Current Affairs Analysis | The Hindu Editorial | April 11, 2024

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Crowded field: On Maharashtra politics 
Maharashtra politics has metamorphosed beyond recognition in the last five years 
April 11, 2024

In the extraordinary political landscape in Maharashtra, there are two factions of the Shiv Sena and Nationalist Congress Party (NCP), each facing each other as part of opposing alliances around the two national parties, the Bharatiya Janata Party (BJP) and the Congress. The Uddhav Thackeray-led Shiv Sena (UBT) is set to contest 21 constituencies, the Congress 17 and the NCP (Sharadchandra Pawar) 10 of the 48 Lok Sabha segments in the State, under the banner of the Maha Vikas Aghadi (MVA). These parties managed to arrive at an amicable settlement as each made significant concessions to ensure unity against the Mahayuti coalition, comprising the BJP, the Eknath Shinde-led Shiv Sena, and Ajit Pawar’s NCP, that has yet to announce its seat-sharing arrangement. The MVA had a tough time reaching this agreement as there were multiple aspirants for each seat. The Shiv Sena (UBT) will be fielding candidates in all five regions of the State — Konkan, western Maharashtra, Marathwada, north Maharashtra, and Vidarbha — while the NCP (SP) will concentrate its resources on seats with a higher win probability, largely in the sugar belt of western Maharashtra. The Congress’s seats are distributed across Vidarbha, western Maharashtra, and Marathwada, leaving the entire Konkan region and most of the Mumbai seats to the other two allies.

In 2019, the united Sena was an ally of the BJP and the united NCP, an ally of the Congress. Mr. Thackeray’s switching sides to the Congress-NCP triggered new political forces, and the opportunistic shifts and splits within the Sena and NCP are turning into more enduring arrangements. Troubles are far from over, however, and in many constituencies, the alliances will have to manage resentment and rebellion. The Pawar family is split between two parties, and Ajit Pawar has fielded his wife, Sunetra, against his cousin Supriya Sule in Baramati, the family stronghold. The Lok Sabha elections will be the first test of the popularity of various leaders and formations that have dramatically metamorphosed beyond recognition in the last five years. The Congress, in its enthusiasm to preserve its partnership with the Sena (UBT) and senior Pawar’s NCP, ended up losing some of its leaders who could not be given a ticket to contest. The MVA is also trying to keep Prakash Ambedkar’s Vanchit Bahujan Aghadi (VBA) within its fold, though it has not been given any seats. The State is critical to the BJP’s national calculations also — it won 23 seats in 2019. Its alliance with factions of the Sena and the NCP is going to be tested and its campaign will mostly pivot around Prime Minister Narendra Modi.

FAQs

The article discusses the complex political landscape in Maharashtra, highlighting the shifting alliances and power dynamics among key political parties. It emphasizes the emergence of two factions within the Shiv Sena and Nationalist Congress Party (NCP), each aligning with different national parties, the Bharatiya Janata Party (BJP) and the Congress, respectively. Despite internal differences, these parties have come together under the banner of the Maha Vikas Aghadi (MVA) to contest the upcoming Lok Sabha elections.

1) What are the major challenges faced by the Maha Vikas Aghadi (MVA) in reaching an agreement for seat-sharing?

Ans: The MVA had to navigate through multiple aspirants for each seat, manage resentment and rebellion within alliances, and address conflicting interests among the Shiv Sena, NCP, and Congress.

2) How has Uddhav Thackeray’s decision to align with the Congress-NCP impacted Maharashtra politics?

Ans: Thackeray’s switch triggered significant realignments, leading to the emergence of enduring arrangements within the Shiv Sena and NCP, and reshaping the political landscape beyond recognition over the last five years.

3) What internal conflicts exist within the Pawar family and how are they manifesting in the upcoming elections?

Ans: The Pawar family is divided between two parties, with Ajit Pawar fielding his wife against his cousin in Baramati. This internal rivalry reflects broader tensions within the NCP and may impact the party’s unity and electoral prospects.

4) How is the Congress balancing its partnership with the Shiv Sena and NCP, and what are the consequences?

Ans: The Congress, eager to maintain its alliance, has lost some leaders who were denied tickets to contest. This highlights the challenges of managing competing interests within the coalition and maintaining party cohesion.

5) What role does Maharashtra play in the BJP’s national calculations, and how will its alliance strategy be tested in the upcoming elections?

Ans: Maharashtra is crucial to the BJP’s national electoral strategy, given its significant number of Lok Sabha seats. The BJP’s alliance with factions of the Shiv Sena and NCP will be tested, and its campaign is expected to pivot around Prime Minister Narendra Modi’s leadership.

