Rapid Fire
SC Strikes Down Electoral Bonds Scheme
- 15 Feb 2024
- 1 min read
Recently, the Supreme Court(SC) struck down the electoral bonds scheme that allows anonymous donations to political parties, citing it as unconstitutional.
- SC asserted that transparency regarding funding to political parties is crucial for informed electoral decisions, affirming that the scheme infringes upon the right to information as enshrined in Article 19(1)(a).
- Electoral bonds are money instruments that act as promissory notes or bearer bonds that can be purchased by individuals or companies in India.
- They are issued specifically for the contribution of funds to the political parties.
- The SBI is the only bank authorized to issue and encash electoral bonds.
- The donations made under this scheme enjoyed 100% tax exemption.
- SC has directed the State Bank of India to stop issuing electoral bonds immediately and submit all the details to the Election Commission by 6th March, 2024.
Read more: Electoral Bonds
