Supreme Court today ruled out verdict calling Centre's proposed 'Electoral Bond Scheme' as 'unconstitutional'. The apex court ruled out that the scheme violates the 'Constitutional right to freedom of speech and expression and the right to information'.
SC's ruling brought criticism to the Central government from the opposition as they welcomed the verdict.
What are Electoral Bonds?
Electoral bonds serve as financial tools akin to promissory notes or bearer bonds, available for purchase by individuals or corporations within India. These bonds are exclusively issued to contribute funds to political parties.
Let's understand what is Electoral Bond Scheme:
The scheme was introduced in the Union Budget of 2017 to bring more translucency regarding political funding.
It tackled issues of donor anonymity and disclosure by reducing the cash donation limit to ₹2,000 while retaining the reporting threshold at ₹20,000. Introduced on January 2, 2018, the scheme permits private entities to buy bonds and contribute them anonymously to political parties.
Which parties are eligible to receive funds under the scheme?
The political parties that are registered under Section 29A of the Representation of the People Act, 1951, and have secured at least one percent of votes in the most recent general or state legislative assembly elections are only qualified to receive and redeem these bonds.
These transactions are conducted through registered bank accounts under the supervision of the Election Commission.
The scheme enables anonymous donations, with the State Bank of India being the sole authorized seller of bonds, available in denominations ranging from ₹1,000 to ₹1 crore.
The introduction of the scheme was accompanied by amendments that eliminated the cap on corporate donations and exempted the disclosure of donor identities.
These changes were intended to prevent the misuse of funds and enhance accountability in political financing. However, despite its objectives, the scheme has encountered substantial criticism for its potential to diminish transparency and accountability in political donations.
Supreme Court's take on the scheme:
Following thorough hearings presenting arguments both in favor of and against the scheme, the Supreme Court, headed by Chief Justice DY Chandrachud along with Justices Sanjiv Khanna, BR Gavai, JB Pardiwala, and Manoj Misra, opted to withhold its verdict.
Supporters emphasized the scheme's utilization of banking channels for traceable contributions, while opponents emphasized concerns regarding its potential impact on democratic integrity owing to its lack of transparency.
"The electoral bonds scheme and the impugned provisions to the extent that they infringe upon the right to information of the voter by anonymising contribution through electoral bonds are violative of Article 19 (1)(a)," the CJI said while pronouncing the verdict.
Follow us
