New Delhi: The Supreme Court on Thursday scrapped the electoral bond scheme, saying it goes against the constitutional rights of freedom of speech and expression and information. The court ordered the State Bank of India (SBI) to disclose to the Election Commission the names of the donors and the amounts received by political parties through the six-year-old scheme. A five-judge Constitution bench led by Chief Justice D Y Chandrachud said the SBI must share the details of each electoral bond encashed by political parties by March 6. The information should include the date and the denomination of the bonds.


Here are 10 points explaining the SC verdict on Electoral Bonds:


  1. The bench said the Election Commission should publish the information provided by SBI on its official website by March 13.
  2. The bench, which also included Justices Sanjiv Khanna, B R Gavai, J B Pardiwala and Manoj Misra, gave two separate and unanimous verdicts on the petitions challenging the scheme.
  3. The CJI said the scheme violates the right to freedom of speech and expression under Article 19(1)(a) of Constitution. He said the scheme and the related provisions also infringe upon the right to information of the voter by hiding the identity of the donors.
  4. The bench said the fundamental right to privacy also covers the citizens’ right to political privacy and affiliation.
  5. The court also declared as invalid the amendments made in various laws, including the Representation of Peoples Act and the Income Tax laws.
  6. The court directed that the SBI should stop issuing electoral bonds and submit details of bonds bought since April 12, 2019 till date to the Election Commission. It should also submit details of political parties which have received donations through electoral bonds since April 12, 2019 till date to the poll panel.
  7. The court heard arguments on the four petitions, filed by Congress leader Jaya Thakur, the Communist Party of India (Marxist) and the NGO Association for Democratic Reforms (ADR), in October last year. The petitioners and their lawyers hailed the verdict as a victory for democracy and transparency.
  8. The scheme, which was announced by the government on January 2, 2018, was proposed as an alternative to cash donations made to political parties as part of efforts to bring transparency in political funding.
  9. According to the provisions of the scheme, electoral bonds may be bought by any citizen of India or entity incorporated or established in the country. An individual can buy electoral bonds, either singly or jointly with other individuals without disclosing the identity.
  10. Critics have said this removes transparency in electoral funding and gives an advantage to ruling parties. On November 2 last year, the top court reserved its verdict in the matter. In April 2019, the apex court declined to stay the scheme and made it clear that it would accord an in-depth hearing on the pleas.