The Supreme Court of India delivered a landmark verdict on February 15, 2024, striking down the Electoral Bonds Scheme as unconstitutional. This decision was made following a batch of petitions challenging the validity of the scheme, which allows for anonymous funding to political parties. The court found the scheme to be violative of the Right to Information and Article 19(1)(a), emphasizing that it infringes upon the fundamental Right to Information of citizens to know who is contributing money to political parties. The court also pointed out that the scheme does not provide a level playing field for political parties and is opaque, which could potentially lead to quid pro quo arrangements between donors and political parties.
Key points from the verdict include:
- The Supreme Court ordered the State Bank of India to stop issuing Electoral Bonds and to disclose the details of the bonds encashed by political parties.
- The verdict also invalidated amendments in the Companies Act that permitted unlimited political contributions by companies, labeling these amendments as "arbitrary" and "unconstitutional."
- The court emphasized the need for transparency in political funding and suggested that the government could develop a scheme that addresses the current system's shortcomings without compromising the citizens' Right to Information.
This ruling has been hailed as a significant step towards ensuring transparency in political funding, with political parties and activists praising the Supreme Court's decision as a reinforcement of the principle that the power of votes should prevail over the power of money in the democratic process.
Case Name - Association for Democratic Reforms & Anr. v. Union of India & Ors. | Writ Petition (Civil) No. 880 of 2017
