Electoral Bonds Not Encashed Yet Shall Be Refunded: Supreme Court

In a landmark judgment today, the Supreme Court of India declared the electoral bonds scheme for political funding as unconstitutional, citing a violation of citizens’ right to information. Chief Justice of India DY Chandrachud termed the scheme arbitrary and expressed concerns about its potential to lead to quid pro quo arrangements between political parties and donors.

“Electoral bonds scheme has to be struck down as unconstitutional. It violates the right to information of citizens, about possible quid pro quo,” the court said in its ruling.

“Financial contributions to political parties are made for two parties – for support to political party, or contribution may be way of quid pro quo,” the bench added.

As a pivotal aspect of the judgment, Chief Justice Chandrachud directed the State Bank of India (SBI) to cease the issuance of electoral bonds immediately. Additionally, the court mandated that SBI must disclose details of political parties that received electoral bonds since the inception of the scheme in 2018. These particulars, including the date of purchase, name of the purchaser, denomination, and details of parties receiving contributions through electoral bonds, are to be submitted to the Election Commission of India (ECI) by March 6.

Moreover, the SBI is instructed to provide information on each encashed bond. The Chief Justice emphasized the importance of transparency and accountability in the political funding process.

Furthermore, the court addressed the issue of electoral bonds within the validity period of 15 days that remain unencashed by political parties. It mandated that these bonds should be returned and refunded to the purchasers. The process involves the initiating bank refunding the purchasing party after the unencashed bonds are returned.

By March 13, the Election Commission of India has also been directed to publish the disclosed information on its official website, making it accessible to the public. This move aims to foster transparency and enable citizens to scrutinize the financial dealings between political parties and donors.