SC Strikes Down Electoral Bonds Scheme | 15 Feb 2024

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 6^th March, 2024.