SC cancels electoral bond scheme, calls it unconstitutional

The Supreme Court on Thursday, February 15 struck down the controversial electoral bond scheme that allows anonymous donations to political parties, saying it is unconstitutional and violates Article 19(1)(a) of the Constitution, which Guarantees “rights” to all citizens. Freedom of speech and expression”.

A five-judge Constitution bench comprising Chief Justice of India (CJI) DY Chandrachud and Justices Sanjiv Khanna, BR Gavai, JB Pardiwala and Manoj Mishra unanimously struck down the scheme and the amendments made to the Income Tax Act and the Representation of the People Act. Donation made anonymous.

“The provisions of section 29(1)(c) of the Income Tax Act as amended by section 139 of the Electoral Bond Scheme and section 13(b) as amended by the Finance Act 2017 are violative of Article 19(1)(a). The amendments to the Income Tax Act and the Representation of the People Act on complete non-disclosure of donations have been struck down, the CJI said.

The bench heard several petitions for three days and reserved its decision in November. While reserving its judgement, the SC had asked the Election Commission of India (ECI) to furnish data regarding electoral bonds sold by September 30, 2023.

Although the bench reached a unanimous verdict, CJI Chandrachud read the main judgment and Justice Khanna wrote a separate but concurring judgment with different reasoning.

“I agree with the CJI’s decision. I have also applied the principles of proportionality but with slight variations. But the findings remain the same,” Khanna said of his decision.