Need to learn lessons from electoral bonds scheme, says FM Sitharaman

Sitharaman observed that more people are investing directly in stock market. Finance minister noted stability of Indian stock market, advocating for it to operate independently

Finance Minister Nirmala Sitharaman on Friday stressed the need to learn lessons from the electoral bonds scheme to ensure that more transparency is brought in the system. 

Speaking at the India Today Conclave 2024, Sitharaman said the electoral bonds brought in a system which was not perfect, from a system that was completely imperfect. 

“Our effort should be to learn from this. I am not commenting on whether there will be a law, but we will have to introduce elements of lessons from this to make sure that there is transparency which is progressively better,” Sitharaman said. 

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She also said loss-making or shell companies should not be making such donations and it is an issue to be looked into. “If corporates can fund, they can but of course, under which scheme of things or which law will have to be worked out,” the FM said. 

Sitharaman denied any link between the functioning of investigative agencies, including ED (Enforcement Directorate) raids, and electoral funding to the ruling party, saying these allegations were just assumptions.

"What if the companies gave the money, and after that, we still went and knocked at their doors through. Is that a probability or not...It is an assumption that the ED went and knocked at their doors, and to save themselves they came up with funds. The second assumption is that are you sure that they have given (electoral bonds) to BJP. What if they probably gave to regional parties,"

Congress leader Rahul Gandhi alleged that the electoral bonds scheme was the world's biggest extortion racket and a "brainchild" of Prime Minister Narendra Modi. Speaking at a press conference in Thane, Gandhi claimed that the funds obtained through the scheme were used to split parties like the Shiv Sena and NCP, and topple governments.

“Some years ago, the prime minister claimed to have designed the electoral bonds (scheme) to clean up the political finance system. It turns out that this was the way of extorting money from India's largest corporates. It was meant to intimidate corporates into giving money to the BJP....It is the largest extortion racket in the world....I hope investigation takes place," he said.

Delhi cabinet minister Saurabh Bharadwaj asked if the BJP would accept receiving funds from companies that were attached by the Enforcement Directorate in connection with money laundering.