Allow Cookies!
By using our website, you agree to the use of cookies
A batch of petitions challenging the electoral bonds scheme was adjourned for April 2 by the Supreme Court today.
The court was not able to hear the case today and ordered the listing of cases before an appropriate bench on April 2, said CJI Ranjan Gogoi. The matter will now be listed before another bench as the CJI is sitting in Constitution bench from tomorrow. The application seeking stay on the Electoral Bond Scheme 2018 will be also be considered on that day.
The political party Communist Party of India(Marxist), and NGOs Common Cause and Association for Democratic Reforms(ADR) have filed the petitions challenging the scheme as "an obscure funding system which is unchecked by any authority”
A stay application has been filed by ADR stating that 95% of the electoral bonds sold so far have been in favour of one political party, that is the current ruling party. The petition states that complete anonymity has been granted to corporate funding of political parties through electoral bonds which might lead to lobbying by the corporate funders to influence policy decisions.
It sought immediate stay of the scheme, stating that these electoral bonds are being made available for a large number of days in three months leading to general elections solely to benefit big corporate donors. Majority of the purchased bonds since 2018 have been of the denominations of 10 lakh and 1 crores, clearly indicating that not common citizens but corporates that have been purchasing these bonds while enjoying complete anonymity accorded by the scheme.
Scheme for Electoral bonds was notified by the Centre on January 2, 2018, wherein, electoral bonds in the nature of bearer instruments like a Promissory Note are capable of being purchased by an Indian citizen or a body incorporated in India. They can be issued to a political party on purchase from an authorised bank. The party can encash the bond within 15 days. Th identity of the owner is only known to bank, which is kept anonymous.
Electoral bonds were introduced by amendments made through the Finance Act 2017 to the Reserve Bank of India Act 1934, Representation of Peoples Act 1951, Income Tax Act 1961 and Companies Act.
The requirement of disclosure of names of political parties to who contributions have been made has been excluded through the amendments made in the Companies Act, 2013. The petitioners submitted that this will lead to "private corporate interests taking precedence over the needs and rights of the people of the State in policy considerations"
The Finance Act 2107 was introduced and passed as a “money bill”, hence, the scheme could not have been brought in through amendments by the Act,2017. The petitioners also stated that the amendments were disguised as money bill to bypass the upper house.
A counter-affidavit was filled by the Centre stating that the aim of the scheme of electoral bonds is to bring more transparence in political funding & the clause for anonymity has been inserted to protect the privacy of the donor.
86540
103860
630
114
59824