Supreme Court to deliver verdict on Electoral Bond Scheme: What is it? Who has the most funding? and concerns explained
Supreme Court is set to announce its verdict regarding petitions challenging the validity of the electoral bonds scheme on February 15. The Constitution bench, headed by Chief Justice DY Chandrachud, had reserved its decision on November 2 last year. In April 2019, the Supreme Court declined to stay the electoral bonds scheme, emphasising the need to reduce the cash component in the electoral process.
The Constitution bench, including Justices Sanjiv Khanna, BR Gavai, JB Pardiwala, and Manoj Misra, began hearing arguments on the matter on October 31 last year. Track LIVE: Electoral Bonds scheme verdict from Supreme Court Electoral bonds were introduced in the 2017 Union Budget to enhance transparency in political funding. Concerns arose due to donor anonymity and lack of disclosure.
The cash donation limit was reduced from ₹20,000 to ₹2,000, while mandatory disclosure remained at ₹20,000. Private entities could buy and transfer these bonds to political parties. It was notified by the government on January 2, 2018, and pitched as an alternative to cash donations made to political parties as parties.
In essence, electoral bonds are monetary instruments that citizens or corporate groups can buy from a bank and give to a political party, which is then free to redeem the same for money. Only political parties registered under Section 29A of the Representation of the People Act, 1951, and those that secured at least one percent of the votes in the last general election to the Lok Sabha or state legislative assembly are eligible to receive electoral bonds. Also Read | Farmers' protest Day 3: Centre to hold talks again with farm leaders; ‘rail roko’ in Punjab today.
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