In a landmark ruling, the Supreme Court of India has declared the Electoral Bonds Scheme unconstitutional. The court concluded that the scheme lacks transparency and undermines democratic principles. The verdict emphasizes the need for transparent political funding mechanisms to uphold the integrity of the electoral process.
In the decision, SC directs SBI to stop selling of electoral bonds forthwith and also directs SBI to submit details of electoral bonds bought by individuals/companies within three weeks.
SC also directs ECI to make public the said details submitted by SBI and Political Parties on its website.
SC also orders political parties to refund the electoral bonds to the respective individuals/companies.
Highlights of the ruling of Supreme Court on Electoral Bonds:
- Electoral bonds scheme has to be struck down as unconstitutional.
- Amendment to the Companies Act (allowing blanket corporate political funding) is unconstitutional.
- It violates the right to information of citizens, about possible quid pro quo
- The issuing bank shall forthwith stop the issue of electoral bonds. The State Bank of India shall furnish the details of donations through electoral bonds and the details of the political parties which received the contributions.
- SBI shall furnish the details of electoral bonds encashed by the political parties. SBI shall submit the details to the ECI. ECI shall publish these details on the website by March 31, 2024.
What are Electoral Bonds?
Electoral bonds in India are a financial instrument introduced by the government to enable anonymous donations to political parties. These bonds can be purchased from authorized banks and then given to a political party of choice, allowing for transparency in political funding while maintaining the anonymity of the donor.
The Electoral Bond Scheme was introduced by the Government of India under the leadership of Prime Minister Narendra Modi in 2018.
