BREAKING | Supreme Court Strikes Down Electoral Bond Scheme

The Supreme Court of India, on February 15, held that the Electoral Bonds Scheme was constitutionally invalid as it contravened Article 19(a) of the Constitution of India. 

The Court further directed that the issuing bank (State Bank of India) shall stop issuing electoral bonds henceforth. The State Bank of India has also been directed to publish a list of donations to various political parties from the year 2019. The Chief Justice of India, while reading his opinion, also stated that the scheme violated the right to know of the citizenry as there was a possibility of quid pro quo since the identity of the donor remained concealed. The amendment to the Companies Act which allowed corporate funding to political parties was also held unconstitutional.

Holding that the right to privacy of political was not applicable to electoral bonds, the CJI led bench struck down the scheme.

A five judge constitution bench comprising Chief Justice of India DY Chandrachud, Justice Sanjiv Khanna, Justice BR Gavai, Justice JB Pardiwala and Justice Manoj Misra had heard a batch of pleas wherein the challenge was mounted on the constitutionality of the scheme.

The scheme was introduced in 2017 through a Money Bill. The scheme created opacity in the electoral funding as the identity of the donor remained concealed. This acted as an advantage favouring the ruling establishment and put the rest of the political parties at a detriment.

More to follow...