Mumbai has the largest share of electoral bonds sold since inception

Top four cities account for bulk of money coming in through the scheme

Mumbai accounts for the largest share of electoral bonds sold since inception; the donation route was ruled unconstitutional by the Supreme Court (SC) on Thursday.

The total value of bonds sold in Mumbai was Rs 4,009.4 crore, according to data from New Delhi-based Association for Democratic Reforms (ADR). The data is from March 2018 to January 2024. It is followed by Hyderabad, Kolkata, and New Delhi. The four cities together account for over Rs 13,222 crore worth of bonds sold.

The SC has ruled that the anonymous nature of the instruments, which also have no ceiling on donations, removed earlier limits on corporate funding. The apex court has reinstated these limits by removing the scheme.

The court observed that businesses can have a larger influence on the political process than individuals.

Company donations can influence policy in a way favourable to the donors. Mumbai is home to India’s largest conglomerates and the largest source of taxes for the government.

The total value of bonds sold in various tranches has neared $2 billion. The scheme began in 2018. It sold over Rs 5,000 crore by April 2019, ahead of the elections at the time. It has since sold for over twice that amount. The total number has reached Rs 16,518.1 crore.

The ADR, in an October 2023 update on the Electoral Bond Scheme, noted that the route seems to be primarily used by those with deep pockets, although bonds are available in denominations as small as Rs 1,000.

Most of the money came in through bonds in the denomination of Rs 1 crore.

“94.25 per cent, or Rs 12,999 crore, of the total value of bonds purchased were in the denomination of Rs 1 crore, indicating that these bonds are being purchased by corporates rather than individuals,” according to the note.