Supreme Court strikes down electoral bonds scheme, terms it 'unconstitutional'

The Supreme Court on February 15 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 of India on February 15 during the proceedings on petitions challenging the electoral bonds scheme and its Constitutional viability stated that electoral bonds scheme has to be struck down as unconstitutional. 

A five-judge comprising Chief Justice of India DY Chandrachud, Justices Sanjiv Khanna, BR Gavai, JB Pardiwala and Manoj Misra heard the matter and reserved the verdicgt on November 2 last year. 

CJI DY Chandrachud said that there are two separate judgements - one penned by him and the other by Justice Sanjiv Khanna and both the verdicts are unanimous.

Supreme Court says political parties are relevant units in the electoral process and information about funding of political parties is essential for electoral choices.

The apex court further added that infringement to the Right to Information is not justified for the purpose of curbing black money. Supreme Court says information about corporate contributors through Electoral Bonds must be disclosed as the donations by companies are purely for quid pro quo purposes.

During the hearing, the bench posed numerous significant questions to the Central Government concerning a scheme, highlighting its 'selective anonymity' and questioning its potential to legalise kickbacks for political parties. The bench noted the possibility of the ruling party knowing the identity of donors, a privilege not extended to opposition parties.

Questions were also raised about the removal of a condition that restricts companies from donating more than 7.5 per cent of their net profits to political parties. At the conclusion of the hearing, the bench instructed the Election Commission of India to present the details of contributions received by all political parties through electoral bonds until September 30 in a sealed envelope to the Court. 

Also read: Assam Rifles seize 434 kg of marijuana worth Rs 1.736 crore in Tripura