The Supreme Court of India has mandated the Election Commission of India (ECI) to provide comprehensive data on funds political parties have received through electoral bonds by September 30, 2023. This directive was issued by a Constitution Bench led by Chief Justice of India DY Chandrachud, which also includes Justices Sanjiv Khanna, BR Gavai, JB Pardiwala, and Manoj Misra. The ECI is to submit this information in a sealed cover to the court’s Registry within two weeks.
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The bench has reserved its verdict after a series of hearings spanning three days on a batch of pleas challenging the electoral bond scheme. This scheme, introduced by the central government, allows for anonymous donations to political parties, a point of contention for the petitioners.
During the proceedings, the bench expressed its dissatisfaction with the ECI for not having the updated data on electoral bonds donations.
“We would like the Election Commission of India (ECI) to get the data up to September 30, 2023. We have heard arguments. Judgment reserved,”
the bench stated. The court also clarified that the ECI was expected to continuously collect data following an interim order from April 12, 2019, and not just for the 2019 Lok Sabha elections.
Advocate Amit Sharma, representing the ECI, initially conveyed the commission’s misunderstanding of the April 2019 order, believing it pertained only to the 2019 elections. The bench refuted this, with CJI Chandrachud emphasizing,
“But we didn’t freeze the data which was to be maintained. You were to continue collecting the data.”
Justice Khanna added that the ECI should have sought clarification if there was any doubt.
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Senior advocate Kapil Sibal, representing one of the petitioners, criticized the electoral bond scheme, stating,
“This is the most unconstitutional, undemocratic, unfair scheme which destroys the basic structure of the constitution.”
The bench also contemplated the possibility of an alternative system for political donations that could address the “serious deficiencies” of the current electoral bond system. CJI Chandrachud remarked,
“We do not want to go back to a cash-only system. We are saying do it in a proportionate, tailor-made system which overcomes the serious deficiencies of this electoral bond system.”
The electoral bond scheme has been a subject of debate, with various petitions pending before the top court challenging amendments made to different statutes through the Finance Act 2017 and Finance Act 2016. These amendments are said to have opened the doors to unlimited, unchecked funding of political parties.
The NGOs Association of Democratic Reforms and Common Cause have argued that the Finance Bill, 2017, which introduced the Electoral Bond scheme, was passed as a money bill, a point of legal contention.
As the Supreme Court awaits the ECI’s data submission, the judgment on the electoral bond scheme remains highly anticipated, with potential implications for political funding transparency in India.
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