Union Government Approved Rs 10,000-cr Electoral Bonds Days Before SC Ruling

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The Union government gave clearance for printing Rs 10,000 crore worth of electoral bonds just days before the Supreme Court’s decision to scrap the scheme

Union Government Approved Rs 10,000-cr Electoral Bonds Days Before SC Ruling

NEW DELHI: Recently, the Indian government’s decision to authorize the printing of Rs 10,000 crore worth of electoral bonds just days before the Supreme Court’s decision to nullify the scheme as unconstitutional created a topic of discussion on the transparency and ethics of political financing.

The Finance Ministry’s approval for the printing of 10,000 electoral bonds, each valued at Rs 1 crore, was finalized mere days before the Supreme Court delivered a judgment that would challenge the very foundation of the scheme.

The Security Printing and Minting Corporation of India (SPMCIL) was assigned with printing operation.

A five-judge Constitution bench consisting of Chief Justice of India (CJI) DY Chandrachud and Justices Sanjiv Khanna, BR Gavai, JB Pardiwala, and Manoj Misra unanimously quashed the scheme along with amendments made to the Income Tax Act and the Representation of People Act, which had facilitated anonymous donations.

The Court ruled that the anonymous nature of the electoral bond scheme violated the right to information and violated free speech and expression under Article 19(1)(a) of the Constitution.

Following the Supreme Court’s verdict, the Finance Ministry directed the State Bank of India (SBI) to cease the printing of the remaining electoral bonds. This directive came after it was revealed that a substantial number of bonds had already been printed and dispatched, indicating the advanced stage of the scheme’s implementation before the judicial review.

The electoral bonds scheme has been at the center of a heated debate regarding the transparency of political donations in India.

Advocates argue that the scheme ensures anonymity, thereby protecting donors from potential backlash. Critics, however, contend that this anonymity compromises transparency, allowing for undisclosed and potentially corrupt funding of political parties.

The timing of bond printing approval by the government has sparked discussions on political financing reform. Documents obtained through the Right to Information Act reveal the use of electoral bonds by major parties and their importance in political funding.