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. |