The Supreme Court has made a landmark decision, declaring the Electoral Bond Scheme as unconstitutional. Launched in 2018 amid much fanfare, the scheme has faced intense scrutiny and criticism from various quarters. The apex court found several flaws and violations, notably against the right to information and Article 14 of the Indian Constitution guaranteeing equality.
The court’s decision was based on the argument that the scheme infringed on the principle of free and fair elections as stipulated in the constitution. It was noted that the electoral bond scheme allowed political parties to receive undisclosed contributions and enabled companies to make unlimited funding without disclosing the details of contributions in any form.
The Electoral Bond Scheme was introduced in 2018 following a series of amendments to financial rules in 2016 and 2017. The scheme’s purported objective was to bring transparency to political funding. However, the court’s ruling has brought to light the significant shortcomings of the system. The scheme has been criticized for allowing substantial amounts of “unknown income” to political parties.
According to data furnished to the Supreme Court, the “unknown income” of political parties from donations made under Rs 20,000 has continued to rise and has substantially increased in recent years. The data showed that the share of income from unknown sources for national parties rose to 72% during 2018-2019 to 2021-2022, with the bond income accounting for 81% of the total unknown income during the years 2019-2020 and 2021-2022.
The decision by the Supreme Court to declare the Electoral Bond Scheme unconstitutional has significant implications for political funding transparency and free and fair elections in India. It underscores the importance of upholding constitutional principles and ensuring equitable and transparent electoral processes. The ruling brings to the forefront the pressing need for comprehensive reforms in political funding and accountability to strengthen the democratic framework of the country.
