New Delhi: Supreme Court’s five-judge Constitution Bench led by CJI DY Chandrachud has delivered a landmark judgement with respect to the Electoral Bonds Scheme which was brought in 2018. The Apex Court bench delivered two separate but at the same time, unanimous verdicts on the pleas which challenged this scheme. The court has called the scheme ‘unconstitutional‘ because it ‘violates the right to information of citizens, about possible quid pro quo.” What was the Electoral Bonds Scheme and why has Supreme Court struck down the scheme, know in just 10 points..
Supreme Court Strikes Down Electoral Bonds Scheme
As mentioned earlier, the Supreme Court Constitution Bench led by CJI DY Chandrachud has struck down the Electoral Bonds Scheme and called it ‘unconstitutional’. The scheme was introduced in 2018 and it replaced the cash donations which were given to political parties, to bring transparency in the political funding. Read in ten points, why this scheme was struck down.
Two separate and unanimous verdicts have been delivered by the CJI DY Chandrachud-led five-judge Constitution Bench. This verdict is on the pleas which challenged the scheme and is a major blow to the Government of India.
The Electoral Bonds Scheme has been called a violation of the Freedom of Speech and Expression under Article 19(1)(a) of the Constitution of India by CJI DY Chandrachud.
The court has further said that RTI Infringement is not a justification to curbing of black money. The court said, “Electoral bonds scheme is not the only scheme to curb black money. There are other alternatives.”
The Supreme Court has also ordered the State Bank of India (SBI) to disclose the names of the contributors to the Election Commission. To quote the court, “The issuing bank shall forthwith stop the issue of electoral bonds. The State Bank of India shall furnish the details of donations through electoral bonds and the details of the political parties which received the contributions.”
Issuance of the electoral bonds mus be stopped by the issuing bank and that the State Bank of India (SBI) will submit the details of all the electoral bonds to the Election Commission of India.
According to the Supreme Court, the information related to the corporate contributors through electoral bonds are donations which are entirely for quid pro quo purposes and so much by disclosed.
The amendments made in the Companies Act that permitted the companies’ unlimited political contributions are unconstitutional and arbitrary. The court said,”A company has more graver influence on the political process than contributions by individuals. Contributions by companies are purely business transactions. Amendment to Section 182 Companies Act is manifestly arbitrary for treating companies and individuals alike.”
The amendments that have been made to the Representation of Peoples Act and the Income Tax Laws among other laws, for this scheme, have also been held as invalid.
The CJI-led Constitution Bench has said that the fundamental right to privacy includes political privacy and affiliation for all citizens and this scheme is a breach of that.
In the Electoral Bonds Scheme, the cash donation limit was reduced to Rs 2000 from Rs 20,000 and private entities could buy and transfer the bonds to political parties; the mandatory disclosure remained at Rs 20,000.
By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts Cookies Policy.
