THE NEWS FREEDOM
NEW DELHI, FEBRUARY 15
In a significant judgement ahead of the Lok Sabha elections, the Supreme Court on Thursday struck down the electoral bonds scheme and declared amendments to the Companies Act allowing unlimited political contributions as “arbitrary and unconstitutional.” The Supreme Court further directed the State Bank of India (SBI) to disclose details of all encashed bonds to the Election Commission by March 6.
Launched in 2018, the scheme facilitated anonymous donations from corporations and individuals to political parties through the purchase of electoral bonds from the State Bank of India (SBI). Notably, the SBI maintained exclusive access to the identities of bond purchasers.
A five-judge Constitution bench, led by Chief Justice D Y Chandrachud, mandated that the SBI must disclose details of each electoral bond encashed by political parties, including the encashment date and bond denomination. This information is to be submitted to the poll panel by March 6.
Pronouncement the order, the Supreme Court declared amendments in the Companies Act permitting unlimited political contributions by companies as arbitrary and unconstitutional. The Court emphasized the necessity for disclosure of information regarding corporate contributors through Electoral Bonds, noting that such donations by companies were motivated by quid pro quo arrangements.