Electoral Bonds Case | Chronology of Events

Vaibhav Ojha

2 years ago

Electoral bonds allow donors to anonymously give funds to political parties after buying bearer bonds. Supreme Court today (15 Feb 2024) declared Electoral Bonds scheme Unconstitutional.

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“Amendment to Section 29(1)(c) of RPA and IT act amendment is declared to be unconstitutional, Electoral Bonds scheme is struck down as unconstitutional.”
-CJI DY Chandrachud.

Electoral Bonds Case | Chronology of Events

New Delhi: The chronology of events in the case related to validity of the electoral bonds scheme, a mode of funding to political parties, in which 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; are-

2017: The Electoral bond scheme was introduced in the Finance Bill.
Sep 14, 2017: NGO ‘Association for Democratic Reforms’, lead petitioner, moves SC challenging the scheme.
Oct 03, 2017: SC issues notices to Centre and EC on PIL filed by the NGO.
Jan 2, 2018: The Central government notifies the Electoral Bond Scheme.
Nov 7, 2022: The electoral bond scheme was amended to increase the sale days from 70 to 85 in a year where any assembly election may be scheduled.
Oct 16, 2023: SC bench headed by CJI DY Chandrachud refers pleas against the scheme to a five-judge Constitution bench.
Oct 31, 2023: A five-judge Constitution bench headed by CJI D Y Chandrachud commences hearing on pleas against the scheme.
Nov 2, 2023: SC reserves verdict.
Feb 15, 2024: SC delivers unanimous judgement annulling the scheme, saying it violates Constitutional right to freedom of speech and expression as well as the right to information.

ALSO READ: BREAKING | Supreme Court Declares Electoral Bonds Scheme Unconstitutional

Major Remarks Made by the Supreme Court Regarding Electoral Bonds

The electoral bonds scheme is unconstitutional and violates citizens’ right to information, potentially leading to quid pro quo arrangements.

The issuing bank, particularly the State Bank of India, must immediately cease the issuance of electoral bonds. Additionally, details of donations made through electoral bonds and the recipient political parties must be disclosed.

Financial contributions to political parties serve two purposes: either to support a political party or as a form of quid pro quo.

Not all political contributions aim to influence public policy; some are made by students, daily wage workers, etc. Thus, denying privacy protection to political contributions solely based on certain motives is impermissible.

Contributions by companies have a more significant impact on the political process compared to individual donations. Such contributions are often business transactions. Treating companies and individuals alike under the Companies Act Section 182 amendment is arbitrary.