The CJI said, “In view of the importance of the issue raised, and with regard to Article 145(4) of the Constitution of India, the matter be placed before a bench of at least five judges”.

The Supreme Court on Monday referred petitions challenging the 2018 Electoral Bonds Scheme to a five-judge Constitution Bench. While presiding over a three-judge bench, Chief Justice of India D Y Chandrachud made the announcement during mentioning hours, when matters that require urgent attention are brought to the notice of the court.

The CJI said, “In view of the importance of the issue raised, and with regard to Article 145(4) of the Constitution of India, the matter be placed before a bench of at least five judges”.

Though the petitioners had raised the demand to refer it to a Constitution Bench even earlier, the SC had not shown inclination to do the same. Taking it up on October 10, the CJI-led bench had fixed October 31 to hear it.

The top court is seized of a clutch of petitions including by two NGOs Common Cause and Association for Democratic Reforms (ADR), Congress leader Jaya Thakur and the CPI(M) challenging the scheme.

While the Centre has termed the scheme “a big step towards electoral reform” which “will ensure transparency” and “accountability”, petitioners have contended that it affects transparency in political funding. The petitioners have pointed out that it allows political parties not to disclose their annual contribution reports to the Election Commission of India (ECI) and details of the identity of those who have donated through the Electoral Bonds.

In April 2019, a three-judge SC bench, in an interim order, directed political parties, which received donations through Electoral Bonds, to “forthwith” submit the details of the bonds to the ECI.

Subsequently, while dismissing a prayer to stay the sale of fresh bonds in March 2021, the SC disputed the petitioner’s contention regarding the “complete anonymity” of bond purchasers. The Supreme Court had said, “It is not as though the operations under the scheme are behind iron curtains incapable of being pierced”.

The top court pointed out that bonds had been issued in the past — in 2018, 2019 and 2020 — “without any impediment” and it had already ordered “certain safeguards” by way of its April 2019 interim order.

The Supreme Court also referred to the EC receiving details of contributions received through bonds, in pursuance of the April 2019 order.

The top court said, “We do not know at this stage as to how far the allegation that under the scheme, there would be complete anonymity in the financing of political parties by corporate houses, both in India and abroad, is sustainable”.