Supreme Court on Electoral Bonds: A Legal Analysis
Author- Mrudula Kale,
University of Mumbai Law Academy
Abstract
Political funding through electoral bonds has been considered as a great financial tool in India though it has its own controversies. Electoral bonds were launched in March 2018 and were proposed by the Indian Government to encourage more foreign contributions to parties, but would protect the identity of these donors. However, many critics say that the former provide window dressing for opacity and favouritism. The high stakes of the political battles over these bonds have been the subject of examination of the constitutional law in the Supreme Court of India. This article engages in the legal debate for electoral bonds by constructing a legal discourse that is supported by judgments and ruling in courts.
The Concept of Electoral Bonds
Electoral bonds are also bearer bonds which any of the sanctioned Indian citizen or any Indian entity can procure. As it can be given to any political party that has been accredited under the Representation of the People Act, 1951. Although the identity of the donor is unknown to the public, the issuing bank, that is State Bank of India (SBI), has a record book, which is opened for the records of the Government. On the positive side, it is believed that the system makes political funding much cleaner, from the negative perspective, opponents have put forward that with the help of the system accountability and fairness are eroding.
The Supreme Court’s Perspective
The Supreme Court has grappled with the constitutional validity and impact of electoral bonds since their inception. Key issues under judicial scrutiny include:
Transparency and Right to Information: Whether electoral bonds infringe upon citizens’ right to information under Article 19(1)(a) of the Constitution.
Equality in Electoral Processes: Whether the scheme creates an uneven playing field by disproportionately favoring ruling parties.
Violation of Fundamental Rights: Whether anonymity of donors undermines public trust in electoral democracy.
The Proof
The legal scrutiny of electoral bonds is rooted in empirical data and expert opinions:
Election Commission of India (ECI): In its submissions, the ECI has raised concerns about electoral bonds it said distorted the electoral process and threatened the very principles of electoral democracy.
Reserve Bank of India (RBI): RBI has expressed its apprehension for these instruments to be used for money laundering and other unregulated financial flows.
Parliamentary Debate: The Finance Minister has been criticised for presenting electoral bonds through a Finance Bill and not through a separate legislation.
Case Laws
The legal scrutiny of electoral bonds is rooted in empirical data and expert opinions:
Election Commission of India (ECI): In its papers, the ECI has expressed dismay over electoral bonds it said skewed the electoral process and even challenged the tenets of electoral democracy.
Reserve Bank of India (RBI): RBI has raised concern that these instruments may be used for money laundering and other exempted financial flows.
Parliamentary Debate: There has been a lot of criticism leveled on the Finance Minister for presenting electoral bonds in the form of a Finance Bill and not in the form of a bill.
Judicial Observations
The Supreme Court has therefore been very careful in its approach with an aim of addressing all parties’ concerns. The Court also has supported the idea of the government hiding the donor identity to avoid political reprisal amid acknowledging the role of transparency in democratization.
Conclusion
The controversy on electoral bonds reveals how organisations and political actors respond to or avoid issues of political funding. Analyzing the judgments of Supreme Court, one infers about the overhauling watchdog function of judiciary in protective democracy. In particular, there are several sets of circumstances related to the scheme that have been partially addressed by the Court, although the decision on the constitutional legitimacy of electoral bonds has not yet been made In the meantime, the observations and orders of the Court help to identify the problematic aspects of the implementation of the scheme.
FAQS
1. What are electoral bonds? Electoral bonds are financial instruments introduced in 2018 to enable anonymous political donations to registered political parties.
2. Why are electoral bonds controversial? Critics argue they undermine transparency in political funding, disproportionately favor ruling parties, and could be misused for unaccounted financial flows.
3. What is the Supreme Court’s stance? The Supreme Court has not stayed the scheme but continues to examine its constitutional validity and impact on democratic processes.
4. How do electoral bonds affect citizens’ rights? Opponents claim they violate the right to information under Article 19(1)(a) by concealing donor identities, thus reducing accountability in electoral processes.
5. Are there alternatives to electoral bonds? Proposals include strengthening existing mechanisms for political funding transparency, such as mandatory disclosures and state-funded elections.
