Supreme Court Declares Electoral Bonds Scheme ‘Unconstitutional’

On 15 Feb, the Supreme Court of India struck down the Electoral Bonds Scheme (EBS) as ‘unconstitutional and manifestly arbitrary.’ EBS provided blanket anonymity to political donors and critical legal amendments allowing rich corporations to make unlimited political donations. EBS was announced in 2018 by the BJP-led government. A five-judge Bench headed by Chief Justice of India D.Y. Chandrachud held that the Indian government’s scheme, and preceding amendments made to the Representation of the People Act, the Companies Act, and the Income Tax Act, violated the voters’ right to information about political funding under Article 19(1)(a) of the Constitution. An analysis of the electoral bonds scheme shows that the ruling BJP garnered nearly 55% of the funds till Mar 2023, while its closest rival, INC, got a mere 9.3%. The highest sale of EBS bonds for the whole 30 phases was during the last general elections. From 1-20 Apr 2019, bonds worth $272M were sold. According to EBS data released by Election Commission of India, until Mar 2023, the BJP received $792M while the INC $136M. The judgment, though widely celebrated for blocking BJP’s access to funds, needs to be taken with a pinch of salt. The BJP has moved so far ahead in raising funds that no one can catch up with them. Like 2019, this is an election year. Corporations are watching INC to show promise in its Bharat Nyay Jodo Yatra (India Unity & Justice March) (SDW Vol. 2 Issue 4, Story 8). Now Panjab and Haryana farmers have erupted in protest. These spoil BJP’s chances to some extent, but corporations can no longer invest in INC or any other opposition.