PM Modi: "Everyone Will Regret It (on The Supreme Court Decision To Scrap Electoral Bonds)"

On electoral bonds, PM Narendra Modi Today (April 15th) said: “Due to electoral bonds you are getting the trail of the money. Which company gave it? How did they give it? Where did they give it? And that is why I say when they will think honestly, everyone will regret it (on the Supreme Court decision to scrap electoral bonds)”

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PM Modi: "Everyone Will Regret it (on the Supreme Court Decision to Scrap Electoral Bonds)"

NEW DELHI: Prime Minister Narendra Modi today voiced his perspective on the Supreme Court’s decision to scrap the electoral bonds scheme, a move that has sparked considerable debate. He underscored the transparency introduced by electoral bonds, emphasizing their role in providing a clear trace of political donations.

According to him, the scheme facilitated insights into the financial contributions made to political parties, including the specifics of the donating entities, the method of donation, and the location of these transactions.

PM Modi expressed his belief that an honest evaluation of the situation would lead to widespread regret over the Court’s decision to abolish the electoral bonds. He suggested that the scheme was pivotal in ensuring transparency and accountability in political funding, allowing for a detailed understanding of the financial flows within the political landscape.

“Due to electoral bonds you are getting the trail of the money. Which company gave it? How did they give it? Where did they give it? And that is why I say when they will think honestly, everyone will regret it (on the Supreme Court decision to scrap electoral bonds)”

-PM Modi

This statement reflects Modi’s stance on the importance of electoral bonds in promoting a transparent political funding mechanism, amidst ongoing discussions on their impact and the Supreme Court’s recent judgment.

This comes after the Supreme Court invalidated the electoral bonds scheme, which permitted anonymous donations to political parties.

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 bonds scheme violated the right to information and impinged upon free speech and expression under Article 19(1)(a) of the Constitution.

“The Electoral Bonds Scheme, as well as the proviso to Section 29(1)(c) as amended by Section 139 of the Income Tax Act and Section 13(b) as amended by the Finance Act 2017, violates Article 19(1)(a),”
-the judgment stated.

The Court mandated that the State Bank of India, as the issuer of electoral bonds, must disclose details of political parties that received electoral bonds and provide all relevant information to the Election Commission of India (ECI) by March 6.

By March 13, the ECI must publish this information on its official website, and political parties must subsequently reimburse the amount of electoral bonds to the purchasers’ accounts.

Two judgments were rendered, one by CJI DY Chandrachud and the other by Justice Sanjiv Khanna, both concurring.

The Court asserted that the scheme could advantage the party in power.

“Economic inequality results in varying levels of political engagement. Access to information influences policy-making and may also lead to quid pro quo arrangements, which may benefit the party in power,”
-the judgment stated.

Furthermore, the Court concluded that the electoral bonds scheme could not be justified by claiming that it would combat black money in politics.

Lastly, while acknowledging the importance of donor privacy, the Court emphasized that transparency in political funding cannot be achieved by granting absolute exemptions.

The bench had on November 2, 2023 reserved its judgment on the case concerning the legal validity of the scheme, after a three-day hearing.

The Supreme Court while reserving its verdict had asked the Election Commission of India (ECI) to submit data up till September 30, 2023 regarding electoral bonds sold under the scheme.

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.