The Supreme Court's Landmark Decision: Striking Down Electoral Bonds

This Post is based on the article "The clear message in the Court’s ‘no’ to electoral bonds " Which is Published in the The Hindu on 17th February 2024. 

Introduction:

• The Supreme Court of India, in its ruling on February 15, 2024, has made a significant decision by striking down the electoral bonds scheme. 

• This move highlights the crucial need for transparency in democracy, particularly concerning campaign funding.

Transparency Restored

• The electoral bonds scheme was criticised for its opacity, leaving voters unaware of who funded political parties and the amounts involved. 

• Transparency in campaign funding, a cornerstone of leading democracies, has been reinstated by the Court's decision.

Limits on Corporate Funding

• The Court's judgment addresses legal issues, including the removal of limits on corporate funding, which can lead to undue influence on the government. 

• By reinstating these limits, the Court aims to prevent the potential misuse of funds for political gains.

Preventing Crony Capitalism

• The electoral bonds scheme allowed for unrestricted donations from corporations, even permitting loss-making companies to contribute. 

• This loophole could have facilitated the creation of shell companies for funnelling funds to political parties, perpetuating crony capitalism. The Court's decision curtails such practices.

Constitutional Concerns

• Amendments to the Reserve Bank of India Act, allowing the issuance of electoral bonds by scheduled banks, were challenged and struck down by the Court. 

• These amendments were made through the Finance Act, bypassing the Rajya Sabha, raising questions about the legislative process and transparency.

Judicial Intervention

• The Court's judgment is rooted in constitutional principles, citing violations of Articles 19 and 14, which guarantee the right to information and equality under the law, respectively. 

• The State Bank of India is directed to cease issuing electoral bonds and disclose all past transactions to the Election Commission of India.

Celebrating Democratic Institutions

• The decision underscores the vital role of constitutional bodies like the Election Commission and the Supreme Court in safeguarding democracy. 

• Judicial review ensures that laws align with constitutional values, emphasising the importance of upholding the rule of law.

Continued Vigilance

• While the Court's ruling addresses electoral funding transparency, challenges related to money in elections persist. 

• Citizens must remain vigilant in holding political parties accountable for their actions and ensuring they prioritise the welfare of society and the nation.

Conclusion

• The Supreme Court's decision to strike down the electoral bonds scheme marks a pivotal moment in Indian democracy, reaffirming the importance of transparency and accountability in political processes.

• The landmark judgment of the Supreme Court of India is a reminder that citizens need to be ever watchful in a democracy.