In its ruling on Thursday, the Supreme Court invalidated the electoral bonds scheme, a system permitting anonymous donations to political parties, deeming it "unconstitutional" and affirming that it infringed upon the freedom of speech and expression as enshrined in Article 19(1)(a) of the Constitution. This decision, delivered by a Constitution bench led by Chief Justice of India DY Chandrachud, emerges just months before the scheduled Lok Sabha election.
In a unanimous judgment, the Supreme Court directed the State Bank of India (SBI), the issuing bank, to promptly cease the issuance of electoral bonds. Additionally, the apex court issued a series of directives to the SBI regarding the provision of details about electoral bonds to the Election Commission of India (ECI).
The electoral bonds initiative, initiated in 2018, was presented by the government as an alternative to cash donations to political entities, aimed at enhancing transparency in political funding.
The following are the instructions outlined by the Supreme Court:
1. The SBI must cease the issuance of electoral bonds without delay.
2. The SBI is mandated to furnish particulars of electoral bonds procured since April 12, 2019, to the Election Commission of India (ECI), including the purchase date of each electoral bond, the identity of the purchaser, and the denomination of each electoral bond acquired.
3. Comprehensive information regarding political parties that have received contributions via electoral bonds must also be provided to the Election Commission.
4. The SBI is required to transmit these details to the ECI within three weeks, by March 6, 2024.
5. The Election Commission is tasked with publishing the data received from the SBI on its official website by March 13, 2024.
6. The Supreme Court stipulated that any electoral bonds not yet cashed by political parties must be returned to the original purchaser, with the SBI obligated to reimburse the amount to the purchaser's bank account.
