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Opinion: The electoral bonds act akin to a ‘token’ in the hawala model

Opinion: The electoral bonds act akin to a ‘token’ in the hawala model

Introduced by the BJP government in 2017, the electoral bonds scheme seems to be a systematic design to route the black money of the ruling political party at the Centre through its crony corporates, writes the author.

Hawala is an unofficial mode of transferring cash across international borders, bypassing banking and other financial channels. According to a 2013 report by the international organisation, Financial Action Task Force (FATF), to which India belongs, hawala involves four parties: “the criminal customer, controller, collector and transmitter.” The controller instructs his collector, usually in a foreign jurisdiction, to collect the funds from the criminal customer. The collector sends the controller a ‘token,’ usually a copy of a banknote or its serial number for identification, which is then passed on to the criminal customer through WhatsApp or email. The collector hands over the ‘token’ to the criminal customer and receives cash which then is transmitted to the controller through a transmitter. The criminal customer informs or hands over the ‘token’ to the controller as proof of payment to the collector. Thus, the transaction is concluded safely and with complete anonymity of the criminal customer, as the ‘token’ acts as the sole mode of identification to the collector and transmitter.

 

 

The Union government with its anti-money laundering laws makes an earnest attempt to curb this practice, as this hawala route is primarily used to fund illegal, and oftentimes, terrorist activities. But what if a government scheme, perhaps, inadvertently promotes such a practice to route political parties’ illegal money into the system? This is the curious case of ‘electoral bonds’ – the ‘token’ in the hawala transaction that is legitimised for electoral funding.

Electoral Bonds and their anonymity

Electoral bonds (EBs) were introduced by the ruling BJP government in the 2017 Union Budget, with a view to curb cash donations to political parties. Electoral bonds are bearer instruments that allow anyone, including corporates in India and abroad, to donate an infinite sum of money to any political party without revealing their identity. This is done by subscribing to EBs through the State Bank of India (SBI), which is the sole authorised dealer to issue electoral bonds. This was introduced by then Finance Minister Arun Jaitley, through a Finance Bill. He argued that the anonymous character of electoral bonds will enable anyone to donate without fear of being victimised by any political party and “will ensure transparency.’

‘EBs has the possibility of misuse’

However, the Election Commission, in one of its didactic submissions to the Supreme Court, highlighted the serious repercussions and impact EBs would have on the transparency aspect of funding to political parties. Alarmed over the larger insinuations of the Union government’s move, the then RBI governor Urjit Patel’s laconic yet sedulous reminder, in September 2017, to Arun Jaitley underscores how puzzled he was when he stated, “We are concerned that the issue of EBs as bearer instruments in the manner currently contemplated has the possibility of misuse, more particularly through the use of shell companies. This can subject the RBI to a serious reputational risk of facilitating money laundering transactions.”

 

 

Selective anonymity 

Many countries, including Brazil, Germany, France and Chile, are on the path to restricting or banning corporate/private funding of elections, as the blatant quid pro quo would certainly result in fiscal crises and cheerleaders of crony capitalism may well propel elected governments. In India, this has been further exacerbated by the murkier modus operandi with which farm laws were enacted and the outright selling of airports and other public assets, which are indelible blotches on the current political dispensation. This underlines the government’s fathomless geniality with corporate houses and may well debilitate the country's fiscal foundation itself.  

To a request under RTI by Association of Democratic Rights (ADR), the State Bank of India (SBI) said that out of Rs 3,429 crore of the total value of EBs generated by the bank, the ruling BJP alone devoured a whopping Rs 2,606 crore – 76% of the total bonds issued so far. Whereas, the major opposition party, Congress, received a mere 9% of EBs. 

Further, the anonymous nature of the EBs is not only preposterous but also effectively destroys any citizen or even judicial bodies’ inquisitive pleas to unravel donor details. Further, only the ruling party will be aware of the identities, as the authorised dealer – the State Bank of India is technically under the purview of the Union government, which makes the anonymity of the EBs ‘selective.’

 

Whitewashing political black money

The contours of EBs entail serious scrutiny as they may traverse far deeper than the apparent corporate hegemony. The anonymity clause helps the ruling party. It can conceal the money it coughs up from many of its illegitimate sources and route them abroad through subterranean hawala channels and bring it back into the country through legal financial channels – in the form of fictitious exports of goods or services using shell companies. The funds, thus received, could be used to subscribe to electoral bonds, as the ruling party alone can identify the details of the subscriber due to the selective anonymous nature of the bonds.

