- विज्ञापन -
New Delhi: The Constitution bench has struck down the issuance of electoral bonds holding it as unconstitutional, in its verdict Thursday on a batch of petitions challenging the validity of the electoral bond scheme, which allows for anonymous funding to political parties.
stop issuing electoral bonds and share details
The court also directed State Bank of India to stop issuing electoral bonds and to share all details of the purchaser and encasher to the Election Commission of India, from April 12, 2019 onwards. The EC has been directed to publish the details of the same in its website.
The Five-Judge Constitution bench led by Chief Justice D Y Chandrachud reserved its orders in the matter on November 2 last year. The Narendra Modi-led government notified the scheme on January 2, 2018, pitching it as an alternative to cash donations made to political parties. It was billed as an effort to bring in transparency in political funding.
scheme provided to receive donations
The scheme provided for the political parties registered under Section 29A of the Representation of the People Act, 1951 to receive donations. To become eligible for donation, the said party should have polled at least 1 per cent of the votes in the last elections to the Lok Sabha or a State Legislative Assembly.
As per the provision, the bonds shall be encashed by an eligible political party only through an account with an authorised bank.
Electoral bonds are instruments in the nature of a promissory note or bearer bond which can be purchased by any individual, company, firm or association of persons provided the person or body is a citizen of India or incorporated or established in India. The bonds are issued specifically for the purpose of contribution of funds to political parties.
Centre termed it as transparent scheme
The methodology of the electoral bonds scheme is a “completely transparent” mode of political funding and it is impossible to get black money or unaccounted money pumped through this scheme, according to an affidavit the Centre filed before the Apex Court. Legal challenges were mounted by different petitioners before the top court, against the amendments made to different statutes of this scheme through Finance Act 2017 and Finance Act 2016. The petitioners say that the scheme had opened doors to unlimited, unchecked funding of political parties.
The petitioners wanted stay
The petitioners wanted the top court to stay the issue of electoral bonds. Rejecting the request in April 2019, the Constitution bench said it will not stay the scheme, promising for an in-depth hearing on the pleas. It cited the Centre and the Election Commission raising “weighty issues” and that it would have a “tremendous bearing on the sanctity of the electoral process in the country”.
The Constitution bench, also comprising Justices Sanjiv Khanna, B R Gavai, J B Pardiwala and Manoj Misra, had on October 31 last year commenced hearing arguments on the four petitions, including those filed by Congress leader Jaya Thakur, the Communist Party of India (Marxist), NGOs Association for Democratic Reforms (ADR) and Common Cause.
According to the civil society, the Finance Bill, 2017, paved the way for the introduction of the Electoral Bond scheme, was passed as a money bill even though it wasn’t.
