- The Basics: Following the Supreme Court’s Feb 2024 verdict in Association for Democratic Reforms (ADR) v. Union of India, the anonymous Electoral Bond Scheme was scrapped as unconstitutional. Corporations have now pivoted back to Electoral Trusts.
- Background: * Electoral Trust Scheme (2013): Introduced by the UPA government, these are Section 25 companies (non-profit) that receive contributions from various corporate houses and distribute at least 95% of the total funds to registered political parties.
- The Shift: Unlike Bonds (which were anonymous), Trusts must submit annual contribution reports to the ECI, disclosing both the donor and the recipient.
- Current Context (2025): * Funding has seen a "sharp concentration," with the ruling party (BJP) receiving over 82% (₹3,112 crore) of the total ₹3,811 crore routed through nine major trusts like Prudent and Progressive.
- UPSC Insight: Focus on the tension between "Transparency" (disclosure of names) vs. "Fair Playing Field" (concentration of wealth in one party).
IAS-2026 - OPTIONAL / GEOGRAPHY / PUBLIC ADMINISTRATION / SOCIOLOGY / ANTHROPOLOGY / ORIENTATION ON 03 & 04-10-2025 
