Supreme Court Strikes Down Electoral Bond Scheme as Unconstitutional

In a landmark verdict that could reshape political funding in India, the Supreme Court on Thursday unanimously struck down the Electoral Bond Scheme, calling it violative of the fundamental right to information under Article 19(1)(a) of the Constitution. The five-judge Constitution bench, led by the Chief Justice, ordered the State Bank of India to disclose all bond purchase details to the Election Commission within three weeks.

Court's Reasoning

The bench held that anonymous political funding undermines the electorate's ability to make informed choices. "Voters have the right to know who is funding which political party. This information is essential for a functioning democracy," the court observed in its 247-page judgment.

The ruling has sent shockwaves through the political establishment, with both ruling and opposition parties scrambling to assess the implications. Political funding experts estimate that over Rs 16,000 crore was routed through electoral bonds since the scheme's inception in 2018, with the ruling party being the largest beneficiary.

"The scheme was designed to bring transparency to political funding, but in practice, it created an opaque system that favored those in power," noted constitutional law expert Professor Arvind Narayan.

The government has indicated it will study the judgment before deciding on next steps, while civil society organizations have hailed the verdict as a victory for transparency. The Election Commission has been directed to publish all disclosed data on its website within one week of receiving it from SBI.