The Supreme Court of India has announced that it will deliver its verdict on the validity of electoral bonds before the 2024 general elections. Electoral bonds are anonymous banking instruments that allow corporations, firms, and individuals to donate to political parties. The court has agreed to hear the petitions challenging the bonds on October 31, with the expectation that arguments will be completed within two days.
Supreme Court on Tuesday said it will give its verdict before the commencement of the 2024 general elections on a bunch of petitions challenging the validity of electoral bonds - a banking instrument through which corporates, firms and individuals can donate anonymously to political parties - on the ground that these have been catalysts of corruption.
A bench of Chief Justice DY Chandrachud and Justices JB Pardiwala and Manoj Misra agreed to list the bunch of petitions for hearing on October 31 as parties undertook to complete arguments on this sensitive issue within two days.
The bench's decision sets the stage for an interesting legal duel. A foretaste of what could unfold during the two potentially eventful days became immediately available, with attorney general R Venkataramani saying the government was ready to show to the court that these instruments facilitated complete transparency in funding. He said while the donor was kept secret from the public, the source of funds had to be disclosed to the designated bank - State Bank of India.
Advocates Prashant Bhushan and Shadan Farasat alleged that despite reservations expressed by both RBI and the Election Commission, the NDA government floated electoral bonds, facilitating large corporates to donate huge sums to political parties, which smacked of quid pro quo. Electoral funding must be transparent and the public must know who gave funds to which political party to make an informed choice, Bhushan said.
SC had twice junked pleas for stay on issuance of poll bonds
During an earlier hearing, the Union government through solicitor general Tushar Mehta had said: "The prescribed methodology of receiving monies through electoral bonds is so transparent that it is impossible for political parties to get unaccounted or black money as donation".
Petitioners have called electoral bonds a sham and said these polluted free and fair elections. Bhushan had said the government floated electoral bonds and amended the Foreign Contribution Regulation Act to allow any subsidiary of a foreign company to donate to political parties as well as public servants, which was polluting the elections.
On March 26, 2021, the SC had rejected a plea for stay on issuance of fresh electoral bonds. It had also rejected a similar request in 2019, while making certain interim arrangements every time the electoral bonds window was opened.
Under Clause 8(1) of the Electoral Bonds Scheme, 2018, the bonds are made available for purchase for a period of 10 days each in the months of January, April, July and October every year. The Centre had said, "The SC in its March 27, 2019, order had asked all political parties to submit details of donations received through electoral bonds to the Election Commission in sealed cover. So, there is little chance of black money being used as donations to political parties." The EC had supported the issuance of electoral bonds.