Pandora’s box: on the electoral bonds scheme, emerging details
More revelations from the electoral bonds necessitate a thorough investigation
April 11, 2024

In the last month or so, ever since the State Bank of India was compelled by the Supreme Court of India to release information on donations via electoral bonds to political parties, emerging details have only confirmed the worst fears of naysayers in regulatory and policy-making institutions about the scheme before it was introduced by the Bharatiya Janata Party (BJP)-led government in 2018. A joint investigation that included The Hindu found that at least 33 companies that had aggregate losses of over ₹1 lakh crore from 2016-17 to 2022-23 had donated close to ₹582 crore, of which 75% went to the ruling BJP. Loss-making companies were donating substantial sums; profit-making firms were making donations exceeding their aggregate profits; some donor firms were not reporting data on net profits or direct taxes; some newly incorporated firms were making donations before the stipulated three-year period (after being formed) — the list of the rule-breaking and suspect sources of funding is significantly large. The nature of these donations raises several questions. Were these loss-making firms fronts to launder money? Were the firms that did not report profit/losses shell companies? Were donor firms that made significant profits — but did not pay net direct taxes in aggregate for a significantly long period — engaged in tax evasion? These supplement other questions raised earlier — was the fact that a number of firms, under investigation by agencies such as the Enforcement Directorate and the Income-Tax Department, were significant donors for the ruling party, an indication that these agencies were being used as a means to ensure quid pro quo?

Reserve Bank of India and Election Commission of India officials were emphatic in their apprehensions that the bonds scheme could be utilised in money laundering and tax evasion. Yet, the Union Finance Ministry went ahead with the scheme. In the five and a half years of its operation, thousands of crores were encashed by political parties via electoral bonds, with the BJP receiving the lion’s share. While the Court must be lauded for ending an opaque scheme with serious issues, the fact that large amounts were donated from dubious sources before every election is an indictment of the nature of campaign financing in place during this period. With the polity in India busy campaigning for the general election, it is up to the electorate to assess the effects of the electoral bonds scheme. But, more importantly, once the election is over and governance takes over, Parliament and the regulatory institutions must conduct a thorough investigation into the nature of donations and whether the donors and recipients broke laws. The judiciary must prod these institutions. A clean-up of campaign and electoral financing is a must for a healthy democracy.

FAQs

The article sheds light on concerning revelations regarding the electoral bonds scheme, raising questions about its integrity and legality. It highlights how the scheme, introduced by the BJP-led government in 2018, has been utilized by political parties, particularly the ruling BJP, to receive significant donations from questionable sources.

1) What are the key findings regarding donations via electoral bonds to political parties, as revealed by the investigation?

Ans: The investigation discovered that numerous loss-making companies donated substantial sums, profit-making firms donated amounts surpassing their profits, and some donor firms did not report data on net profits or direct taxes. Additionally, newly incorporated firms made donations before the stipulated three-year period, suggesting rule-breaking and suspect funding sources.

2) What are the implications of these findings, particularly regarding money laundering, tax evasion, and the integrity of campaign financing?

Ans: The nature of donations raises concerns about potential money laundering, the use of shell companies, and tax evasion. Moreover, the significant donations from dubious sources, particularly before elections, indicate flaws in campaign financing and the influence of money in politics.

3) Why did regulatory bodies such as the Reserve Bank of India and the Election Commission of India express apprehensions about the electoral bonds scheme, and how did the Union Finance Ministry proceed despite these concerns?

Ans: Despite warnings from regulatory bodies about the potential for money laundering and tax evasion, the Union Finance Ministry proceeded with the scheme. Understanding the rationale behind this decision and the implications of disregarding regulatory concerns is crucial in assessing accountability.

4) What role should Parliament and regulatory institutions play in investigating the nature of donations and ensuring compliance with laws?

Ans: The article emphasizes the need for a thorough investigation by Parliament and regulatory institutions into the nature of donations and potential legal violations by donors and recipients. This scrutiny is essential for upholding the rule of law and preserving the integrity of electoral processes.

5) What steps are necessary to address the issues raised by the electoral bonds scheme and ensure transparency and accountability in campaign financing?

Ans: A clean-up of campaign and electoral financing is deemed essential for a healthy democracy. The article calls for proactive measures by Parliament, regulatory bodies, and the judiciary to address the shortcomings of the electoral bonds scheme and enact reforms to enhance transparency and accountability in campaign financing.

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