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Supreme Court Strikes Down Electoral Bonds Scheme, Calls It Unconstitutional and Unfair

By NDP newsroom

The Supreme Court of India has struck down the Narendra Modi government’s 2018 electoral bonds scheme, declaring it unconstitutional. The court held that the scheme, which allowed anonymous political donations, violated the right to information and freedom of speech. It emphasized that voters must have access to funding details to make informed choices, calling the lack of transparency in the scheme detrimental to free and fair elections.

The court also invalidated amendments to the Representation of the People Act, the Companies Act, and the Income Tax Act, which were made to implement the scheme. These amendments allowed political parties to receive funds through electoral bonds without disclosing the donor's identity, raising concerns about corporate influence on elections.

Additionally, the court directed the State Bank of India to disclose details of electoral bond transactions to the Election Commission, which will make the information public. The ruling was seen as a victory for electoral transparency, as it restricts the ability of companies to make unlimited political contributions, which the court found to be arbitrary and a threat to political equality.

The decision comes ahead of the 2024 Lok Sabha elections, following petitions from opposition parties and NGOs challenging the scheme’s legality. The Supreme Court's verdict is viewed as a significant step in promoting accountability in political funding.

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