Why Supreme Court struck down electoral bonds scheme

NEW DELHI: In a landmark decision, the Supreme Court has declared that the electoral bonds scheme infringes on the right to information and the freedom of speech & expression under the Constitution, emphasizing that the scheme's purpose of curbing black money does not justify its infringement on information rights.

A five-judge Constitution bench headed by Chief Justice D Y Chandrachud also directed that the SBI must disclose details of each electoral bond encashed by political parties. The information should include the date of encashment and the denomination of the bonds and be submitted to the poll panel by March 6. The Election Commission will then have to publish the details on its website by March 13.



The judgment on Thursday pointed out that financial support to political parties could lead to reciprocal agreements, raising questions about the integrity of policy-making influenced by monetary contributions. The apex court emphasized that the electoral bonds scheme is not the sole method available to combat black money, suggesting exploration of alternative measures.

"Allowing corporates to make unlimited contributions to political parties violated a level playing field in polls," the apex court said, expressing concerns over donations being made for quid pro quo purposes.

The judgment pointed out that financial support to political parties could lead to reciprocal agreements, raising questions about the integrity of policy-making influenced by monetary contributions.

Addressing the broader implications of political contributions, the CJI noted that such contributions grant donors access to political power, which can subsequently influence policy decisions.

This nexus between financial contributions and political influence, according to the Supreme Court, undermines the principles of a participatory democracy.

The court further recognized the right to information on social, cultural, political, and economic matters as foundational to a functioning democracy, asserting that knowledge about political funding is crucial for voters to make informed decisions.

It underscored the significant role of political parties in the democratic process and the need for transparency in political financing to prevent economic disparities from skewing political engagement.

According to the provisions of the scheme, electoral bonds may be purchased by any citizen of India or entity incorporated or established in the country. An individual can buy electoral bonds, either singly or jointly with other individuals without disclosing the identity.