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Modi Govt messes with rules to allow BJP to cash bonds that are about to expire.

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According to the State Bank of India, on May 23, 2018, some election bond holders arrived at the bank’s main branch in New Delhi with bonds worth Rs 20 crore. Half of the bonds were purchased on the 3rd. May 2018 and the other half on May 5, 2018. Bonds purchased on both days will be settled in cash. Even though the 15 day debt repayment period has ended.

(Illustration: The Wire)

New Delhi: New disclosures by the Election Commission reveal that ahead of the 2018 Karnataka Assembly elections, the central government had scrapped the electoral bond rules and allowed the ruling BJP to immediately cash in on the bonds, which had expired. It has expired.

Reporters Collective has provided information on this matter in a report. He said this after people of the Bharatiya Janata Party (BJP) reached the bank to collect money from bonds that were about to expire. The Union Finance Ministry led by late BJP leader Arun Jaitley has called on the State Bank of India (SBI) to be forced to accept election bonds worth Rs 100 crore.

In a 2019 report by Reporters Collective, as per official records received by Commodore Lokesh Batra (retired), SBI cashed the bonds two days after the legally mandated 15-day period expired. Unrecognized political parties are allowed to accumulate election bonds of Rs 10 million.

Collective said that when this matter was reported in 2019, it was not yet known which political party had made use of the Union Finance Ministry’s donation.

A look at the details at the time obtained by the Collective and current disclosures show that ‘BJP took the expiring bonds to SBI’s Delhi branch on May 23, 2018. The expiring bonds were cashed. from the BJP on the orders of the government. After a quick communication between SBI’s Delhi branch, the company’s headquarters in Mumbai and Union Ministry of Finance officials

The BJP’s own disclosures which were made public by the Election Commission. It shows that the Union Finance Ministry’s interpretation of rules and illegal orders against SBI allowed the party to withdraw Rs 10 crore worth of bonds that were about to expire.

Full story

According to SBI’s report to the Union Ministry of Finance, on May 23, 2018, “certain election bond holders” arrived at SBI’s main branch in New Delhi with bonds worth Rs 20 crore, half of the bonds. The other half was purchased on May 3, 2018, and the other half was purchased on May 5, 2018. On both dates, the 15-day period for redeeming purchased bonds has expired.

But bondholders requested that the ’15 calendar day’ rule be changed and their money returned. This is because it will be charged within ’15 working days’ as per SBI.

The document states that SBI’s New Delhi branch informed the company’s Mumbai headquarters on the same day. The next day was on May 24, 2018. Murtivanjay Mahapatra, the then deputy managing director of the bank, has written to the Union Ministry of Finance on behalf of SBI Chairman Rajneesh Kumar asking whether he should allow bondholders to cash in their expired bonds. Should this be allowed?

The Ministry took immediate action. On the same day, the then deputy director of the ministry, Vijay Kumar, responded, “It has been clarified that the rule refers to a total of 15 days, which includes non-working intervening days…”

In this sense, the period for raising bonds is over, Kumar added. “Due to the issuance of bonds in the previous period (window), it was found that some clarity was lacking. Holders of SBI 10 A bonds purchased before May 2018 may be allowed to withdraw their deposit. Bond within ’15 working days’ At the same time, he said ‘no such facility will be established in the future’.

It explained that in principle, expired bond money would be given to the Prime Minister’s National Relief Fund.

The letter, which was approved by Secretary Economic Affairs and SC Garg, a senior official of the department. It was sent to the SBI Chairman on the same day.

SBI Head Office informs main branch in New Delhi. and allowing expiring R10 million bonds purchased on May 5, 2018, to be cashed before the close of business that day.

Documents show that another bond worth Rs 10 crore bought on May 3, 2018, was sent to the Prime Minister’s Relief Fund. Because it falls within the scope of The ’15 working days’ ‘facility’ stipulated by the Union Ministry of Finance is outside .

The violations of the electoral bond law do not end here, the period in which the BJP received these bonds is also against the project.

According to rules notified in January 2018, there was a 10-day window for four bond sales in January, April, July and October. In 2018, the Prime Minister’s Office ordered the Ministry of Finance to violate its own rules. and opened an additional ‘special’ window of 10 days for bond sales ahead of the Karnataka elections.

The PMO application was first filed by Union Finance Ministry officials in April 2018, just three months after the rules were notified. Later it became a tradition, for example, a special 10-day window for selling bonds was opened in December 2022 ahead of the Gujarat Assembly elections as well.

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