SC To Hear Pleas Seeking SIT Probe Into Electoral Bond Scheme On July 22

The Supreme Court will hear a series of petitions on July 22 demanding an investigation by a special investigation team (SIT) into an alleged scam involving electoral financing through electoral bonds (EBs).

This comes after the Supreme Court declared the electoral bond scheme unconstitutional on February 15, reported the Hindustan Times.

The petitions argue that data released by the Supreme Court shows that a significant portion of electoral bonds were given as "quid pro quo" by corporates to political parties for fiscal gains or to avoid actions by central agencies like the Central Bureau of Investigation (CBI), Enforcement Directorate (ED), and the Income Tax Department.

"The data shows private companies have paid crores of funds to political parties either as 'protection money' for protection against agencies under the central government or as a 'bribe' in return for undue benefits. In some instances, it has been seen that the political parties in power at the Centre or in states have apparently amended policies and/or laws to provide benefits to private corporates at the cost of public interest and the public exchequer," alleged a petitioner.

The petitioners claim that these payments were made either as "protection money" to avoid scrutiny or as bribes in exchange for undue benefits.

They allege that political parties in power have amended policies and laws to benefit private companies, causing harm to public interest and the public exchequer.

On February 15, a five-judge bench of the Supreme Court unanimously struck down the electoral bond scheme, ruling it unconstitutional for violating Article 19 of the Constitution due to its lack of transparency in funding political parties.

The court also invalidated related provisions in the Companies Act, Income Tax Act, and Representation of the People Act, ordering the State Bank of India (SBI) to cease issuing electoral bonds immediately.

The released data revealed that 1,260 companies and individuals purchased electoral bonds worth ₹12,769 crore, with the top 20 companies alone accounting for ₹5,945 crore, nearly half of the total amount donated through the scheme.