim order directing political parties receiving donations through electoral bonds to submit details of the bonds to the Election Commission of India (ECI).
• March 2021: The SC, dismisses a plea to stay the sale of fresh electoral bonds, disputing the petitioner’s claim of “complete anonymity” for bond purchasers. The court mentions that operations under the scheme are not beyond scrutiny and highlights previous orders for safeguards.
• April 2022: The SC assures petitioners that the Court would take up the matter to hear the constitutional challenge to the electoral bonds scheme. 
• Nov 2023: The Supreme Court reserved its judgment in response to a batch of pleas challenging the validity of the electoral bonds scheme.

Supreme Court’s Concerns and Directives on Electoral Bonds: November 2023

• Anonymity Concerns: The court expressed concerns about influential entities setting up individuals for anonymous political donations through electoral bonds.
• KYC and Anonymity: Chief Justice Chandrachud noted that individuals with KYC accounts could maintain anonymity while purchasing bonds, raising issues of potential quid pro quo arrangements.
• Anonymity and Opposition Donors: The court discussed how anonymity might benefit donors contributing to Opposition parties without facing ruling regime repercussions.
• Data Disclosure by Election Commission: The Supreme Court also directed Election Commission of India (ECI) to produce data on electoral bonds’ contributions till September 30, 2023.

Electoral Bonds Dominate Political Funding Landscape: 2016-17 to 2021-22

• Between 2016-17 and 2021-22, a total donation of ₹9,188.35 crore from Electoral Bonds was received by seven national and 24 regional parties. 
• Out of this sum, the BJP secured ₹5,271.9751 crore, while the remaining national parties collectively amassed ₹1,783.9331 crore, according to the report by the Association of Democratic Reforms (ADR).
• The total donations received by the 31 political parties analysed during the six-year period was ₹16,437.635 crore.
• Overall Composition:
  • 55.90% from Electoral Bonds
  • 28.07% from the corporate sector
  • 16.03% from other sources

Challenges in India’s Political Funding Framework

• Donation and Expenditure Limits in India:
  • There are no donation limits on individuals, and the Finance Act, 2017 removed official contribution limits on companies.
  • There is no legal expenditure limit for political parties at the national or state level, allowing unrestricted spending on campaigns.
• Disclosure Requirements and Electoral Bonds:
  • Parties must disclose donations exceeding Rs 20,000, except for those made through electoral bonds.
  • Parties often split large donations into smaller amounts below Rs 20,000, avoiding disclosure.
• Issues with the Electoral Bond Scheme:
  • Anonymity:  The electoral bonds do not bear the name of the donor. Thus, the political party might not be aware of the donor’s identity.
  • The ability of the party in power to access the information about donors of other parties (through law enforcement agencies) undermines the scheme of electoral bonds on its own terms, i.e., to prevent victimization of donors.
• Changing Landscape of Indian Electioneering:
  • Political engagement has expanded beyond parties and candidates, involving consultancies, campaign groups, and civil society organizations.
  • In the US, lax regulation of third-party expenditure has led to shadow campaigns influencing political outcomes outside traditional regulatory scopes.
  • The evolving political landscape challenges the assumptions underlying India’s 20th-century political funding framework.

The Nexus Between Political Funding and Electoral Outcomes

• High Costs of Elections:
  • The 2019 Lok Sabha elections were labeled the “most expensive election ever,” with an estimated expenditure of Rs 55-60,000 crore, with around 45% spent by the BJP.
  • In the 2014 national elections, candidates reported a median wealth of Rs 23.8 lakh, approximately 27 times the nominal per capita income of India in that year.
• Linear Relationship between Funding and Outcomes:
  • Modern research suggests wealthier candidates from competitive parties reported four times greater wealth on average and were about 10 percentage points more likely to win.
  • 97% MLAs crorepatis in Karnataka’s new Assembly, (ADR report).
• Global Correlations:
  • A research on US congressional elections shows a well-approximated relationship between money and votes for major parties from 1980 to 2018.
  • In another study on legislative elections in Taiwan from 2008 to 2016 demonstrates a significantly positive association between political donations and election outcomes.

Way Forward – Revamping Political Funding 

• Regulation of Donations
  • Some entities, like foreign citizens or companies, may face bans on making donations.
  • Donation limits are essential to prevent undue influence by a few large donors.
  • Example: The US federal law imposes different contribution limits on different types of donors. Some other countries, such as the UK, do not impose contribution limits, but instead, rely on expenditure limits.
• Expenditure Limits
  • Expenditure limits aim to prevent a financial arms race among political parties.
  • Relieve parties from excessive fundraising pressure, allowing them to focus on voter engagement.
  • Example: In the UK, parties are restricted to spending £30,000 per seat contested.
• Public Financing
  • Broadly, there are two ways of implementing public funding. The most commonly used method around the world is to set predetermined criteria.
  • Example: In Germany, parties receive public funds based on their importance in the political system, considering past votes, membership fees, and private donations.
    • German “political party foundations” receive special state funding for their policy-related work.
  • An experiment in Seattle, US, involves “democracy vouchers” where eligible voters receive vouchers to donate to their preferred candidate.
  • However, some recent studies have pointed out that while this system may be more egalitarian, it may also promote more extremist candidates.
• Disclosure Requirements:
  • Disclosure requirements offer a less intrusive way of regulating political funding.

• • Instead of preventing donations, disclosures aim to influence voters against politicians engaged in quid pro quo arrangements.
  • The assumption is that information supply and public scrutiny can impact politicians’ decisions and voters’ choices.
  • The electoral bonds case revolves around finding a balance to reap the benefits of anonymity while preventing quid pro quo arrangements.
  • An experiment in Chile aimed for “complete anonymity” of party funding.
• Striking a balance between transparency and anonymity: Many jurisdictions achieve this by allowing anonymity for small donors while mandating disclosures for larger contributions. 
  • For instance, in the UK, political parties must report donations exceeding £7,500 in a calendar year from a single source. Similar limits in the US and Germany are $200 and €10,000, respectively. 
  • This approach aims to protect small donors from potential victimization and address concerns about quid pro quo arrangements with larger contributors.

Conclusion: 

• There is a need for effective regulation of political financing along with bold Electoral reforms to break the vicious cycle of corruption and erosion of quality of democratic polity.

DOWNLOAD PDF