This would also enable anyone to subscribe to the electoral bonds and hand them over to the political party for identification. Thus, electoral bonds will act akin to a ‘token’ in the hawala model, to identify a donation and whitewash a ruling political party’s black money and bring it back into the financial system. Further, selective anonymity results in selective accountability. The ruling party can identify the donors and the Union government, with its vast administrative paraphernalia, can persecute a corporate house that is subscribing EBs for opposition parties. At the same time, the government may turn ‘Nelson’s eye’ towards donations received to the Union ruling party through EBs. This was reinforced by the then Finance Minister Arun Jaitley, when he said, “(For) donors who buy these bonds, their balance sheet will reflect (the purchase) and the donor will know which party he is depositing money to. The political party will file a return with the election commission.” 

The FM seemed to be batting the opposite, as, if the balance sheet reflects the purchase of EBs coupled with details of the donor with SBI – the intermediary under the control of the Union government – the particular donor can be identified by the ruling party at the Centre. 

Jaitley’s statement is proof that the anonymity of EBs is ‘selective’ and actionable at the hands of the ruling party at the Centre. This will discourage corporates from donating to an opposition party, fearing victimisation and thus creating an undue imbalance in electoral funding. The Achilles-heel of the case is the exponential swelling of shell companies ever since the EBs came into play. The Union government’s move to strike down a whopping 3.8 lakh of fictitious entities between 2018-21 via a special task force clearly supports the searing indictment made by the RBI that EBs, along with these companies, accelerate money laundering. 

While the Modi government claims credit for various anti-black money and anti-money laundering measures, including demonetisation, the EBs remain quite antithetical to these claims. The ‘bearer’ nature coupled with selective ‘donor anonymity’ converts electoral bonds as equivalent to ‘cash with a promise to pay the bearer,’ leaving no trail of the transactions.

 

 

In fact, electoral bonds could even be used to bring back demonetised black money into banking channels in the form of anonymous donations, which the ruling party at the Centre alone will be aware of. Thus, electoral bonds will enable round-tripping of black money into the system, which is a threat to the political economy of the country. 

(Views expressed are the author’s own)

Puhazh Gandhi P is an advocate and the state joint secretary, NRI Wing, DMK, and executive coordinator of the Dravidian Professionals Forum. He is an alumnus of NYU, NUS and JNU.

 
 
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On World Mental Health Day, can we please normalise extraordinary amounts of suffering?

In Buddhist cosmology, hell realms and heavenly realms are both considered too unpleasant and too pleasant respectively for a being to attain enlightenment. But the human realm is considered ideal, with just the right amount of suffering...

 
 
Silhouette of a person staring into the sunsetIMAGE CREDIT: PICXY.COM/DREAMWORKS
VOICES MENTAL HEALTH MONDAY, OCTOBER 10, 2022 - 12:48

This World Mental Health Day, I am thinking of that almost universal condition on this planet, to varying degrees: childhood trauma. Of how it shapes us as adults. I could talk about its effect on a child’s brain development. I could talk about inter-generational trauma, how it gets passed on from parent to child. But I want to talk about slightly tangential things instead, using some perhaps dodgy analogies.

Not to dive right in, but the first Noble Truth taught by the Buddha is that suffering/dissatisfaction (dukkha in Pali) exists. I paraphrase it sometimes to mean that suffering is a part of life. The psychiatrist M Scott Peck has paraphrased it as “Life is difficult.” In the next three Noble Truths, the Buddha goes on to explain how to reduce (or eliminate, depending on your views) suffering.

So now we find that there is some mandatory suffering in life. Even for children. It’s sitting here in our laps like a shotput ball. What are we supposed to make of it?

The spiritual teacher Eckhart Tolle says that just as the stress and strain of physical exercise strengthens muscles, some amount of suffering and struggle keeps us, to very boldly paraphrase Tolle, emotionally fit. Without it, we and our world would become smaller and smaller (which will, in turn, produce suffering). Gravity, too, challenges our bodies and keeps our bones and muscles strong. Lack of gravity makes us smaller and frailer. Astronauts know this. But sometimes gravity is our enemy. When I experienced the agony of a slipped disc I wished I was on the moon just for a day. But “coming back to earth”, literally and metaphorically, would have made my pain worse.

