- SC ruled that,
- Anonymous electoral bonds are violative of the Right to Information (RTI) under Article 19(1)(a).
- Court also quashed the amendments made to the Income Tax Act and the Representation of People Act 1951 which made the donations anonymous.
- Amendments to Companies Act 2013 provision allowing unlimited corporate contributions is arbitrary and violative of Article 14.
- About Electoral Bonds Scheme (EBS):
- Finance Act 2017 introduced EBS that allowed corporations and individuals to anonymously donate money to political parties by purchasing electoral bonds from the SBI.
- Electoral bonds are interest-free bearer instruments like Promissory Notes, with 100% tax exemption.
- They are issued in multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 cr.
- A citizen of India or a body incorporated in India is eligible to purchase the bond.
- It was proposed as a measure to address the lack of transparency in political parties' funding and curbing black money.
- Issues related to EBS:
- As per RBI, shell companies may misuse bearer bonds for money laundering transactions.
- Unlimited and anonymous corporate funding infringes the principle of free and fair elections.
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Supreme Court (SC) strikes down the Electoral Bonds Scheme (EBS) as ‘unconstitutional’
Supreme Court (SC) strikes down the Electoral Bonds Scheme (EBS) as ‘unconstitutional’
Posted 16 Feb 2024
Updated 22 Mar 2024
1 min read
- Tags :
- SC on Electoral Bonds
- Electoral Bonds Scheme
- curbing black money.
- EB
- Electoral
- Bonds
- Electoral Bonds
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News Today (Feb 16, 2024)
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