The Supreme Court's five-judge Constitution bench is set to announce its verdict on February 15 regarding a series of petitions challenging the legality of the Union government's Electoral Bond scheme, which permits anonymous funding to political parties, as reported by news agency ANI.
On November 2 last year, the Supreme Court directed the Election Commission of India (ECI) to furnish updated data on funds received by all political parties through electoral bonds within a fortnight. Chief Justice of India (CJI) DY Chandrachud, alongside Justices Sanjiv Khanna, BR Gavai, JB Pardiwala, and Manoj Misra, issued this directive. The court reserved its verdict after three days of hearings on the matter, ANI's report stated.
"We would like the Election Commission of India (ECI) to get the data up to September 30, 2023. We have heard arguments. Judgment reserved," stated the bench in its order, as per the report
During the hearing, the bench expressed dissatisfaction with the ECI for lacking data on Electoral Bond donations to date. Advocate Amit Sharma, representing the poll panel, informed the court that they were under the impression that the previous order pertained only to bonds issued in relation to the 2019 Lok Sabha elections.
Arguments Against Electoral Bond Scheme
Senior advocate Kapil Sibal, representing one of the petitioners, argued against the Electoral Bond scheme, labeling it as "the most unconstitutional, undemocratic, unfair scheme which destroys the basic structure of the constitution."
The bench suggested exploring alternative systems for political donations to address the flaws in the current electoral bond system. CJI Chandrachud emphasized that while the court does not propose reverting to a cash-only system, serious deficiencies in the existing system need rectification, as per ANI.
What Is Electoral Bond Scheme
An electoral bond is a financial instrument akin to a promissory note or bearer bond, purchasable by individuals, companies, firms, or associations of persons, provided they are Indian citizens or incorporated/established in India. These bonds are specifically for contributing funds to political parties.
The Centre, in an affidavit, defended the Electoral Bonds scheme, describing its methodology as "completely transparent" and asserting its efficacy in preventing the influx of black money or unaccounted funds, the report stated.
Several petitions challenging amendments made to different statutes through the Finance Act 2017 and Finance Act 2016 are pending before the apex court. Critics argue that these amendments, including the introduction of the Electoral Bond scheme, facilitate unchecked funding of political parties.
The NGOs Association of Democratic Reforms and Common Cause contended that the Finance Bill, 2017, which enabled the Electoral Bond scheme, was passed as a money bill despite not meeting the criteria for such classification.