• UGI USER
  • Feb 16, 2024
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SC STRIKES DOWN ELECTORAL BONDS SCHEME, CALLS IT UNCONSTITUTIONAL

Why in the news?

  • The Supreme Court rendered a landmark unanimous verdict, declaring the electoral bonds scheme unconstitutional and arbitrary.
  • Additionally, critical legal amendments permitting unlimited political donations by wealthy corporations were invalidated.
source:toi

Violation of Voters’ Rights:

  • The scheme and preceding amendments violated voters’ right to information about political funding under Article 19(1)(a) of the Constitution.
  • Absolute non-disclosure of political funding sources through electoral bonds fostered corruption and undue corporate influence in policy-making.
About Electoral Bonds

·    Introduced in 2017 through a Finance bill and implemented in 2018.

·    Designed as a method for individuals and entities to donate to registered political parties while preserving donor anonymity.

·     Issued by the State Bank of India (SBI) in denominations ranging from Rs 1,000 to Rs 1 crore.

·     Validity extends for 15 calendar days from the issuance date.

National Parties:

·     Electoral Bond donations to national parties surged by 743% from FY 2017-18 to FY 2021-22.

·     In contrast, corporate donations to national parties rose by only 48% during the same period.