Electoral Bonds Biggest Extortion Scam, Alleges Rahul Gandhi

Rahul Gandhi, a prominent Indian politician and former President of the Indian National Congress party, made an allegation in December 2020 that the Electoral Bonds scheme introduced by the Indian government in 2018 was the biggest extortion scam in India's history. Here's a more detailed look at the context and facts behind his claim:

What are Electoral Bonds?

Electoral Bonds are a financial instrument introduced by the Indian government in January 2018 under the Finance Act, 2017. These bonds are bearer instruments that can be purchased by individuals, corporations, and other entities from designated banks during specific windows with validity of 15 days. The bonds can then be encashed by recognized political parties within 15 days from the date of issuance. The identity of the donor remains anonymous as the political party receiving the funds is the only entity required to disclose the details to the Election Commission of India.

Allegations of Extortion

Rahul Gandhi made the allegation of extortion during a press conference in December 2020, stating that the Electoral Bonds scheme was being used as a tool for extortion by the ruling Bharatiya Janata Party (BJP) and its associates. He claimed that companies were being forced to buy electoral bonds to secure government contracts or avoid investigations by various agencies.

Evidence and Reactions

Gandhi's allegations were based on reports from various media outlets and whistleblowers within the government and corporate sector. One such report by The Wire, a news website, claimed that a company had been asked to purchase electoral bonds worth ?90 crore (approximately $12 million) to secure a contract from the Railways Ministry. The report also alleged that the company was threatened with investigations by the Enforcement Directorate (ED), a financial investigative agency, if it did not comply with the demand.

The BJP and the government have denied these allegations and termed them as politically motivated. The Finance Ministry issued a statement saying that there was no evidence to support the allegations and that the scheme was designed to bring transparency in political funding. The ED also denied any involvement in the matter and stated that it was an independent agency that acted based on evidence and the law.

Reactions from Experts

Several experts and civil society organizations have expressed concerns over the potential misuse of electoral bonds for extortion and money laundering. Transparency International India, a non-governmental organization that fights against corruption, has called for a thorough investigation into these allegations and for greater transparency in political funding.

Conclusion

While the allegations of extortion through electoral bonds are serious and require further investigation, it is important to note that they are just allegations at this point and have not been proven in a court of law. The Indian government and the BJP have denied these allegations and maintain that the electoral bonds scheme is a step towards transparency in political funding. The issue remains a matter of controversy and debate in Indian politics and society.