• Source:ANI
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The Supreme Court will decide today the legal validity of the central government's electoral bonds scheme, which allows anonymous funding to political parties. A five-judge Constitution bench, led by Chief Justice of India DY Chandrachud will deliver its verdict on a batch of pleas challenging the constitutionality of the scheme, which is scheduled for 10:30 am today. 

The scheme which was introduced by the government on January 2, 2018, was seen as an alternative to replace cash donations and enhance transparency in political funding. A top court bench led by CJI Chandrachud reserved its verdict on the matter on November 2 last year, following a three-day hearing on a batch of pleas. 

Under this scheme, the name and other crucial details are not entered on the bonds, raising suspicions of corruption. The petitions challenging the validity of the scheme were filed by the Association for Democratic Reforms, Common Cause and the Communist Party of India (Marxist).

During hearings, Solicitor General Tushar Mehta, representing the Centre, said that the electoral bonds scheme assures the fair use of funds for political purposes through proper banking channels. He also highlighted the importance of keeping donor identities confidential to protect them from potential retribution by political parties.

During the hearing, CJI Chandrachud proposed looking for other alternatives for political donations to address the flaws in the current electoral bond system without reverting to a cash-only system.

"We do not want to go back to a cash-only system. We are saying do it in a proportionate, tailor made system which overcomes the serious deficiencies of this electoral bond system. You can still devise a system which balances out in a proportional way. How it is to be done is for you to decide. We will not step into that arena, that is not part of our function," CJI Chandrachud said.

All About Electoral Bonds Scheme

The scheme was notified by the government on January 2, 2018, as an alternative to the cash donations made to the political parties to bring in trans[parency in political funding. An electoral bond is a promissory note or bearer bond that can be purchased by any individual, company, firm, or association of individuals as long as the person or entity is an Indian citizen or is incorporated or established in India. 

The bonds are specially issued for the purpose of contributing funds to political parties. 

“The purchaser would be allowed to buy an electoral bond(s) only on due fulfilment of all the extant KYC norms and by making payment from a bank account. It will not carry the name of payee. Electoral Bonds would have a life of only 15 days during which it can be used for making donation only to the political parties registered under section 29A of the Representation of the Peoples Act, 1951 (43 of 1951) and which secured not less than one per cent of the votes polled in the last general election to the House of the People or a Legislative Assembly,” the Ministry of Finance said.