Case Note & Summary
The case involved a Public Interest Litigation filed by the Association for Democratic Reforms and Common Cause against the Union of India, challenging the constitutionality of several provisions of the Finance Act, 2017 and related amendments affecting political funding. The petitioners sought a declaration that these provisions were unconstitutional and requested a writ of mandamus to prevent political parties from accepting cash donations. The Supreme Court had previously issued an interim order on April 12, 2019, requiring political parties to submit details of donations received through electoral bonds to the Election Commission of India. The petitioners later filed applications seeking a stay on the Electoral Bond Scheme, arguing that it allowed for donor anonymity and could facilitate corruption. The Attorney General defended the scheme, asserting it was designed to curb unaccounted money in elections by mandating banking channels for donations. The Court analyzed the concerns raised, particularly regarding anonymity and the potential for misuse, but concluded that the scheme included sufficient safeguards to ensure transparency. The Court noted that the bonds could only be purchased by Indian citizens or entities and that the financial statements of companies purchasing the bonds would reflect these transactions. Ultimately, the Court dismissed both applications for stay, affirming the legitimacy of the Electoral Bond Scheme and the legislative intent behind it.
Headnote
A) Constitutional Law - Electoral Bond Scheme - Constitutionality of Provisions - Finance Act, 2017, Sections 135, 137, 154; Representation of the People Act, 1951, Section 29C; Income Tax Act, 1961, Section 13A; Companies Act, 2013, Section 182; Foreign Contribution (Regulation) Act, 2010, Section 2(1)(j)(vi) - Petitioners challenged the constitutionality of various provisions of the Finance Act, 2017 and related amendments, claiming they undermine electoral integrity. The Court held that the scheme has safeguards ensuring transparency and accountability, thus dismissing the applications for stay (Paras 1-28).
Issue of Consideration
Whether the Electoral Bond Scheme is unconstitutional and whether to grant a stay on its operation.
Final Decision
The Supreme Court dismissed both applications for stay on the Electoral Bond Scheme, affirming its constitutionality and the safeguards it provides for transparency in political funding.
Law Points
- Electoral Bond Scheme
- Public Interest Litigation
- Anonymity in Political Donations
- Right to Information
- Interim Relief
