Electoral bond scheme for political funding declared “unconstitutional” by the Supreme Court.
In a landmark judgment on February 15, Chief Justice of India DY Chandrachud said the scheme was arbitrary and violated citizens’ right to information.
A five-judge Constitution bench of the Supreme Court struck down the electoral bond scheme, which allowed anonymous donations to political parties.
On January 2, 2018, the electoral bond scheme launched by the government was seen as a solution to replace cash donations and increase transparency in political funding.
The Supreme Court said that this scheme violates the right to information of the citizens, thereby affecting the freedom of speech and expression under Article 19(1)(a) of the Constitution.
Chief Justice Chandrachud, while striking down the scheme introduced through the Finance Act, 2017, said information about the funding of political parties is essential for the effective exercise of voting choice.
The electoral bonds Issuer bank, the State Bank of India (SBI), has been ordered to submit details of the political parties that have received electoral bonds since 2019 to the Election Commission of India (ECI) by March 6, 2024.
ECI has also been asked to publish such details on its official website.
The Supreme Court also struck down the amendments made to the Income Tax Act and the Representation of the People Act, which had made donations anonymous.
The judgment also said that the amendment to the Companies Act allowing blanket corporate political funding was “unconstitutional”.
Before the amendment to the Companies Act in 2017, loss-making companies in India were not allowed to make contributions.
Furthermore, the Supreme Court said that the electoral scheme would help the political party that is in power.
