New Delhi: In a landmark verdict, the Supreme Court on Thursday struck down the electoral bonds scheme for political funding, terming it “unconstitutional” and held that it violates the citizens’ Right to Information. The top court said, “The electoral bonds violate the right to information of citizens right to freedom of speech and expression as guaranteed by the of the Constitution of India.” The apex court said that it has delivered a unanimous verdict on a batch of pleas challenging the legal validity of the Central government’s Electoral Bond scheme which allows for anonymous funding to political parties.
Supreme Court said political parties are relevant units in the electoral process and information about funding of political parties is essential for electoral choices. It held that anonymous Electoral Bonds scheme is violative of Right to Information under Article 19(1)(a).
A 5-judge bench comprising Chief Justice of India DY Chandrachud, Justices Sanjiv Khanna, BR Gavai, JB Pardiwala and Manoj Misra heard the matter.
The Supreme Court also directed the State Bank of India (SBI) to cease issuing electoral bonds with immediate effect. The top court has ordered SBI to provide the Election Commission of India (ECI) with detailed records of all electoral bond contributions received by political parties from the scheme’s interim order in 2019 up to the present date.
The ECI is expected to receive comprehensive data from SBI within three weeks. Once the information is collected, the ECI has been instructed by the Supreme Court to publish these details on its official website, ensuring transparency and public access to the information.
“SBI shall furnish the details of donations through electoral bonds and the details of the political parties which received the contributions. SBI shall furnish the details of electoral bonds encashed by the political parties. SBI shall submit the details to the ECI in three weeks and ECI shall publish these details on the website,” the Chief Justice said.
#WATCH | Advocate Prashant Bhushan says “The Supreme Court has struck down the Electoral Bond scheme and all the provisions that were made to bring it into effect have been struck down. They have held that this violates the fundamental right to information of citizens to know… https://t.co/p0jF21bOAH pic.twitter.com/wizF38Lvfj
— ANI (@ANI) February 15, 2024
The electoral bonds scheme, introduced through the Finance Act, 2017, has been a topic of debate and discussion in India. This scheme allows donors to anonymously send funds to a political party after buying bearer bonds from the State Bank of India (SBI). An electoral bond is an instrument in the nature of a promissory note or bearer bond which can be purchased by any individual, company, firm or association of persons provided the person or body is a citizen of India or incorporated or established in India.
The main objective behind the introduction of electoral bonds was to bring transparency in political funding. The bonds, which are available in multiple denominations, are issued specifically for the purpose of contributing funds to political parties. This system was introduced by amending three other statutes – the RBI Act, the Income Tax Act, and the Representation of People Act.
The electoral bond scheme has its advantages and disadvantages. On one hand, it allows donors to contribute to political parties without revealing their identity, which can protect them from any potential backlash or harassment. It also provides a legal and transparent way for political parties to receive funding. However, critics argue that the anonymity of the donors raises concerns about the transparency and accountability of political funding.
Despite the criticism, the electoral bond scheme has been used by various political parties to raise funds for electoral campaigns. The bonds have become a popular choice among donors who wish to support a particular political party without publicly disclosing their identity.
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