Supreme Court Verdict On Electoral Bonds Scheme: Here's Everything You Need To Know

In a significant ruling on Thursday (15 February), the Supreme Court declared the electoral bonds scheme as "unconstitutional."

The decision, reached unanimously with Chief Justice DY Chandrachud delivering the lead judgment, saw Justice Sanjiv Khanna offering a concurring opinion with slightly different reasoning.

Background

The electoral bonds scheme, introduced by the government on 2 January 2018, allowed for anonymous donations to political parties by companies & individuals in India.

However, petitioners, including the Association for Democratic Reforms (ADR), Communist Party of India (Marxist), and Dr. Jaya Thakur, challenged the amendments introduced by the Finance Act 2017 facilitating this scheme.

The petitioners argued that the anonymity provided by electoral bonds compromised transparency in political funding & infringed upon voters' right to information.

Additionally, they contended that the scheme enabled contributions through shell companies.

Also Read: 'Unconstitutional': Supreme Court Strikes Down Electoral Bonds Scheme For Political Donations

Government's Defence

The Union government defended the scheme by pointing out that anonymity in political donations is required to ensure that there is no apprehension of retribution from other political parties.

It was also argued that the scheme ensures that ‘white’ money is used for political funding through proper banking channels.

Additionally, the government cited the need for donor anonymity to shield contributors from potential retribution by political entities.

What The Judgment Said

While, Chief Justice Chandrachud highlighted "fundamental right to privacy includes a citizen's right to political privacy and political affiliation. Info about a citizens political affiliation can lead to subjecting a citizen to curbs or subjecting them to trolls.... when the law permits political contributions showing political support it is duty of constitution to protect them."

The court emphasized that there were alternative measures to curb black money, rendering the infringement on the right to information unjustified.

The Court also held that the scheme will help the party in power to gain advantage.

"Economic inequality leads to differing level of political engagements. Access to info leads to influencing the policy making and also leading to quid pro quo arrangements may also help a party by the party in power," the judgment said.

The apex court also has directed the State Bank of India to disclose details of electoral bonds received by political parties to the Election Commission of India and shall be published on ECI website by 13 March.

The Apex court directed that electoral bonds which are within the validity period of 15 days but which have not been encashed by the political parties yet shall be returned by the political party to the purchaser.

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