Congress leader Rahul Gandhi
Credit: PTI Photo
SC to pronounce judgement today on validity of Electoral Bonds Scheme
The Supreme Court is scheduled to pronounce its judgment on Thursday to a plea challenging the validity of the 2018 Electoral Bonds Scheme, meant for political parties to receive donations in the country.
The court had November 2, 2023 reserved its judgment after three full days of hearing.
What is electoral bonds scheme?
The Electoral Bonds Scheme was notified on January 2, 2018. It introduced money instruments through which companies and individuals in India can donate to political parties anonymously by buying bonds from the notified State Bank of India branches.
During hearings, the petitioners had contended the scheme promoted and legalised corruption for allowing any company to anonymously give kickbacks to parties in power.
BJP spent over Rs 1,000 cr on polls in 2022-23, collected electoral bonds worth over Rs 1,200 cr: Audit
BJP spent five times more than its main rival Congress for elections in 2022-23 while it collected seven times more from Electoral Bonds, the ruling party’s latest audit report showed.
The BJP incurred Rs 1,092.15 crore for election related expenses in 2022-23 compared to Congress’ expenditure of Rs 192.55 crore. BJP had spent Rs 645.85 crore in 2021-22.
Which parties are eligible to receive electoral bonds?
Only the political parties registered under Section 29A of the Representation of the People Act, 1951 and which secured not less than 1 per cent of the votes polled in the last elections to the Lok Sabha or a state legislative assembly are eligible to receive electoral bonds.
Electoral Bonds 'legalisation of corruption': Yechury
Communist Party of India (Marxist) general secretary Sitaram Yechury on Tuesday likened the Electoral Bond Scheme to the "legalisation of political corruption" and hoped that the Supreme Court would soon deliver its verdict on pleas to scrap the scheme. He also hoped the Election Commission would be questioned about changing its stand on opposing electoral bonds.
"It's been more than three months since the Supreme Court completed the hearings on pleas, including mine, seeking the scrapping of the electoral bond scheme. The verdict has not yet come," he is heard saying in a video he posted on X.
(PTI)
What are the problems with Electoral Bonds?
There are several problems with Electoral Bonds.
The petitioners have requested the court to focus mainly on two issues concerning the scheme. One is the legalisation of anonymous donations, and the other is the violation of citizens’ right to information about the funding of parties. The two issues concern violation of Articles 19, 14 and 21 of the Constitution. Several questions have been raised about the scheme ever since its inception.
It ensures the flow of money to political parties through the banking channel but without disclosure of the donor’s identity. The legalisation of anonymous donations would amount to facilitation and legitimisation of corruption.
In a democracy, the public have the right to know who funds parties because the funding may be used to influence policies. Indeed, more than 95 per cent of the donations through Electoral Bonds have been in denominations of Rs 1 crore and above, suggesting that these are donations by either corporates or rich individuals. There is also the concern that the Bonds facilitate money-laundering, though the government has claimed that its purpose is the opposite.
Supreme Court to deliver judgment on Electoral Bonds Scheme validity shortly.
The verdict will be delivered by a five-judge bench of CJI DY Chandrachud, Justices Sanjiv Khanna, B R Gavai, J B Pardiwala & Manoj Misra.
Five-judge constitution bench to assemble shortly to deliver verdict, reports Bar and Bench.
CJI DY Chandrachud : We have arrived at a unanimous decision. There are two opinions, one by myself and another by Justice Sanjiv Khanna. Both arrive at same conclusion. There is a slight variance in the reasoning. (LiveLaw)
CJI : Petitions raise following issues (a) Whether amendments are violative of right to information under Article 19(1)(a)
(b) Whether unlimited corproate funding violates principles of free and fair elections
(Reports LiveLaw)
Supreme Court says political parties are relevant units in the electoral process and information about funding of political parties is essential for electoral choices.
CJI D Y Chandrachud says there are two separate judgements - one penned by him and the other by Justice Sanjiv Khanna and both the verdicts are unanimous.
