New Delhi: In a landmark decision, the Supreme Court has ruled the electoral bonds scheme unconstitutional, citing violations of the right to information under Article 19(1)(a) of the Constitution. The scheme, which allowed for anonymous donations to political parties, was deemed to be in conflict with principles of transparency and fair elections.
The constitution bench, comprising Chief Justice DY Chandrachud and Justices Sanjiv Khanna, BR Gavai, JB Pardiwala, and Manoj Misra, delivered a unanimous verdict after hearing arguments challenging the scheme over three days. Chief Justice Chandrachud, delivering the lead judgement, stated that the scheme failed to pass the restrictive means test and that alternative measures could have been used to prevent black money from entering politics.
The court emphasised the importance of the right to information and privacy, stating that financial contributions are a form of political affiliation and are protected under the right to informational privacy. The court rejected the government’s argument that certain provisions of the scheme balanced the right to information with privacy, noting that these provisions favoured privacy over transparency.
As a result, the court declared several related provisions unconstitutional, including amendments to the Income Tax Act, the Representation of Peoples Act, and the Companies Act. The court ordered the issuing bank to cease the issuance of electoral bonds immediately and directed the State Bank of India to disclose details of donations made through electoral bonds and the political parties that received them.
