Supreme Court's landmark ruling on electoral bonds | Explained

PTC Web Desk: In a pivotal ruling, Chief Justice of India DY Chandrachud on Thursday issued a directive ordering the State Bank of India (SBI) to cease the issuance of electoral bonds with immediate effect. This decision is a significant move aimed at bringing transparency to the political funding process.

Disclosure Mandate: Unveiling the Veil on Electoral Bond Beneficiaries

As part of the comprehensive judgment, the Supreme Court has mandated that the SBI must disclose intricate details regarding political parties that have received electoral bonds since the inception of the scheme in 2018. This includes crucial information such as the date of purchase, the name of the purchaser, denomination, and specifics of parties receiving contributions through electoral bonds. The deadline for submitting this information to the Election Commission of India (ECI) is set for March 6.

Accountability in Action: Scrutiny of Encashed Bonds

Chief Justice of India DY Chandrachud emphasised the imperative of transparency and accountability by instructing the SBI to furnish information on each encashed bond. This move aims to shed light on the financial interactions between political parties and donors, fostering a system of checks and balances.

Return and Refund: Dealing with Unencashed Electoral Bonds

The court has taken a decisive stance on electoral bonds that remain unencashed within their validity period of 15 days. It mandates that these bonds must be returned and refunded to the purchasers. The process involves the initiating bank refunding the purchasing party after the unencashed bonds are returned, adding a layer of accountability to the financial transactions involved.

Timeline for Transparency: Publication by Election Commission

To ensure transparency reaches the public domain, the Election Commission of India has been directed to publish the disclosed information on its official website by March 13. This step aims to empower citizens to scrutinise and comprehend the financial dealings between political parties and their contributors, promoting an informed electorate.

A Bold Step Towards Political Financial Transparency

Chief Justice Chandrachud's directive represents a bold and decisive step in addressing the opaque nature of political funding. By halting the issuance of electoral bonds, compelling disclosure of details, and ensuring accountability in the handling of unencashed bonds, the judgment aims to instill confidence in the democratic process and empower citizens with the information they need for informed decision-making.

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