The Supreme Court in New Delhi is currently hearing a series of petitions challenging the constitutional validity of the electoral bonds scheme, which allows anonymous donations to political parties. Led by Chief Justice DY Chandrachud, a five-judge constitution bench will examine two key issues: the legality of anonymous donations and the violation of citizens’ right to information regarding political party funding.
Electoral bonds are a financial instrument introduced by the BJP government in 2018 as an alternative to cash donations. They enable individuals and businesses to donate money to political parties without disclosing their identity. The bonds were touted as a means to bring transparency to political funding. Any Indian citizen or entity incorporated or established in India can purchase electoral bonds, which are available in various denominations ranging from Rs 1,000 to Rs 1 crore at State Bank of India (SBI) branches. These donations are interest-free.
Although the donor’s identity is not publicly disclosed, both the government and the bank maintain records of the purchaser’s details for auditing purposes and to ensure the use of legitimate funding sources.
The Supreme Court will hear four petitions challenging electoral bonds, including those filed by Congress leader Jaya Thakur and the Communist Party of India (Marxist). Critics argue that the anonymity of donors could facilitate corruption and favoritism in politics. The lack of disclosure to the public and the Election Commission makes it difficult to trace the origin of political contributions.
Ahead of the court hearing, Attorney General R Venkataramani contended that citizens do not have the right to information under Article 19(1)(a) of the Constitution regarding the source of funds. He argued that the electoral bonds scheme promotes clean money and does not violate any existing rights.
According to data from the Election Commission, the BJP received over half of all electoral bonds purchased between March 2018 and 2022. They acquired Rs 5,270 crore out of a total of Rs 9,208 crore, accounting for 57% of all electoral bonds sold during that period. The Congress party received Rs 964 crore or 10%, while West Bengal’s ruling Trinamool Congress received Rs 767 crore or 8% of all electoral bonds.
The Supreme Court’s decision on the constitutional validity of electoral bonds will have significant implications for political funding transparency in India.
