A five-judge Constitution bench, comprising Chief Justice of India (CJI) DY Chandrachud and Justices Sanjiv Khanna, BR Gavai, JB Pardiwala, and Manoj Misra will deliver the verdict.
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The Supreme Court is poised to render its verdict on 15th February 2024, Thursday, tomorrow, regarding the legal validity of the electoral bonds scheme, a mechanism that facilitates anonymous donations to political parties. This contentious issue has been under scrutiny, and the court’s decision will have far-reaching implications.
A five-judge Constitution bench, comprising Chief Justice of India (CJI) DY Chandrachud and Justices Sanjiv Khanna, BR Gavai, JB Pardiwala, and Manoj Misra, conducted an exhaustive three-day hearing on this matter. The bench reserved its judgment on November 2, 2023, prompting anticipation and speculation among legal experts and citizens alike.
During the proceedings, the Supreme Court directed the Election Commission of India (ECI) to furnish data up to September 30, 2023, specifically related to electoral bonds sold under the scheme. This data will play a crucial role in informing the court’s decision.
Understanding Electoral Bonds
The electoral bonds scheme allows donors to anonymously contribute funds to a political party. These donors purchase bearer bonds from the State Bank of India (SBI), ensuring their identities remain undisclosed. Here are the key aspects of electoral bonds:
- Nature of Electoral Bonds: An electoral bond functions as a promissory note or bearer bond. It serves as a financial instrument through which individuals, companies, firms, or associations can channel funds to political parties. However, the donor must be a citizen of India or an entity incorporated or established in India.
- Denominations and Purpose: Electoral bonds are issued in multiple denominations. Their primary purpose is to contribute funds to political parties within the existing framework. These bonds play a critical role in financing political activities and campaigns.
- Origins and Legal Framework: The introduction of electoral bonds dates back to the Finance Act of 2017. This legislation amended three significant statutes: the RBI Act, the Income Tax Act, and the Representation of People Act. The amendments paved the way for the issuance and utilization of electoral bonds.
- System of Issuance: Under the 2017 Finance Act, scheduled banks were authorized to issue electoral bonds. This system streamlined the process of electoral funding, allowing donors to contribute while maintaining their anonymity. Notably, the Finance Act was passed as a money bill, bypassing the need for approval from the Rajya Sabha.
The Legal Battle
The legal validity of the electoral bonds scheme has been a subject of intense debate. Advocates argue that it promotes transparency and encourages political participation. Critics, on the other hand, raise concerns about the lack of transparency due to anonymous donations.
Various petitions challenging the scheme were filed, including one by the Association for Democratic Reforms (ADR). The ADR questioned the constitutional validity of the bill, leading to the current legal battle. Now, as the Supreme Court prepares to deliver its verdict, the nation awaits a landmark decision that will shape the future of political funding in India.
In conclusion, the electoral bonds scheme stands at the intersection of democracy, transparency, and financial mechanisms. The court’s ruling will determine whether this innovative approach to political funding aligns with constitutional principles and public interest.