Supreme Court’s Electoral Bond Verdict: Key Points in Landmark Decision

In an important setback for the Bharatiya Janata Party, the Supreme Court ruled on Thursday that the electoral bonds plan violates the right to knowledge as well as the freedom of speech and expression guaranteed by the Constitution.

The bench was hearing a series of petitions questioning the validity of the Central government’s electoral bonds system, which permits political parties to receive anonymous money. At the outset of the decision, Chief Justice of India DY Chandrachud stated that there are two views, one by himself and one by Justice Sanjiv Khanna, and both reach the same result.

On November 2, last year, a five-judge Constitution bench led by Justice Chandrachud reserved its ruling in the case.

Electoral bonds scheme: Supreme Court verdict in 10 points

1. A five-judge Constitution bench headed by CJI DY Chandrachud delivered two separate and unanimous verdicts on the pleas challenging the electoral bonds scheme, delivering a major blow to the central government.
2. Pronouncing the verdict, CJI Chandrachud said the electoral bonds scheme is violative of freedom of speech and expression under Article 19(1)(a) of the Constitution.
3. The Supreme Court said infringement to the Right to Information is not justified to curb black money.
4. The top court bench said the fundamental right to privacy also includes citizens’ right to political privacy and affiliation.
5. The bench also held as invalid the amendments made in various laws, including the Representation of Peoples Act and the Income Tax laws.
6. The Supreme Court ordered the State Bank of India or SBI to disclose to the Election Commission the names of the contributors to the six-year-old scheme.
7. The bench directed that the issuing bank shall stop issuance of electoral bonds and the SBI shall submit details of electoral bonds purchased since April 12, 2019, till date to the Election Commission of India.
8. The Supreme Court said information about corporate contributors through electoral bonds must be disclosed as the donations by companies are purely for quid pro quo purposes.
9. The court held that amendments in the Companies Act permitting unlimited political contributions by companies are arbitrary and unconstitutional.
10. The electoral bonds scheme, which was notified by the government on January 2, 2018, was pitched as an alternative to cash donations made to political parties as part of efforts to bring transparency in political funding.

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