"If Electoral Bonds Are Not There...": Nitin Gadkari Points Out Drawback

Union minister Nitin Gadkari today said that the scrapping of Electoral Bonds scheme would open the gates for black money and all parties should think about developing a better system. In an exclusive interview with NDTV Editor-in-Chief Sanjay Pugalia, Mr Gadkari supported the Electoral Bond Scheme that was developed when the late Arun Jaitley was the country's finance minister.

"It is a fact that money is needed to contest elections. Every party needs that," he told NDTV.

"This scheme was made with the idea that parties would get money through bonds and it will help push the economy if you want to make it number one," Mr Gadkari said, pointing to Prime  Minister Narendra Modi's ambitions on the economic front. "What was wrong with that," he questioned.

Declaring that he would not comment on a decision of the Supreme Court, Mr Gadkari, however, pointed out another drawback of a ban. If electoral bonds are banned, money would still come in, only in the form of black money, he said.

"It you do not allow (electoral) bonds, people will take money as number two. This will happen anyway," he said.

Earlier this month, the Supreme Court had scrapped the Electoral Bond Scheme, objecting to the unlimited and undisclosed funding through corporate donations that come with strings attached.

"Political contributors get access... this access leads to policy making... because of the nexus between money and voting. Financial supports to political parties can lead to quid pro quo arrangement," Chief Justice of India Chandrachud had said.

Mr Gadkari pointed out that electoral bonds "will be purchased by people who are wealthy".

"Those wealthy would be contractors. Or have made it big in trade or industry. So it is not right to link it to that (quid pro quo)," he said.

When it was pointed out that electoral bonds can bring black money into the system, Mr Gadkari said, "How can money that create growth, and generate employment and revenue be called black money? The problem is money that is taken outside the country and dumped elsewhere".

The top court had called the Electoral Bonds scheme unconstitutional, saying information about funding of political parties is essential to make electoral choices since the system leads to tweaking of the country's policies in favour of the donor. While Indian election system involves secret ballot, the cloak of anonymity cannot be extended to political donations above the Rs 2000 threshold, the court had said.