A Constitution Bench of the Supreme Court will pronounce at 10.30 AM today judgment on the petitions challenging the electoral bonds scheme.A 5-judge bench comprising Chief Justice of India DY Chandrachud, Justices Sanjiv Khanna, BR Gavai, JB Pardiwala and Manoj Misra heard the matter and reserved the verdict on November 2 last year.The petitioners - Association for Democratic Reforms...
A Constitution Bench of the Supreme Court will pronounce at 10.30 AM today judgment on the petitions challenging the electoral bonds scheme.
A 5-judge bench comprising Chief Justice of India DY Chandrachud, Justices Sanjiv Khanna, BR Gavai, JB Pardiwala and Manoj Misra heard the matter and reserved the verdict on November 2 last year.
The petitioners - Association for Democratic Reforms (ADR), Communist Party of India (Marxist), Dr Jaya Thakur -challenge the amendments introduced by the Finance Act 2017 which paved the way for electoral bonds scheme. According to the petitioners, the anonymity attached to the electoral bonds affects the transparency in political fundings and infringes the voters' right to information. They also contended that the scheme allowed contributions to be made through shell companies
The Union Government defended the scheme as a method to ensure that 'white' money is used for political funding through proper banking channels. The Government further contended that it was necessary to keep the identity of donors confidential so that they would not face any retribution from political parties.
During the hearing, the bench raised several pertinent queries to the Central Government about the scheme, flagging its "selective anonymity" and also asked whether it is legalising kickbacks for parties. The bench observed that it was possible for the ruling party to know the identity of the donors, whereas the opposition parties could not get such information. The bench also raised questions about the removal of the condition that companies can only donate a maximum of 7.5% of their net profits to political parties.
While concluding the hearing, the bench also directed the Election Commission of India to submit to the Court in a sealed cover the details of the contributions received by all political parties through electoral bonds till September 30.
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Electoral Bonds which are within the validity period of 15 days but which have not been encashed by the political parties yet shall be returned by the political party to the purchaser. The issuing bank shall then refund the amount to the purchaser: Supreme Court
Correction : ECI shall publish the details of electoral bonds purchase in its website by March 13, 2024 (due to typographical error, the date was earlier mentioned as March 31).
Prashant Bhushan : This is a salutary judgment which will enhance our democratic process..
Solicitor General : This is for outside..photographers are waiting outside....
Justice Sanjiv Khanna starts pronouncement : I agree with the judgment of CJI. I have also applied the principles of proportionality but with slight variation. But the conclusions are the same.
CJI : SBI shall furnish the details of electoral bonds encashed by the political parties.
SBI shall submit the details to the ECI. ECI shall publish these details on the website by March 31, 2024.
CJI : Conclusions
1. Electoral bonds scheme is violative of Article 19(1)(a) and unconstitutional.
CJI : Amendment to companies Act are unconstitutional.
CJI : The issuing bank shall forthwith stop the issue of electoral bonds.
The State Bank of India shall furnish the details of donations through electoral bonds and the details of the political parties which received the contributions.
CJI : Before amendment, loss making companies were not able to contribute. The amendment does not recognize the harm of allowing loss-making companies to contribute due to quid pro quo. The amendment to Section 182 Companies Act is manifestly arbitrary for not making distincition between loss making and profit making companies.
CJI : A company has more graver influence on the political process than contributions by individuals. Contributions by companies are purely business transactions. Amendment to Section 182 Companies Act is manifestly arbitrary for treating companies and individuals alike.
CJI : It violates the right to information of citizens, about possible quid pro quo...
CJI : Amendment to S 182 of Companies Act become otiose in view of our finding that electoral bonds scheme is unconstitutional.
CJI : Amendment to the Companies Act (allowing blanket corporate political funding) is unconstitutional.