What does all this mean for children? We talk about “spoiled” children, a highly subjective and violent term. Yet a child who is eventually taught at the right age, gently and in a safe environment, that everything cannot go their way, is surely being seasoned, like wood, to be more resilient in adulthood. Not that one would know it from a child’s reaction to, say, not getting Tirunelveli halwa every single time they want it.

 

But suffering can make our inner and outer worlds smaller too. It depends on the magnitude of the suffering, and it depends on how we handle it. Sometimes nothing seems more important than learning how to suffer in a helpful way, as the late Vietnamese Buddhist monk Thich Nhat Hanh has emphasised. The Thai Buddhist monk and teacher Ajahn Chah once said:

There are two kinds of suffering. There is the suffering you run away from, which follows you everywhere. And there is the suffering you face directly, and in doing so become free.

This is a lifelong learning process for us adults. Almost no child is taught how to suffer the right way.

Too much exercise would be bad for our bones and muscles, as Eckhart Tolle acknowledges. Too much suffering can handicap us, and if it happened in childhood, it has the potential to handicap us for life. It could break us, kill us. So what is the “right” amount of suffering? In the standard narration of the children’s story Goldilocks and the Three Bears, the girl Goldilocks appears to us as a finicky, fussy character. Most things are either too hot or too cold, too this or too that for her. Very few things are just right. This is where the term “Goldilocks zone” in astronomy comes from: the set of conditions that a planet needs to fulfil in order to sustain life as we know it.

Buddhist cosmology seems to have its own version of a Goldilocks zone. Hell realms and heavenly realms are both considered too unpleasant and too pleasant respectively for a being to attain enlightenment. But the human realm is considered ideal, with just the right amount of suffering to potentially push us to start asking questions, to develop “[in]satiable curiosity” like Kipling’s fictional baby elephant. On the question of the rarity of being born in the human realm, with the potential to attain enlightenment, the following analogy has been used:

A blind turtle lives on the ocean bed and surfaces just once every hundred years. A golden yoke floats on the vast ocean, blown here and there by the wind. What are the chances of the turtle surfacing at just the right time and in just the right place to be able to put its head through the yoke?

Here we have an even narrower Goldilocks zone. For me it answers the question: how hard is it to find the “right” amount of childhood suffering among the billions of children on this planet?

Now, the above-mentioned Buddhist cosmology seems to suggest that the suffering here on earth is uniform among humans. This seems utterly crazy because of the insane inequality and wide spectrum of suffering, in childhood and adulthood, right here on earth. Take Prince Siddhartha’s childhood, for example. As a child he might have had a cushy life to some extent (one wonders if he hated his presumed military training as a child), especially because attempts might have been made to protect him from the realities of sickness, old age, and death. In one scene of Zee TV’s eponymous historical fiction series on the Buddha’s life (a show that doesn’t shy away from the questions of caste in the Buddha’s life), the prince’s father King Shuddhodhana orders all the residents of Kapilavastu to dye their grey hair black to hide the fact of ageing from the young prince. The Buddha has also been called “Shakyamuni”, the “Shakya sage”, referring to his privileged caste. He had to leave it all to get to the bottom of the question of suffering, and along the way he learned that too much suffering (in the form of starvation meditation, in his case) is counterproductive.

To continue my pure speculation: when you start off like Siddhartha, with social privilege and (I imagine) a relatively uneventful childhood, the trauma of losing your mother as an infant may not have broken your functioning as a child, and yet it might have primed you for a contemplative, thoughtful mindset. And with no external personal hardships except for social pressures, you witness bigger, larger-scale sufferings like war, sickness, ageing, and death, and it makes you thoughtful and sad and you start asking philosophical questions, perhaps on the nature of suffering.

 

To my mind, this wildly speculative account of the Buddha’s childhood that I have just hypothesised is the best way to arrive at the struggle that Eckhart Tolle recommends for emotional and spiritual growth. To continue my hypothesis: the Buddha is a great example of how too little external hardship and struggle, combined with internal trauma, will eventually naturally ripen into something resembling the “right amount of suffering”. To arrive at this place, coming from a privileged life, means that you can experiment with and explore external hardship at your own pace and arrive at a lifestyle and regular practice that works for you. This kind of situation seems as improbable as the aforementioned turtle putting its head through the golden yoke.

