Terming it as “unconstitutional,” a five-judge Constitution bench of Supreme Court, on Thursday, struck down the electoral bonds scheme which provides blanket anonymity to financial contributions to political parties.
The apex court also struck down amendments to the laws which allowed rich corporations to make unlimited political donations “unconstitutional and manifestly arbitrary.”
In an unanimous judgement, the bench headed by Chief Justice D Y Chandrachud, held that the electoral bonds scheme and preceding amendments to the Representation of Peoples Act, Companies Act and the Income Tax Act violate the voters’ right to information about political funding under Article 19(1)(a) of the Constitution.
The bench further directed the SBI to stop issuing the electoral bonds herewith. The bank was asked to submit details of the bonds purchased from April 19, 2019 till date, to the Election Commission of India. On this day in 2019, the court had ordered the Election Commission to submit in a sealed cover the records of bonds purchased till then.
The SBI would make a full disclosure to the Election Commission of the political parties that had received contributions and encased the electoral bonds from April 19, 2019. The bank has been asked to submit this information to the Election Commission by March 6, 2024.
Electoral bonds, with a validity period of 15 days and yet to be encashed, would be returned by political parties or purchasers to the bank which in turn must refund the amount to the purchasers’ accounts.
The Supreme Court bench opined that the absolute non-disclosure of the source of political funding through the electoral bonds promoted “corruption” and hence it was unconstitutional.
