Electoral Bond Case in Supreme Court: A Summary
The Issue: The Supreme Court of India recently decided the case regarding the Electoral Bond Scheme (EBS) introduced by the government in 2018. The scheme allowed anonymous donations to political parties through the purchase of electoral bonds.
Petitioners’ Arguments: Several petitioners, including the Association for Democratic Reforms (ADR), challenged the EBS on several grounds, including:
- Violation of right to information (Article 19(1)(a)): The anonymity provided by the scheme hindered transparency and voters’ right to informed decision-making.
- Increased corporate funding and black money circulation: They argued the scheme could be misused for opaque corporate funding and black money laundering.
- Undue influence on political parties: Large anonymous donations could lead to undue influence on parties by big donors.
Government’s Arguments: The government defended the EBS, arguing it:
- Promoted transparency: By replacing cash donations with traceable bonds.
- Protected donor privacy: Allowed individuals to donate anonymously without fear of reprisals.
- Reduced black money: Eliminated cash donations, a major source of black money in politics.
Court’s Verdict:
On February 15, 2024, the Supreme Court unanimously struck down the EBS. The five-judge bench agreed with the petitioners, holding that the scheme violated the voters’ right to information and could potentially lead to undue influence and corruption.
Key Points:
- The court’s decision emphasizes the importance of transparency in political funding.
- Anonymity in donations raises concerns about the influence of money in politics.
- The future of political funding in India remains uncertain with the EBS struck down.
Conclusion:
- The court directed the immediate stop of electoral bond sales and ordered details of past purchases be submitted to the Election Commission of India.
- The decision has sparked debate and may lead to new regulations for political funding in India.