But if you start off in life with too much trauma to bear, and your functioning is affected, your path might be more labyrinthine than the Buddha’s. Meditation doesn’t often work so well for people with serious PTSD, for instance. Other, more creative and gentle ways are called for. Many of us didn’t have the right amount of suffering as children. We had too much suffering, too early. Some of us were socially disadvantaged. Some of us were disabled or ill, physically or psychosocially. Some of us suffered poverty. Now it’s going to be harder to arrive at a philosophy and practice that relieves our suffering. It’s going to take longer, too. Yes, even if we sit under a fast-track bodhi tree for thirteen years. This is why the description of someone as “together/ settled/ sorted” in life is not a function of merit, but of privilege.

What kind of privilege(s) am I talking about here? Why do different people react differently to trauma and ACEs (Adverse Childhood Experiences)? Our society has definitely seen the phenomenon of post-traumatic growth, which can be dangerously romanticised and prescribed. Soni Sori, Maya Angelou, Viktor Frankl – the list could go on and on. Post-traumatic growth shows us that childhood trauma factors aren’t purely deterministic. But post-traumatic growth is one of those things that either happens or doesn’t. Nobody gets a say in it except for the survivor. So forget post-traumatic growth for now. I’m talking about post-traumatic “functionality” – that word that psychiatrists love. Why is a person able to function post trauma – or why not? Does this mean some people are more meritorious than others?

“Stronger”?

In my opinion, a partial answer is twofold: it depends on the nature and on the incidence(s) of the trauma. Firstly, there are so many types of childhood trauma, to begin with (what I mean by the “nature” of a child’s trauma). The ACEs only list some of them. We’ve got social oppression (collective trauma as experienced by a child), poverty, chaos, abuse, childhood disability (including neurodiversity) and illness, physical and emotional neglect, secondary trauma (witnessing other’s trauma and abuse), a family member’s illness or death, the divorce of one’s parents, among many others. Secondly, there’s the incidence of the trauma(s). I feel that this part is about how many different traumas you experienced, how many areas of your life the trauma (or traumas) affected; how many times you experienced it; how early in your childhood; and for how long (complex trauma).

These aforementioned factors are partially what, to me, make up psychosocial privilege (or lack thereof), which is not necessarily the same as “functionality” but does affect it sometimes. Examples of areas that childhood trauma could affect in adulthood: brain wiring; relationship with one’s body; relationship with one’s self; relationships with other people; education; career; finances; risk of substance abuse; physical and mental health, risk of self-harm. There are those who, as a result of childhood trauma, usually think that everything is almost always their own fault or responsibility. Guilt and shame dominate their psyches. There are those who think the opposite: everything is everyone else’s fault. Some of us are a combination of the two. In all these senses, the less psychosocial privilege you had as a child, the harder it’s going to be to function as an adult.

Here’s my conclusion: if almost nobody was in the Goldilocks zone for trauma as a child, and if so many of us go through extraordinary amounts of suffering as adults, can we please normalise extraordinary amounts of suffering? Can we say, yes, a huge amount of darkness exists in life? Can we try not to shun those who show us, through their hardship, our own trauma that we have shunned? Can we quote the writer Ursula Le Guin, who wrote that “Light is the left hand of darkness/And darkness the right hand of light”? Can we try not to shy away from, romanticise, trivialise, stigmatise, minimise, invisibilise, gaslight, repress the struggle and suffering of billions – whether these struggles manifest as mental illness or not? Neha Margosa recently shared an excerpt with me from an essay by Rebecca Solnit on the leprosy doctor Paul Brand about the nature of pain:

Brand concluded that “shared pain is central to what it means to be a human being,” but we are a society that values the anaesthetic over pain. We hide our prisons, our sick, our mad, and our poor; we expend colossal resources to live in padded, temperature-controlled environments that make few demands on our bodies or our minds. We come up with elaborate means of not knowing about the suffering of others and of blaming them when we do.

 

This is why, for me, World Mental Health Day is about more than mental illness. It’s about all of us, together, as a society, acknowledging widespread suffering, first and foremost.

Sneha R is a Bengaluru-based writer. She has been trying to make sense of her bipolar diagnosis since 2006. She loves trees and reads too many self-help books.

Views expressed are the author’s own.