SC held that Electoral Bond Scheme is unconstitutional and struck it down.

The Apex Court’s judgment is a landmark decision that promotes transparency in political funding and hinders the influence of money in politics. The Court's decision is a victory for the people of India and will help to ensure that the country's elections are free and fair. The Court held that the Scheme violates the right to information under Article 19(1)(a) of the Constitution of India. The Court also held that the Scheme is not necessary to achieve the stated objectives of the government and that it does not adequately protect the right to informational privacy of political affiliation.

The Court's judgment is based on the following key findings: • The Electoral Bond Scheme is not necessary to achieve the stated objectives of the government. The government has not provided any evidence to show that the Scheme is necessary to prevent corruption or to increase transparency in political funding. • The Scheme does not adequately protect the right to informational privacy of political affiliation. The Scheme allows donors to make anonymous contributions to political parties, which makes it difficult for voters to know who is funding the parties they are voting for. • The Scheme violates the right to information under Article 19(1)(a) of the Constitution of India. The right to information is essential for a functioning democracy. Voters have a right to know who is funding the parties they are voting for in order to make informed decisions about who to vote for.

The Electoral Bond Scheme has been a source of corruption and has made it difficult for voters to know who is funding the parties they are voting for. The Court's decision will help to ensure that the country's elections are free and fair and that the people of India have a right to know who is funding the parties they are voting for.

History: The Electoral Bond Scheme was introduced by the Government of India in 2018 to regulate the funding of political parties in India. Although, on the face it says that the funding will be regulated, the EB scheme allowed individuals, entities, companies, and corporations to purchase electoral bonds from specified banks, which could then be donated to political parties. It is crucial to note that the Electoral Bonds donated to the political parties did neither require them to disclose the source of the funds, nor the donor's information. Key features of the Electoral Bond Scheme (Before it was struck down): • The bonds were bearer instruments, which meant that they could be transferred without endorsement. • The bonds were available in denominations of Rs. 1,000, Rs. 10,000, Rs. 1,00,000, Rs. 10,00,000, and Rs. 1,00,00,000. (which was way higher denominations than the denominations available as fiat currency) • The bonds were valid for fifteen days from the date of purchase. • The bonds could be purchased from specified banks. • The bonds could be donated to any political party registered with the Election Commission of India. (without having to disclose the donor’s details) • The political parties could encash the bonds through their bank accounts. (without having to disclose the donor’s details).

In conclusion, The Hon'ble Apex Court directed the Election Commission of India to disclose full particular details of the donor of such ECI and also to disclose the amount so donated to the particular political party through Electoral Bonds, and in holding the Electoral Bond as unconstitutional and striking it down, the Hon'ble Court ruled the following:

**“The ECI will ascertain the details from the political parties and the State Bank of India, which has issued the Bonds, and the bankers of the political parties and thereupon disclose the details and names of the donor/purchaser of the Bonds and the amounts donated to the political party. The said exercise would be completed as per the timelines fixed by the Hon’ble the Chief Justice;” ** **“Henceforth, as the Scheme has been declared unconstitutional, the issuance of fresh Bonds is prohibited”

“In case the Bonds issued (within the validity period) are with the donor/purchaser, the donor/purchaser may return them to the authorised bank for refund of the amount. In case the Bonds (within the validity period) are with the donee/political party, the donee/political party will return the Bonds to the issuing bank, which will then refund the amount to the donor/purchaser. On failure, the amount will be credited to the Prime Ministers Relief Fund.”