SC To Examine If Electoral Bonds Case Needs To Be Referred To Constitution Bench On April 11

The bench headed by CJI DY Chandrachud passed the direction after the petitioner's counsel Shadan Farasat said it impacted the "democratic polity and funding of political parties."

New Delhi: The Supreme Court on Tuesday said it will hear the petitions challenging the electoral bonds scheme on April 11 and decide whether the matter should be heard by a five-judge Constitution Bench.

The bench headed by Chief Justice of India (CJI) DY Chandrachud passed the direction after the petitioner's counsel Shadan Farasat said it impacted the "democratic polity and funding of political parties" and that the matter required an "authoritative pronouncement by the court," the news agency IANS reported.

Senior advocate Dushyant Dave, also representing one of the petitioners, said, "we will only benefit, if it is a constitution bench. It will not harm anybody. Yes, this issue goes to the core of our democratic existence. Rs 12,000 till now and the largest party gets more than two-third".

After hearing submissions, the top court said, "Then we will hear it on April 11, 2023, to see if it should be referred to the Constitution bench," according to IANS.

The government notified the Electoral Bond Scheme in 2018. It is an instrument 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 contributing funds to political parties.

In October last year, the Centre told the Supreme Court that the electoral bonds scheme is an absolutely transparent mode of political funding.

The top court was hearing a batch of petitions led by the NGO Association for Democratic Reforms (ADR), that have challenged the validity of the Centre's electoral bonds scheme as a source of political funding.

The apex court, in March 2021, declined to entertain two stay applications moved by ADR to stop the sale of the electoral bonds ahead of elections in West Bengal, Tamil Nadu, Assam, Kerala, and Puducherry.

The top court had noted that there was no justification to block the sale of electoral bonds over concerns of anonymity in political party funding or apprehensions of their misuse.

In April 2019, the apex court directed all political parties to submit details of receipts of the electoral bonds to the Election Commission of India (EC) in a sealed cover.

(With inputs from IANS)