SC to decide if pleas on electoral bond scheme to be referred to Constitution bench on April 11

Senior advocate Dushyant Dave referred to the ensuing Karnataka Assembly elections in which another tranche of electoral bonds would be open for sale

The Supreme Court on Tuesday decided to examine if pleas challenging the validity of electoral bonds scheme should be heard by a Constitution bench for authoritative pronouncement.

A bench of Chief Justice D Y Chandrachud and Justice P S Narasimha posted the matter on April 11 for considering the issue of reference to the five-judge bench.

Advocate Shadan Farasat, representing a petitioner, submitted one of the aspects in the matter deals with core of the finances of political parties and this issue requires an authoritative pronouncement.

He said the court may consider this matter to be considered by a Constitution bench, in view of the questions framed for the consideration of the court.

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Senior advocate Dushyant Dave, appearing for Association for Democratic Reforms, also one of the petitioners, said, “We will only benefit, if it is a constitution bench. It will not harm anybody. Yes, this issue goes to the core of our democratic existence. Rs 12,000 crore till now and the largest party gets more than two-third”.

He also referred to the ensuing Karnataka Assembly elections in which another tranche of electoral bonds would be open for sale.

The bench asked the Centre’s counsel, whether she is ready to argue on the aspect of referring the matter to a constitution bench.

The counsel said that the Attorney General R Venkataramani, who was not present in the courtroom during the hearing, would have to argue whether a reference should be made to the Constitution bench or not.

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On October 14, 2022, the Centre had told the Supreme Court that the electoral bonds scheme is an absolutely transparent mode of political funding and there was no possibility of black money in it.

NGO Association for Democratic Reforms (ADR) and others have challenged the validity of the Centre’s electoral bonds scheme introduced on January 2, 2018 as a source of political funding for being opaque.

On March 27, 2021, the apex court, by an order, had rejected the charge that the scheme was totally opaque. The apprehension that foreign corporate houses may buy the bonds and attempt to influence the electoral process in the country, was "misconceived", it had said.

It held that under Clause 3 of the Scheme, the Bonds may be purchased only by a person, who is a citizen of India or a company incorporated or established here. It also noted the purchase as well as encashment of the bonds, happening only through banking channels, is always reflected in documents that eventually come to the public domain.