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Facts:
- The Association for Democratic Reforms (ADR) petitioned the Delhi High Court to enforce recommendations for transparency in India’s electoral process.
- The recommendations, proposed by the Law Commission at the Government of India’s request, included mandating candidates to disclose personal details such as criminal records, educational background, and financial information.
- The Delhi High Court ruled in favour of the petition, affirming voters’ right to know about candidates’ backgrounds for the sake of democracy.
- The Union of India appealed this decision to the Supreme Court, contesting the jurisdiction of the Election Commission and the Delhi High Court in mandating such disclosures and disputing voters’ entitlement to such information.
Issues:
Jurisdiction: Whether the court has the authority to adjudicate on the Electoral Bonds Scheme issue.
Unlimited Corporate Funding: Whether allowing unlimited corporate funding to political parties infringes on the principle of free and fair elections and equality.
Anonymity in Electoral Bonds Scheme: Whether anonymity embedded in the Electoral Bonds Scheme violates voters’ right to information.
Decisions:
Jurisdiction: The Supreme Court held that the Electoral Bonds Scheme’s key features, such as anonymity and unlimited corporate funding, were closely related to the electoral process rather than purely economic considerations, affirming the court’s authority to adjudicate the issue.
Unlimited Corporate Funding: The court ruled that unlimited corporate contributions undermine the principle of free and fair elections by enabling disproportionate influence on policy-making, going against the essence of “one person, one vote.”
Anonymity in Electoral Bonds Scheme: The court determined that existing frameworks already protect both donor privacy and voters’ right to know. Donations above ₹20,000 require recording and disclosure, satisfying the right to know, while non-disclosure for donations below ₹20,000 protects individual donor privacy. The court affirmed Parliament’s wisdom in setting ₹20,000 as the threshold where the right to privacy ends and the right to information begins.
Additionally, the court issued two main rulings:
- It affirmed the Election Commission’s power to issue directions to fill legislative voids until suitable laws are enacted and emphasized citizens’ right to know about public functionaries, derived from the right to freedom of speech and expression.
- It directed the Election Commission to obtain information from candidates for election to Parliament or State Legislature regarding criminal charges, assets, liabilities, and educational qualifications, ensuring transparency in the electoral process.
The directions of the Court-
- Cessation of Electoral Bonds Issuance: The State Bank of India (SBI) is instructed to cease the issuance of electoral bonds.
- Furnishing Details to Election Commission: SBI is mandated to furnish details of all Electoral Bonds purchased from 12 April 2019 until the present date to the Election Commission of India (ECI). This information must include the date of purchase of each bond, the name of the purchaser, and the denomination of the bond purchased.
- Providing Information on Contributions to Political Parties: SBI is further directed to provide the ECI with comprehensive information regarding political parties that have received contributions through Electoral Bonds from 12 April 2019 onwards. This should include details of each Electoral Bond encashed by political parties, specifying the date of encashment and the denomination of the Electoral Bond.
- Submission Deadline: SBI is required to submit the aforementioned information to the ECI within three weeks from the date of the judgment, specifically by 6 March 2024.
- Publication by Election Commission: The ECI is instructed to promptly publish the information shared by SBI on its official website within one week from the receipt of the information, i.e., by 13 March 2024.
Return and Refund of Uncashed Electoral Bonds: Any Electoral Bonds that are still within the validity period of 15 days but have not been encashed by political parties are to be returned by the respective party and refunded to the purchaser’s account.
