The Supreme Court of India declared the electoral bonds scheme unconstitutional and struck it down on May 30, 2024 [1, 2].
The ruling removes a layer of anonymity from political funding in India. By striking down the scheme, the court aims to prevent the influence of undisclosed corporate money on the democratic process.
In its judgment, the court said the scheme violated the right to information, and the principle of equality [3, 4]. The court found that allowing unlimited, anonymous corporate contributions made the system manifestly arbitrary [3, 4]. This anonymity, the court noted, could shield the identities of donors and the parties receiving the funds from public scrutiny.
Addressing the potential for corruption, the majority opinion of the court said, "Financial support to political parties can lead to quid pro quo" [2]. The court further ruled that the State Bank of India must reveal the details of the donors [1].
Reactions to the verdict were immediate. Congress leader Chinta Mohan said, "The verdict is a victory for democracy" [1]. An unnamed civil society member also said the decision restores transparency in political funding [1].
Despite the ruling, reports have emerged regarding the government's response. Some reports indicate the Modi government has attempted to use the State Bank of India to bulldoze the judgment [1], while other reports emphasize that the judgment is final and the scheme must be stopped immediately [2].
“"Financial support to political parties can lead to quid pro quo."”
This ruling marks a significant shift in Indian electoral transparency by dismantling a legal framework that allowed corporations to fund political parties without public disclosure. By linking anonymous funding to the risk of 'quid pro quo' arrangements, the court has reinforced the legal requirement that voters have a right to know who is financing political campaigns to ensure fair and transparent elections.
