Supreme Court annuls electoral bonds scheme ahead of elections

PTC News Desk: In a landmark ruling, the Supreme Court today invalidated the electoral bonds scheme for political funding, citing its infringement upon citizens' right to information. Chief Justice of India DY Chandrachud declared the electoral bonds scheme unconstitutional and arbitrary, expressing concerns over its potential to foster quid pro quo arrangements between political parties and donors.

The Constitution bench comprising five judges unanimously held that the scheme's objectives of combating black money and preserving donor confidentiality fail to justify its existence. The court emphasized that electoral bonds are not the sole means to address the issue of illicit funds in politics.

Chief Justice Chandrachud directed the State Bank of India to cease the issuance of electoral bonds immediately and mandated the disclosure of all donations made through this channel to the Election Commission of India. The Election Commission was instructed to publish this information on its website by March 13.

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Introduced in 2018 with the aim of curbing the influx of black money into the political sphere, the electoral bonds scheme faced mounting legal challenges from various parties and organisations, including the CPM, Congress leader Jaya Thakur, and the non-profit Association for Democratic Reforms. Critics argued that the confidentiality clause within the scheme encroached upon citizens' right to information.

Senior Advocate Prashant Bhushan, representing the Association for Democratic Reforms, contended that electoral bonds fostered corruption due to their opacity and anonymity. He highlighted the imbalance between ruling parties, opposition parties, and independent candidates in accessing funds through this mechanism.

Even the Election Commission raised objections, labeling the scheme as a "regressive step" in terms of transparency in political funding. The government staunchly defended the scheme in the Supreme Court. Solicitor General of India Tushar Mehta argued that the scheme aimed to ensure clean funding for political parties and cautioned against revealing donor identities, citing potential repercussions.

Attorney General of India R Venkataramani further supported this stance, asserting that the right to information should be subject to reasonable restrictions and should serve specific purposes. As the electoral bonds scheme stands nullified by the Supreme Court, it marks a significant development in India's electoral landscape, with potential ramifications for future political funding mechanisms.

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(Inputs from agencies)