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The Supreme Court on February 15 delivered its verdict on petitions challenging the validity of the electoral bond scheme, which allows anonymous funding of political parties. A five-judge Constitution bench headed by Chief Justice DY Chandrachud had reserved its verdict in the matter on November 2 last year. The Supreme Court has canceled the electoral bond scheme, terming it unconstitutional.
Highlights of the decision
1. Supreme Court says that the electoral bond scheme is a violation of freedom of speech and expression under Article 19(1)(a) of the Constitution.
2.
Held that anonymous electoral bonds are a violation of the Right to Information and Article 19(1)(a). The Supreme Court believes that anonymous electoral bonds are a violation of the right to information, freedom of expression under the Constitution.
Chief Justice of India DY Chandrachud, Justice Sanjiv Khanna, Justice BR Gavai, Justice JB Pardiwala and Justice Manoj Mishra delivered the verdict on the validity of electoral bonds.
An electoral bond is an instrument in the nature of a promissory note or bearer bond which can be purchased by any person, company, firm or association of persons, provided that the person or body is a citizen of India or is incorporated or established in India. Bonds are issued specifically for the purpose of contributing funds to political parties.
Only political parties registered under Section 29A of the Representation of the People Act, 1951 and which have secured at least 1 per cent of the votes in the previous elections to the Lok Sabha or State Legislative Assembly are eligible to receive electoral bonds.
The Center had said in an affidavit that the methodology of the electoral bond scheme is a “completely transparent” method of political funding and it is impossible to get black money or unaccounted money.
Various petitions challenging the amendments made to various statutes through the Finance Act 2017 and the Finance Act 2016 are pending before the apex court on the grounds that they have opened the door to unlimited, uncontrolled funding of political parties. NGO Association of Democratic Reforms and Common Cause had said that the Finance Bill, 2017, which paved the way for the introduction of the electoral bond scheme, was passed as a money bill, even though it was not.
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Published: Feb 15, 2024, 11:09 am IST
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