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CJI Chandrachud led bench has also observed that information on funding of political parties is important for effective democracy as this could lead to a quid pro quo situation where funders are given favors through various means like policy changes etc.
In its verdict today holding the 2018 Electoral Bonds Scheme as unconstitutional, the Supreme Court has directed that Electoral Bonds which are within the validity period of fifteen days but that which have not been encashed by the political party yet shall be returned by the political party or the purchaser depending on who is in possession of the bond to the issuing bank.
"The issuing bank, upon the return of the valid bond, shall refund the amount to the purchaser’s account", the judgment adds.
State Bank of India has also been directed to submit details of the Electoral Bonds purchased since the interim order dated 12 April 2019 till date to the ECI within three weeks.
"The details shall include the date of purchase of each Electoral Bond, the name of the purchaser of the bond and the denomination of the Electoral Bond purchased...SBI must disclose details of each Electoral Bond encashed by political parties which shall include the date of encashment and the denomination of the Electoral Bond", the court has ordered.
A CJI DY Chandrachud led bench of the Supreme Court today has held the 2018 Electoral Bonds Scheme to be unconstitutional.
"Electoral Bonds Scheme is Unconstitutional, Union of India has FAILED to establish least restrictive measures of the Electoral Bonds Scheme for political funding..", the CJI read out from his judgment today
Court has further held the scheme to be violative of Article 19(1) (a) of the Constitution of India.
The bench had reserved its verdict in the pleas challenging the 2018 Electoral Bonds Scheme in November last year.
Government notified the Electoral Bond Scheme in 2018. According to a press release, an Electoral Bond is a bearer instrument in the nature of a Promissory Note and an interest free banking instrument. A citizen of India or a body incorporated in India will be eligible to purchase the bond. The press release further states that electoral bond would be issued/purchased for any value, in multiples of 1,000, 10,000, 1,00,000, 10,00,000 and 1,00,00,000 from the specified branches of the State Bank of India (SBI).
Case Title: Association for Democratic Reforms & Anr. vs. Union of India & Ors.
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