Electoral Bonds: Supreme Court Slams SBI For Not Disclosing Full Details

NEW DELHI: The Supreme Court on Friday slammed the State Bank of India (SBI), the nation's largest lender, for failing to disclose comprehensive information regarding the electoral bonds scheme. The top court ordered the bank to provide full details, revealing crucial links between donors and political parties. The electoral bond scheme, which allowed individuals and businesses to donate to political parties anonymously, has come under scrutiny for its lack of transparency.

SC Responds To EC's Petition

Responding to a petition filed by the Election Commission, the apex court issued directives to SBI, urging the bank to provide not only the details it had already shared but also the electoral bond numbers. The five-judge bench, led by Chief Justice DY Chandrachud, emphasized the importance of disclosing all relevant information related to electoral bonds, which the court had previously struck down. The top court said that the judgment of the Constitution bench clarified that all details of electoral bonds will be made available including the date of purchase, name of the purchaser, and the denomination and asked SBI why it has not disclosed the electoral bonds (unique alphanumeric numbers).

Electoral Bonds: Supreme Court says SBI has not disclosed the numbers of the electoral bonds, which it had to do https://t.co/s5Jfkv8J1f — ANI (@ANI) March 15, 2024

SBI's Failure To Fully Disclose Bond Numbers

Chief Justice Chandrachud expressed disappointment with SBI's failure to disclose bond numbers, highlighting the necessity of this information. The court directed the SBI to rectify this omission and provide a complete account of electoral bond transactions during the past five years. "Who is appearing for the State Bank of India? They have not disclosed the bond numbers. It has to be disclosed by the State Bank of India," Chief Justice Chandrachud said right at the outset of the hearing.

Notice To SBI And Next Hearing 

In response to the court's notice, SBI has been summoned to explain its lapses during the upcoming hearing scheduled for March 18. The top court's scrutiny underscores the significance of transparency in electoral financing.

SC Accepts EC's Request

Supreme Court also accepted the request of ECI to return the data for being uploaded on the website. Supreme Court directed the Registrar Judicial to ensure that documents are scanned and digitised and once the exercise is complete the original documents shall be given back to ECI and it will then be uploaded on the website on or before March 17.

Affidavit Filed By SBI Chairman

The Chairman of SBI, Dinesh Kumar Khara, filed an affidavit on March 13, detailing the bank's compliance with the court's orders. The affidavit outlined the information furnished to the Election Commission, including the purchase and encashment dates of electoral bonds, as well as the names of purchasers and political parties involved.

Data On Electoral Bonds

According to SBI's affidavit, a total of 22,217 bonds were purchased between April 1, 2019, and February 15, 2024. The bank also provided a breakdown of bond transactions during this period, highlighting both purchases and redemptions.

SC Warns SBI Of Contempt Of Court

The Supreme Court cautioned SBI against contempt of court for any willful disobedience of its directives. Non-compliance with the court's orders could result in severe consequences for the bank, it said. Earlier court rulings mandated SBI to disclose electoral bond details by March 12, rejecting the bank's request for an extension until June 30. The court reiterated its stance on transparency, emphasizing the importance of timely disclosure.

SC Strikes Down Electoral Bonds Scheme

The court's decision to strike down the electoral bonds scheme reflects concerns over anonymous funding to political parties. The scheme, along with related amendments to tax and electoral laws, faced criticism for facilitating unchecked financial contributions.