BREAKING| Plea In Supreme Court For SIT Probe Into Electoral Bonds 'Scam', Alleges Quid Pro Quo Between Corporates & Political Parties

A petition has been filed in the Supreme Court seeking the constitution of a Special Investigation Team to investigate the alleged instances of quid pro quo arrangements between corporates and political parties through Electoral Bonds donations

The petition filed by NGOs Common Cause and the Centre for Public Interest Litigation (CPIL) alleges that a scam worth crores of rupees is involved in the Electoral Bonds matter, which can be unravelled only through an independent investigation under the monitoring of the Supreme Court.

The data which was disclosed to the public after the Supreme Court struck down the anonymous electoral bonds scheme showed that the bulk of the bonds appear to have been given as quid pro quo arrangements by corporates to political parties either : (a) to secure government contracts or licenses, (b) to secure protection from investigations by CBI, Income Tax Department, Enforcement Directorate, (c) as consideration of favourable policy changes.

"The data as published by the ECI on its website exposed how quid pro quo arrangements have potentially been made between large corporates and political parties in the last 6 years through the use of electoral bonds. The data shows private companies have paid crores of funds to political parties either as “protection money' for protection against agencies under the central government or as a “bribe” in return for undue benefits. In some instances, it has been seen that the political parties in power at the centre or in states have apparently amended policies and/or lawsto provide benefits to private corporatesat the cost of public interest and the public exchequer," 

Data has further shown that various loss-making companies and shell companies were donating huge sums to political parties through electoral bonds. It is argued that these shell companies were used as conduits to launder illicit money through electoral bonds.

"In the Electoral Bond scam, some of the country's main investigative agencies such as the CBI, Enforcement Directorate and the Income Tax Department appear to have become accessories to corruption.Several firms which were under investigation by these agencies have donated large sums of money to the ruling party, potentially to influence outcomes of probes," the petition stated.

The petition cited news reports regarding electoral bonds purchased by certain companies such as Megha Engineering and Infrastructures Ltd,  APCO Infratech Private Limited (APCO), Future Gaming and Hotel Services, Grasim Industries, IFB Agro Limited, Infina Capital Private Ltd. (Infina), Aurobindo Pharma, Vedanta, Bharti Airtel Limited.

The petitioner also alleged that several pharma companies, which were under regulatory scanner for manufacturing substandard drugs, also purchased electoral bonds. The petitioner argued that such arrangements of quid pro quo are in clear violation of the Prevention of Corruption Act, 1988.

In this backdrop, the petitioners sought for a court- monitored investigation by an SIT into the "instances of apparent quid pro quo between public servants, political parties,commercial organisations, companies, officials of investigation agencies and others, and other offences as highlighted in the petition."

They also sought direction to the authorities to investigate the source of funding of shell companies and loss- making companies to various political parties.

Further, the petitioners sought direction to the authorities to recover the amounts from political parties as donated by companies to these parties as part of quid pro quo arrangements where these are found to be proceeds of crime.

The petition has been filed through Advocate Prashant Bhushan.