Supreme Court Reserves Verdict On Pleas Challenging Validity Of Electoral Bonds

On Thursday (2 November), the Supreme Court reserved its verdict on a batch of petitions challenging the validity of the electoral bonds scheme, which was introduced to fund political parties and enhance transparency in political funding. 

A five-judge constitution bench, led by Chief Justice D Y Chandrachud and including Justices Sanjiv Khanna, B R Gavai, J B Pardiwala, and Manoj Misra, commenced hearing arguments on 31 October. 

The petitions were filed by various parties, including Congress leader Jaya Thakur, the Communist Party of India (Marxist), and the NGO Association for Democratic Reforms (ADR), as reported by The Economic Times.

The electoral bonds scheme, initiated by the government on 2 January, 2018, allows any Indian citizen or entity incorporated in India to purchase these bonds. Individual or joint purchases are possible. 

Only political parties registered under Section 29A of the Representation of the People Act, 1951, and securing at least 1 percent of the votes polled in the last Lok Sabha or state legislative Assembly election are eligible to receive electoral bonds. 

These bonds can only be encashed by eligible political parties through authorized bank accounts.

Notably, the Supreme Court had declined to stay the electoral bonds scheme in April 2019, emphasizing the importance of addressing the "weighty issues" raised by the Centre and the Election Commission, which significantly impact the sanctity of the electoral process in the country.