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The Chief Justice of India Justice NV Ramana today agreed to list and hear a plea challenging the laws that enable sale of electoral bonds by political parties. It is to be noted that the outcome of this plea will have implications on political parties as parties raise funds through issuing electoral bonds.

The plea was mentioned today by Prashant Bhushan, Advocate, before a bench headed by Chief Justice of India Justice NV Ramana and consisting of Justice Krishna Murari and Hima Kohli. Bhushan said, “It has been reported this morning that a Calcutta based company has paid Rs. 40 crores through electoral bonds to stop excise rate. It is distorting democracy.”

CJI on hearing Bhushan’s submission remarked, “If not for COVID, I would have heard this.” Bhushan replied saying the case is critical. The court then agreed to hear the matter, however a date has not been fixed as yet.

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).

The concept of electoral bonds were introduced in Finance Act 2017, by amending statutes such as the Reserve Bank of India Act, Income Tax Act and Representation of People Act.