SC To Deliver Verdict On Validity Of Electoral Bond Today

The Supreme Court will pronounce its verdict on Thursday regarding a series of petitions challenging the electoral bond scheme. The verdict will be delivered by a 5-judge constitution bench, which includes Chief Justice of India DY Chandrachud.

A report from LiveLaw states that the bench, comprising Justices Sanjiv Khanna, BR Gavai, JB Pardiwala, and Manoj Misra, had reserved judgment on November 2 after a three-day hearing.

The petitioners in the case, including the Association for Democratic Reforms (ADR), the Communist Party of India (Marxist), and Dr Jaya Thakur, have contested the amendments introduced by the Finance Act 2017, which facilitated the electoral bonds scheme.

The petitioners argued that the anonymity of electoral bonds undermines the transparency of political funding and violates voters' right to information, which is fundamental in a democracy.

On the other hand, the Modi government has defended the scheme, describing it as a way to ensure that legitimate funds are used for political financing through proper banking channels.

The Government has further argued that the anonymity of these bonds is necessary to protect the identity of donors from potential retribution by political parties.

WHAT ARE ELECTORAL BONDS?

Electoral bonds are similar to promissory notes, payable to the bearer on demand and without interest. They allow Indian citizens or corporate entities to finance a political party, which can later redeem them.

The government introduced electoral bonds in 2018 to "cleanse the system of political funding in the country." They are meant to make political party funding more transparent, allowing donors to purchase bonds from authorized banks and redeem them through registered accounts within a specified time frame.

HOW CAN ELECTORAL BONDS BE PURCHASED?

Electoral bonds can be purchased by any Indian citizen or company registered in India at specified branches of the State Bank of India. Interested parties must complete KYC (Know Your Customer) requirements with the bank for authentication.

The bonds are interest-free and come in multiple denominations ranging from Rs 1,000 to Rs 1 crore. They do not carry the name of the payee and have a 15-day lifespan, during which they can be used for donations to eligible political parties.

Only political parties registered under Section 29A of the Representation of the People Act, 1951, and which received at least one per cent of the votes in the last Lok Sabha or state legislative assembly election, are eligible to receive electoral bonds.