State Bank of India (SBI) has been directed to disclose details of electoral bonds received by political parties to the Election Commission of India (ECI) by March 6. ECI is expected to make this information public on its website by March 13.
Coimbatore: In a landmark verdict, the Supreme Court today has ruled that the electoral bonds scheme, which permits anonymous donations to political parties, is unconstitutional. This decision asserts that the scheme infringes upon the right to information under Article 19(1)(a) of the Indian Constitution, thereby compromising transparency in political funding. The five-judge Constitution Bench, led by the Chief Justice, unanimously agreed on the verdict, with Justice Sanjiv Khanna providing a concurring opinion that offered a slightly different rationale.
The court also invalidated amendments made to the Income Tax Act and the Representation of People Act, which facilitated anonymity in political donations. Additionally, the State Bank of India (SBI) has been directed to disclose details of electoral bonds received by political parties to the Election Commission of India (ECI) by March 6. The ECI is expected to make this information public on its website by March 13.
Rejecting the Centre's defense of the scheme as a measure against black money in politics, the Supreme Court criticized the justification that anonymity could foster transparency through the use of 'white' money in political funding. This scheme, initiated on January 2, 2018, allowed companies and individuals to contribute to political parties without disclosing their identities. It faced opposition from Congress leader Dr. Jaya Thakur, the Communist Party of India (Marxist), and the Association for Democratic Reforms (ADR), who argued it paved the way for unchecked anonymous donations, undermining the electorate's right to information.
The government had contended that donor anonymity was essential to prevent potential retaliation from political opponents, ensuring contributions were made through legitimate banking channels. However, the Supreme Court's dismissal of these arguments marks a significant shift towards enhancing transparency in the political funding landscape of India.
The court also invalidated amendments made to the Income Tax Act and the Representation of People Act, which facilitated anonymity in political donations. Additionally, the State Bank of India (SBI) has been directed to disclose details of electoral bonds received by political parties to the Election Commission of India (ECI) by March 6. The ECI is expected to make this information public on its website by March 13.
Rejecting the Centre's defense of the scheme as a measure against black money in politics, the Supreme Court criticized the justification that anonymity could foster transparency through the use of 'white' money in political funding. This scheme, initiated on January 2, 2018, allowed companies and individuals to contribute to political parties without disclosing their identities. It faced opposition from Congress leader Dr. Jaya Thakur, the Communist Party of India (Marxist), and the Association for Democratic Reforms (ADR), who argued it paved the way for unchecked anonymous donations, undermining the electorate's right to information.
The government had contended that donor anonymity was essential to prevent potential retaliation from political opponents, ensuring contributions were made through legitimate banking channels. However, the Supreme Court's dismissal of these arguments marks a significant shift towards enhancing transparency in the political funding landscape of India.