India's Modi warns of 'black money' in political funding after old system scrapped by court

Indian Prime Minister Narendra Modi looks on during an event to launch the ruling Bharatiya Janata Party's (BJP) election manifesto for the general election, in New Delhi, India, April 14, 2024. REUTERS/Adnan Abidi

NEW DELHI (Reuters) - A Supreme Court decision to scrap a controversial political funding system has pushed contributions to parties towards "black money", or illegal funds, Indian Prime Minister Narendra Modi said in remarks broadcast on Monday.

India's top court in February scrapped as unconstitutional a seven-year-old election funding system through instruments called "electoral bonds" that allowed individuals and companies to make unlimited and anonymous donations to political parties.