In a unanimous verdict on the validity of the electoral bond schemes, a Constitution bench headed by CJI Chandrachud said political parties are relevant uništs in the electoral process and information about the funding of political parties is essential to make informed electoral choices.
Pronouncing a verdict on a batch of petitions challenging the validity of the electoral bonds, the Supremeā Court on Thursday struck down the scheme while terming it 'unconstitutional'. The apex court held that the scheme violates the right to information and freedom of speech and expression under the Constitution.
A five-judge Constitution bench headed āby Chief Justice D Y Chandrachud delivered two separate but unanimous verdicts on ļ·½pleas challenging the scheme.
Pronš¼ouncing the verādict, the CJI said the scheme is violative of freedom of speech and expression under Article 19(1)(a) of Constitution.
In a unanimous verdict, the Constitution bench headed by CJI Chandrachud said political parties are relevš¤Ŗant units in the electoral process and information about funding of political parties is essential to make informed electoral choices.
The apex court on Thursday directed that the issuing bank shall stop issuance of electoral bonds and the State Bank of India shall suš¹bmit details of electoral bonds purchased since April 12, 2019 till date to the Eālection Commission.
SC also held that anonymous electoral bonds are violative of right to information, and freedom of speech under Article 19(1)(a) of the Constitution. The bš¼ench further added fundź¦amental right to privacy also includes citizensā right to political privacy and affiliation.
The provisions of the scšheme allow any citizen of India or entity incorporated or established in the country to purchase electoral bonds eiź©µther singly or jointly with other individuals.
Only the political parties registered under Section 29A of the Representation of the People Act, 1951 and which secured not less than 1 per cent of the votes polled in the last elections to the Lok Sabha or a state legislative assembly areā eligible to receive electš¶oral bonds.
The scheme, which was notified by the government on January 2, 2018, was pitched as an altešrnative to cash donations made to political parties as part of efforts to bring in transparency in political funding. According to the notifiācation, electoral bonds shall be encashed by an eligible political party only through an account with an authorised bank.
In April 2019, the apex court had declined to stay the electoral bonds scheme and made it clear that it would accord an in-depth hearing on the pleas as the Centre and the Election Commission had raised "weighty iāssues" that had "tremendous bearing on the sanctity of the electoral process in the countrāy".
The Constitution bench, also comprising Justices Sanjiv Khanna, B R Gavai, J B Pardiwala and Manoj Misra, had on October 31 last year commenced hearing arguments on the four petitions, including those filed by Congress leader Jaya Thakurš, the Communist Party of India (Marxist) and NGO Association for Democāratic Reforms (ADR).
Duringš¬ the hearing in the matter, the apex court had underscored the need for reducing the cash cošmponent in the electoral process.