A constitution bench comprising five Supreme Court judges is poised to initiate hearings on a batch of pleas contesting the validity of the electoral bond scheme for political party funding, starting from October 31. The constitution bench, presided over by Chief Justice DY Chandrachud, will deliberate on four petitions, including those filed by Congress leader Jaya Thakur and the CPI(M), news agency PTI reported. The bench comprises Justices Sanjiv Khanna, BR Gavai, JB Pardiwala, and Manoj Misra.
The electoral bond scheme, introduced by the government on January 2, 2018, was presented as an alternative to cash donations to political parties, aimed at enhancing transparency in political funding.
According to the provisions of the scheme, electoral bonds can be purchased by any Indian citizen or entity incorporated or established within India. Individuals can acquire electoral bonds either individually or jointly with others.
Earlier this month, on October 16, the apex court emphasised the significance of the matter and invoked Article 145(4) of the Constitution of India, calling for the case to be heard by a bench of at least five judges, PTI’s report mentioned.
On October 10, the Supreme Court took cognisance of submissions by lawyer Prashant Bhushan, representing the NGO Association for Democratic Reforms (ADR), who asserted that the matter required adjudication before the electoral bond scheme is set to be employed in the 2024 general elections.
Bhushan contended that anonymous funding through electoral bonds fosters corruption and infringes upon citizens’ right to a corruption-free nation. He argued that such a practice promotes corruption by keeping the source of funding anonymous, in violation of Article 21, the report stated.
A petitioner in a public interest litigation (PIL) had previously claimed that Rs 12,000 crore had been disbursed to political parties via electoral bonds, with a substantial portion going to one major political party.
The Supreme Court, on March 21, had decided to assess whether the pleas could be referred to a constitutional bench for a definitive ruling.
ADR, which initiated the first PIL on the matter in 2017, addressing concerns of corruption and subversion of democracy through illicit and foreign funding of political parties, had submitted an interim plea to prevent the reopening of electoral bond sales.
On January 20, 2020, the apex court had declined to grant an interim stay on the 2018 Electoral Bonds Scheme and had sought responses from the Centre and the Election Commission in response to an interim plea by the NGO for a stay on the scheme.
Under the Electoral Bond Scheme, only political parties registered under Section 29A of the Representation of the People Act, 1951, and that secured no less than one percent of the votes polled in the last general election to Lok Sabha or the state legislative assembly, are eligible to receive electoral bonds.
The scheme stipulates that electoral bonds can only be encashed by an eligible political party through an account with an authorised bank.
The Supreme Court, in April 2019, had declined to stay the Electoral Bond Scheme and expressed its intent to conduct a thorough hearing on the pleas, considering the substantial implications it bears on the integrity of the electoral process in the country. The Centre and the Election Commission had held opposing positions in the court on political funding, with the government advocating for donor anonymity and the poll panel advocating for donor transparency in the interest of political funding integrity.