The Centre on Friday argued before the Supreme Court that the electoral bonds scheme is an absolutely transparent mode of political funding and it is impossible to get any black or unaccounted money through it.

 “The methodology of receiving money has been so transparent. We will explain step by step. Now it is impossible to get any black or unaccounted money. It is the most transparent system. To say it affects democracy does not hold water,” Solicitor General Tushar Mehta, told a bench of Justices BR Gavai and BV Nagarathna.

The top court was hearing PILs by NGO, Association for Democratic Reforms, Communist Party of India (Marxist) and other petitioners. Advocate Prashant Bhushan, appearing for NGO, said this is a very interconnected issue which affects democracy. He said the matter should be heard urgently as electoral bonds are being issued just before every state election.  Advocate Kapil Sibal, appearing for one of petitioners, said issue should be heard by a larger bench. The court said it would examine on December 6 whether a batch of pleas challenging laws permitting funding of political parties through the electoral bond scheme should be referred to a larger bench.

The apex court said this is an important matter which requires detailed hearing and sought assistance of the Attorney General and Solicitor General in the matter.

Earlier, Bhushan had sought an urgent listing of PIL from the apex court on October 4 last year seeking a direction to the Centre not to open any further window for sale of electoral bonds during pendency of a case pertaining to funding of political parties and alleged lack of transparency in their accounts.

The NGO, in its fresh application filed in pending petition, had claimed that there is a serious apprehension that any further sale of electoral bonds before upcoming Assembly elections, including in West Bengal and Assam, would further increase illegal and illicit funding of political parties through shell companies.

On January 20 last year, the apex court had refused to grant interim stay on the 2018 Electoral Bonds Scheme and sought responses of Centre and poll body on an interim application by NGO seeking stay on the scheme.

 The Government notified the Electoral Bond Scheme on January 2, 2018.

According to provisions of the scheme, electoral bonds may be purchased by a person, who is a citizen of India or incorporated or established in India. An individual can buy electoral bonds, either singly or jointly with other individuals.