In a groundbreaking verdict, the Supreme Court has shattered the veil of anonymity cloaking electoral bonds, emphasizing that while curbing black money remains paramount, there exist avenues less restrictive than the controversial bonds.
The apex court, through a Constitution Bench, underscored that the shield of anonymity cast upon donors under the electoral bonds scheme encroaches upon the fundamental right to information enshrined under Article 19(1)(a) of the Constitution, deeming it unconstitutional.
Despite the Union Government’s defense, arguing that electoral bonds streamline contributions via banking channels, Chief Justice DY Chandrachud’s authored judgment deemed the objective of curbing black money insufficient to justify anonymity, a sentiment echoed by the Court.
Delving into the intricacies, the Court scrutinized the fiscal landscape preceding the introduction of electoral bonds in 2016-17, revealing that a staggering 81% of contributions totaling Rs 580.52 crores flowed into political coffers through unregulated voluntary donations, fostering a breeding ground for black money. However, the subsequent adoption of electoral bonds saw a regulated influx, constituting 47% of contributions.
Nevertheless, the Court asserted that the electoral bonds scheme falls short of meeting the litmus test of proportionality, highlighting the existence of alternative avenues that strike a delicate balance between curbing black money and upholding the right to information.
Chief Justice Chandrachud, in his sagacious decree, articulated, “The Electoral Bonds scheme is not the sole antidote to the menace of black money in electoral financing. There exist alternative pathways that achieve the same end while minimally impinging upon the right to information.”
For contributions below Rs 20,000, the Court heralded electronic means as the least restrictive option, while for amounts exceeding this threshold, contributions through electoral trusts emerged as a viable alternative, boasting a lesser encroachment upon the right to information.
In a resounding declaration, the Court underscored the disproportionate infringement upon the right to information vis-à-vis the objective of curbing black money, rendering the electoral bonds scheme untenable.
Justices Sanjiv Khanna, BR Gavai, JB Pardiwala, and Manoj Misra, serving alongside Chief Justice Chandrachud, constituted the learned members of the bench steering this landmark verdict into fruition.
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