SC to hear requests challenging Electoral Bond scheme in March 

The Supreme Court on Tuesday said that it will hear in March a batch of pleas challenging the government’s Electoral Bond scheme which allows for anonymous funding to political parties.

A bench of Chief Justice of India DY Chandrachud and PS Narasimha passed an order to that effect on Tuesday, according to Bar and Bench. “Electoral Bonds case will be listed in third week of March for final hearing,” said the apex court.

The top court also said that two other petitions – one raising the issue of bringing political parties under the Right to Information Act (RTI Act) and the other regarding the certification under the Foreign Contribution Regulation Act (FCRA) for political funding – are distinct from the case of the electoral bonds and will be heard separately. The bench posted the matters for hearing in April.

“Let reply be filed to the political parties under RTI case, in 2 weeks. Regarding the FCRA issue, let reply be filed by end of February 2023. Political parties under RTI (to be heard) in early April and FCRA issue in the middle of April, 2023,” the top court said.

Earlier, advocate Prashant Bhushan, representing NGOs Association for Democratic Reforms and Common Cause – petitioners in the case, had told the top court that the matter should be referred to a five-judge Constitution bench, reported the NDTV.

The fresh application was filed by Congress leader Jaya Thakur in the main matter, pending since 2017. The Congress leader had challenged the Electoral Bond scheme which allows for anonymous funding to political parties.

Electoral bonds were introduced through Finance Act 2017. The Act, in turn, amended three other statutes – the RBI Act, the Income Tax Act and the Representation of People Act – for enabling introduction of such bonds.

Electoral Bond

• The electoral bonds scheme removes all pre-existing limits on political donations and effectively allows well-resourced corporations to fund elections subsequently paving the way for crony capitalism.
• Electoral bonds are purchased anonymously by donors and are valid for 15 days from the date of issue.
• State Bank of India is authorised to issue and encash these bonds.
• The bonds are issued by SBI in denominations of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore.
• It is an instrument in the nature of a promissory note or bearer bond which can be purchased by any individual, company, firm or association of persons provided the person or body is a citizen of India or incorporated or established in India.
• The bonds, which are in multiple denominations, are issued specifically for the purpose of contribution of funds to political parties in its existing scheme in the country.

-INDIA NEWS STREAM