SC to pronounce judgement today on validity of Electoral Bonds Scheme

New Delhi: 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.

A bench of Chief Justice of India D Y Chandrachud and Justices Sanjiv Khanna, B R Gavai, J B Pardiwala and Manoj Misra would render the verdict on a batch of petitions filed by NGO Association for Democratic Reforms, CPI(M), MP Congress leader Jaya Thakur and others.

The court had November 2, 2023 reserved its judgment after three full days of hearing.

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.

The petitioners contended the scheme promoted and legalised corruption for allowing any company to anonymously give kickbacks to parties in power.

They said there is considerable evidence to show almost all electoral bonds have gone to the ruling parties, in Centre and states, and 94 per cent electoral bonds purchased are in denomination of Rs one crore and the rest are in Rs 10 Lakh.

Attorney General R Venkataramani and Solicitor General Tushar Mehta for the Centre submitted that the scheme treats all contributors equally and that the confidentiality is important.

He emphasised that moving away from black money to a regulated scheme served the public interest.

They also said the scheme has an advantage of KYC. All the contributions to parties are through electoral bonds in the form of accounted transaction and within the normal banking channels.