CJI: We are of the opinion that least restrictive means test is not satisfied.. there are other means other than electoral bonds to achieve that purpose. contribution by other means of electronic transfer and electoral trusts is other restrictive means. thus curbing black money is not a ground for electoral bonds.
(Bar and Bench)
Supreme Court holds that anonymous electoral bonds are violative of right to information and Article 19(1)(a).
(LiveLaw)
CJI : Right to privacy of political affiliation does not extend to contributions made to influence public policy and applies only to contributions below the threshold.
(LiveLaw)
Poll bonds scheme "unconstitutional", needs to be struck down, observes Supreme Court.
Supreme Court holds that amendments in the Companies Act permitting unlimited political contributions by companies are arbitrary and unconstitutional.
Poll bonds verdict has far reaching impact on voters' right to information, says petitioner hailing SC judgment
Advocate Prashant Bhushan says "The Supreme Court has struck down the Electoral Bond scheme and all the provisions that were made to bring it into effect have been struck down. They have held that this violates the fundamental right to information of citizens to know about who is contributing money to political parties. They have also struck down the unlimited contribution being made by companies to political parties..."
Saket Gokhale calls SC verdict 'historic'
"Supreme Court’s verdict striking down electoral bonds is possibly the most HISTORIC judgment & intervention in the last 5 years. EC will now have to publish the list of all electoral bond donors & parties they donated to by mid-March. Most important to watch - how many of the donors who gave electoral bonds to the BJP are individuals & companies facing ED & CBI action."
Long-awaited verdict is hugely welcome, will reinforce power of votes over notes: Congress on Supreme Court striking down electoral bond scheme.
(PTI)
Victory of our democracy, says a petitioner in Electoral Bond Scheme case
Former ECI's S Y Quraishi's 'three cheers' for Supreme Court
What Congress spokesperson Surendra Singh Rajput said on the SC verdict on Electoral Bonds Scheme
“Supreme Court has raised questions on its (the scheme) transparency and has turned it down. The BJP government would now need to tell from where and whom they took money,” he said.
Another proof of Narendra Modi's corrupt policies: Rahul Gandhi on poll bonds verdict
"Another proof of Narendra Modi's corrupt policies is in front of you. BJP had made electoral bonds a medium for taking bribe and commission. Today this matter has been approved."
Consequences of that (SC judgement) are mind boggling: Kapil Sibal
"The consequences of that (SC judgement) are mind boggling for the simple reason that all the money that political parties have received and amongst political parties the BJP has received the maximum amount of money...obviously, since the scheme has been struck down...it has huge implications," Kapil Sibal said.
SC decision should be welcomed by all right-minded people who believe in probity in public life: Manish Tiwari
On the Supreme Court's verdict on the Electoral Bond scheme, Congress MP Manish Tiwari says, "SC decision should be welcomed by all right-minded people who believe in probity in public life... Supreme court ordering the SBI, the operator of Electoral Bonds Scheme to provide all the data to the Election Commission and the EC to publish it on its website is a welcome decision..."
Electoral Bonds Scheme struck down: Supreme Court verdict explained
Delivering a historic judgment on a batch of petitions challenging the validity of the Electoral Bonds Scheme, the Supreme Court on Thursday held it "unconstitutional" and violative of the Right to Information and Article 19(1)(a). Two separate but unanimous verdicts were delivered by a five-judge Constitution bench headed by Chief Justice D Y Chandrachud.
On the Supreme Court's verdict on the Electoral Bond scheme, CPI(M) Secretary-General Sitaram Yechury says, "CPM was the only petitioner, the only political party who had the locus-standi to argue against the electoral bonds. As a matter of principle, we are the only party which did not accept electoral bonds. We consider electoral bonds as a legalisation of political corruption... Nevertheless, it is a welcome judgement. There's a possibility of quid-pro-quo, which means deal-breaking. This has exposed this government's claims of fighting corruption..."