SC rules electoral bonds scheme 'unconstitutional'; Here are the key takeaways from the verdict

economictimes.indiatimes.com:

Supreme Court has declared the electoral bonds scheme as "unconstitutional," stating that anonymous corporate contributions to political parties are «violative of the right to information.» The decision was announced by a bench led by Chief Justice of India DY Chandrachud on Thursday. The decision comes ahead of the Lok Sabha elections scheduled for April-May this year.

Key Observations and Directions from the Bench

• The Supreme Court has found the Electoral Bonds Scheme, along with certain provisions of the Income Tax Act and Finance Act 2015, to be violative of Article 19(1)(a) of the Constitution.
• The issuing bank, State Bank of India (SBI), has been directed to cease issuing electoral bonds immediately.
• SBI is required to provide details of the political parties that have received electoral bonds, including particulars such as purchase dates, purchaser names, and bond denominations, to the Election Commission (EC) by March 6. Additionally, SBI must disclose details of each encashed bond.
• The EC has been instructed to publish the information received from SBI on its official website by March 13.
• Electoral bonds that remain encashed by political parties are to be returned and refunded to the purchasers.

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Electoral bonds are bearer instruments that function as interest-free banking instruments and promissory notes. They can be purchased by Indian citizens or Indian-incorporated