Topic: Supreme Court Judgment on Electoral Bonds Scheme
Overview of the Verdict
- Bench: Five-judge Constitution Bench headed by Chief Justice of India (CJI) D.Y. Chandrachud.
- Status: The court unanimously struck down the Electoral Bonds Scheme as unconstitutional.
- Key Violations: The court ruled that the scheme violates the Right to Information under Article 19(1)(a) of the Constitution.
Key Grounds for Striking Down the Scheme
- Infringement of Right to Information: The court held that voters have a right to know the funding sources of political parties to identify potential quid pro quo arrangements.
- Failure of the "Black Money" Argument: The government’s justification that the scheme curbs black money was rejected; the court ruled that there are less restrictive ways to achieve this goal without compromising transparency.
- Corporate Influence: The court struck down amendments to the Companies Act that allowed unlimited corporate funding, stating that corporate donations are purely business transactions intended to influence policy, unlike individual donations which are expressions of political support.
Directives issued by the Supreme Court
- Cessation of Sales: The State Bank of India (SBI) must immediately stop issuing electoral bonds.
- Disclosure of Data:
- SBI must submit details of all electoral bonds purchased since April 12, 2019, to the Election Commission of India (ECI).
- Details must include the date of purchase, the name of the purchaser, and the denomination of the bond.
- Political Party Details: SBI must disclose details of bonds redeemed by political parties, including the date of encashment and denominations.
- Public Access: The Election Commission is directed to publish all this information on its official website for public access.
Comparison of Funding Methods (Pre vs. Post Scheme)
| Feature | Electoral Bonds (Struck Down) | Previous System/Current Status |
|---|---|---|
| Anonymity | High (Donor name not on bond) | Low (Direct donations/Cheques) |
| Transparency | Only bank had records | Publicly disclosable above ₹20,000 |
| Corporate Limit | Unlimited | Capped at 7.5% of net profit (restored) |
| Banking Channel | Mandatory (SBI) | Multiple (Cash, Cheque, Digital) |
Impact on Political Finance
- Level Playing Field: The judgment aims to prevent the ruling party from having an unfair advantage through non-transparent corporate backing.
- Return to Transparency: Political parties must now revert to methods of funding that allow for public scrutiny of large contributors.
- Role of ECI: Enhanced responsibility for the Election Commission to ensure data regarding political funding is available to the electorate.