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Supreme Court refuses to stop sale of electoral bonds ahead of assembly polls
A bench, headed by Chief Justice of India SA Bobde, held that the electoral bonds were being issued periodically after a consultation with the Election Commission of India and that there was no change in circumstances that required it to put brakes on the sale at this juncture
The Supreme Court on Friday declined to stop the fresh sale of electoral bonds from April 1 till it decides on the validity of the instrument used for donating money to political parties.
A bench, headed by Chief Justice of India SA Bobde, held that the electoral bonds were being issued periodically after a consultation with the Election Commission of India and that there was no change in circumstances that required it to put brakes on the sale at this juncture.
The bench, which also included justices AS Bopanna and V Ramasubramanian, underlined that electoral bonds had been sold in the last three years in specified months as well.
The court order came on an interim application moved by the Association for Democratic Reforms (ADR), which requested that the court restrain the sale of these bonds ahead of the assembly elections in four states and a Union Territory.
The elections start on March 27, and end on April 29. The counting of votes is on May 2.
Also Read | EC supports electoral bonds, seeks transparency: Here’s what it told SC
Earlier, the ADR questioned what it called “anonymous funding to political parties”, adding transparency in elections was a right of voters not under the Right to Information Act but as a matter of right in a democracy.
Advocate Prashant Bhushan, representing ADR, argued that there was a serious apprehension that any further sale of electoral bonds before the upcoming state elections in West Bengal, Tamil Nadu, Kerala and Assam, would further increase illegal and illicit funding of political parties through shell companies.
Rebutting the allegations, attorney general KK Venugopal, appearing for the Centre, referred to certain checks and balances. He said that parties were required to file their income tax returns each year showing how they expended the money. The political party could face deregistration if it was found to participate in anti-national or illegal activities. Venugopal also said that the use of bonds was essential for the country as it curbed black money being used in elections.
On its part, the Election Commission (EC) told the Supreme Court that it supported the existing system of political party funding through electoral bonds, although it added that it would like the process to be more transparent.
Senior advocate Rakesh Dwivedi appearing for EC said, “The Commission is supporting electoral bonds and not opposing it. If we don’t support it we will go into a pre-existing system of receiving donations through cash. Electoral bonds goes one step forward as all bonds have to be obtained from the bank only. This way there is accountability. But we are also asking for transparency. That can be considered later by the court.”
