A 5-judge bench of CJI DY Chandrachud, Justices Sanjiv Khanna, BR Gavai, JB Pardiwala and Manoj Misra delivering the judgment on electoral bonds.
CJI: Amendment to S 182 of Companies Act become otiose in view of our finding that electoral bonds scheme is unconstitutional. A company has more graver influence on the political process than contributions by individuals. Contributions by companies are purely business transactions. Amendment to Section 182 Companies Act is manifestly arbitrary for treating companies and individuals alike.
Supreme Court holds Electoral Bonds scheme is violative of Article 19(1)(a) and unconstitutional. Supreme Court strikes down Electoral Bonds scheme. Supreme Court says Electoral Bonds scheme has to be struck down as unconstitutional.
CJI delivering verdict on electoral bonds: “The only purpose of amending section 182(3) of the companies act becomes otiose after we hold that EB scheme, IT act making non disclosures acceptable and RP Amendment as unconstitutional.
1. EB Scheme, proviso to section 29(1)(c) as amended by section 139 of IT Act and Section 13(b) as amended by Finance act 2015 is violative of article 19(1)(a).
2. The issuing bank shall herewith immediately STOP issuing electoral bonds. SBI shall issue details of the political parties which received electoral bonds and all the particulars received and submit them to ECI by March 6.
3. By March 13 ECI shall publish it on official website political parties to thereafter refund the Electoral bonds amount to the purchasers account.
Why the SC ruled electoral bonds unconstitutional
The Supreme Court on Thursday struck down the electoral bonds scheme, saying it violates the right to information and freedom of speech and expression under the Constitution.
A five-judge Constitution bench headed by Chief Justice D Y Chandrachud delivered two separate but unanimous verdicts on pleas challenging the scheme.
Pronouncing the verdict, the CJI said the scheme is violative of freedom of speech and expression under Article 19(1)(a) of Constitution.
The bench said the fundamental right to privacy includes citizens’ right to political privacy and affiliation.
The scheme, which was notified by the government on January 2, 2018, was pitched as an alternative to cash donations made to political parties as part of efforts to bring in transparency in political funding.
According to the provisions of the scheme, electoral bonds may be purchased by any citizen of India or entity incorporated or established in the country. An individual can buy electoral bonds, either singly or jointly with other individuals.-
