Category: Black money & Corruption

Electoral bonds out, black money in

On February 15, 2024, a five-judge Constitution bench of the Supreme Court (SC), headed by the CJI declared the Modi government’s 2018 Electoral Bond Scheme (EBS) as unconstitutional. The four major considerations behind this order are:- The scheme legitimizes the use of black money in political funding; it lacks transparency and keeps identity of the donor anonymous thereby violating the constitutional right to freedom of speech and right to information (Article 19(1)(a)); it gives rise to ‘quid pro quo’ – a legal jargon for a person in the position of power granting favor in exchange for bribe; it denies equality of opportunity to the voters to exercise their freedom to vote in an effective manner (Article 14). The EBS was...
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The practice of offering freebies must stop

Not too long ago, poll freebies used to be an exception. But now it has become a norm with almost every other party promising it Barely a week before the Election Commission of India (ECI) is set to announce the schedule for the polls for Lok Sabha elections when the Code of Conduct will come into force, the Aam Aadmi Party (AAP) has given yet another dose of mesmerizing voters in Delhi with freebies – an acronym for “something given free of charge” – a bizarre practice it started in the February 2020 elections.In the budget for the financial year (FY) 2024-25 presented by the Delhi finance minister Atishi in the assembly on March 4, 2024, she announced the Mukhyamantri...
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SC should declare poll freebies a corrupt practice

When a candidate uses his money to bribe the voter, it is treated as corrupt practice, but when his party bribes voters using ‘public money’ it is not treated the same way Taking a cue from the practice of mesmerizing voters with freebies – an acronym for “something is given free of charge” – started by the Aam Aadmi Party (AAP) in the February 2020 Delhi elections, early this year, in Karnataka elections, the grand old party (GOP) gave five guarantees (a more respectable nomenclature for freebies) on a grand scale. These delivered the intended result. In the just concluded elections in Madhya Pradesh (MP), Rajasthan, Chhattisgarh and Telangana, the guarantees have occupied the centre stage in the manifestos of...
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Rs 2k note exchange: Demonetisation 2.0

Rs 2000 note exchange will not have any impact on black money. It will only help hoarders by exchanging Rs 2000 notes without disclosing their identity In its decision to withdraw Rs 2000 currency notes from circulation announced on May 19, 2023, the Reserve Bank of India (RBI) has stated that they will continue to be legal tender. The notification issued in this regard states:- “…in pursuance of the “Clean Note Policy” of the RBI it has been decided to withdraw the Rs 2000 denomination banknotes from circulation. The banknotes in Rs 2000 denomination will continue to be legal tender.” From the above, prima facie one gets a sense that it is not a demonetization exercise as it happened over...
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Who will end the free-run of freebies?

Political parties don’t want freebies to go. It is their much-cherished tool to harness votes. And they know it works like a charm In the just concluded assembly elections in Karnataka, the grand old party (GOP) Congress had promised five guarantees viz. Gruha Jyoti, Gruha Lakshmi, Sakhi programme, Yuva Nidhi, and Anna Bhagyain in its manifesto. Having got a decisive mandate to form the government, Congress pledged to approve all the five guarantees in the very first meeting of the Cabinet. The big question is: is it worth spending so much of taxpayers money? The guarantees are intended to be a welfare scheme. Under it, the government should ensure that (i) the assistance goes to a person who is desperately...
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Countering the menace of corruption

Funds siphoned off from welfare schemes, meant for the benefit of the poor, is also an act of corruption and must be dealt with with a heavy hand Setting aside the anticipatory bail granted by the Gujarat High Court to an IRS officer in a corruption case on April 17, 2023, the Supreme Court said “Corruption poses a serious threat to society and must be dealt with an iron hand as it not only leads to abysmal loss to the public exchequer but also tramples upon good governance”. The observation of the top court has catapulted to the centre stage a malady that has afflicted India for generations. The Government of India’s standards of financial propriety lays down that “no...
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Stop demonising demonetisation

Demonetisation was a major reform that helped in laying the foundation for inclusive and sustainable growth Delivering a majority 4:1 verdict on January 2, 2023, the Supreme Court (SC) upheld the constitutional validity of the demonetization announced by the prime minister, Narendra Modi on November 8, 2016. But the controversy refuses to die down. Reiterating its stance that the decision was disastrous, the grand old party (GOP) opines that the question of ‘whether the stated objectives of demonetization have been achieved’ was not examined by the SC. Being a policy matter that lies within the exclusive domain of the Union government/executive, its examination by the judiciary was not required; SC’s mandate was to deliver its verdict on the legality of...
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Shun freebies, avoid bankruptcy

The reckless spending of taxpayers’ money on ‘freebies’ is neither recognised policy/custom nor sanctioned in a court of law. Credit: DH File Photo Hearing a PIL seeking directions against ‘freebies’ on August 3, the Supreme Court sought suggestions on the composition of a committee that can go into the issue “dispassionately” and make recommendations. It gave a sense that it is for Parliament, besides the Election Commission, to take the initiative to enact a law on curbing freebies. The Union government’s standards of financial propriety clearly lays down that “no authority shall exercise its powers of sanctioning expenditure to pass an order which will be directly or indirectly to its advantage; and the expenditure from public moneys should not be...
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Poll freebies: Road to economic disaster

Assured of financial help to meet most of their basic needs ‘perpetually’, the freebies cult is changing the mindset of people and making them complacent A few days back, Prime Minister Narendra Modi asked senior bureaucrats to point out deficiencies in government policies. In response, some officials have zeroed in on ‘the freebies promised by winning party in state elections’. In the past, freebie – an acronym for “something given free of charge” – found a place in a corner of the manifesto of parties. In recent years, this has occupied the centre-stage and holds the key to winning elections. For instance, in February 2020, the Aam Aadmi Party (AAP) led by Arvind Kejriwal mesmerised Delhi voters by promising freebies....
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Freebies – road to economic disaster

A few days back, Prime Minister, Narendra Modi asked senior bureaucrats to point out deficiencies in government policies. In response, some officials have zeroed in on ‘the freebies promised by winning party in state elections’. In the past, freebie – an acronym for “something given free of charge” – found a place in a corner of the manifesto of parties. In recent years, this has occupied the centre-stage and holds the key to winning elections. For instance, in February 2020, the Aam Aadmi Party (AAP) led by Arvind Kejriwal (AK) mesmerised Delhi voters by promising freebies. They returned AAP to the seat of power with a thumping majority giving it 62 out of a total of 70 assembly seats. Then, the...
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