In a landmark verdict, the Constitutional Bench of the Supreme Court, led by Chief Justice of India D.Y. Chandrachud, has ruled the electoral bonds scheme unconstitutional, citing violations of Article 19(1)(a). The court also deemed the amendment to Section 182 of the Companies Act, which allowed corporate political funding, as unconstitutional.
As a result, the State Bank of India, the sole issuer of electoral bonds, has been directed to cease issuance immediately and disclose details of donations made through electoral bonds, along with the recipient political parties, by March 6, 2024. Additionally, the Election Commission has been tasked with publishing these details on its website by March 31, 2024. Furthermore, any electoral bonds not yet encashed by political parties must be returned to the bank for refund to the purchaser.
The court struck down crucial amendments facilitating the electoral bonds scheme and declared exemptions for political parties from maintaining detailed records of contributions received through electoral bonds as unconstitutional. Chief Justice Chandrachud criticized the amendment to Section 182 of the Companies Act, stating it treated corporate and individual political contributions equally, thus violating the principle of ‘one person, one vote’. The verdict followed extensive hearings and challenges to the scheme, highlighting the significance of transparency in political funding and upholding democratic principles.