Supreme Court on Electoral Bonds: “Selective Anonymity, Not Confidential”

Supreme Court on Electoral Bonds: "Selective Anonymity, Not Confidential"

VoM News Desk | November 1, 2023 | 04:29 PM IST | Courts & Law | Follow on Google News

Supreme Court on Electoral Bonds: “Selective Anonymity, Not Confidential”

Supreme Court on Electoral Bonds: “Selective Anonymity, Not Confidential”

The Supreme Court, during its hearing on the legal validity of electoral bonds, noted that the current scheme provides “selective anonymity, not confidentiality” since purchase records are accessible by investigative agencies. The government argued that anonymous donations are necessary to protect donors from potential victimization or retribution if their preferred party loses. The court expressed concerns about the scheme’s transparency and its potential impact on the political funding system. While recognizing the goal of reducing cash-based funding in politics, the court questioned whether the scheme’s means are proportional. The government emphasized the need for confidentiality to prevent victimization and incentivize non-cash payments. The court also highlighted the issues of selective confidentiality and how those in power could access donor data.

Petitioners’ Arguments

The petitioners argued that the electoral bonds create an artificial distinction between honest bank transfers and anonymous donations. They contended that this distinction lacks a reasonable difference between the forms of each donation. Senior advocate Vijay Hansaria outlined changes to the Companies Act related to corporate donations and highlighted the provisions that capped, banned, and regulated corporate contributions over the years.

Background on Electoral Bonds

Electoral bonds were introduced in 2018 to provide transparency in political funding by allowing any Indian citizen or domestically-incorporated entity to purchase them. However, only political parties with more than one percent of votes polled in the last Lok Sabha or state election can receive these bonds.

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