Supreme Court Declares Electoral Bond Scheme Unconstitutional in Unanimous Verdict
On February 15, a five-judge Constitution bench of the Supreme Court delivered its judgment on a series of petitions challenging the legality of the Electoral Bond scheme, which enables anonymous funding to political parties.
The apex court unanimously struck down the Electoral Bond scheme, deeming it “unconstitutional.”
During the announcement of the verdict, Chief Justice of India DY Chandrachud stated that the court had arrived at a unanimous decision, with differing reasoning presented by himself and Justice Sanjiv Khanna.
Key points from the Supreme Court’s ruling include:
- Political parties are integral components of the electoral process, and transparency regarding their funding is crucial for informed electoral choices.
- The anonymous nature of the Electoral Bond scheme violates the Right to Information under Article 19(1)(a).
- Curtailing black money does not justify infringing upon the Right to Information.
- Disclosure of corporate contributors through Electoral Bonds is necessary, as corporate donations often involve quid pro quo arrangements.
- Amendments to the Companies Act allowing unlimited political contributions by corporations are deemed arbitrary and unconstitutional.
- The Electoral Bond scheme is ordered to be invalidated as unconstitutional.
- Banks are directed to cease issuing Electoral Bonds immediately.
- The State Bank of India (SBI) is mandated to provide details of Electoral Bonds encashed by political parties to the Election Commission of India (ECI), with the ECI instructed to publish this information on its website.
