Supreme Court dismissed SBI's Miscellaneous Application seeking an extension of time for complying with the court's directions in Land Mark Electoral Bond Judgement.

The Supreme Court of India, in a groundbreaking judgment,[https://caseguru.in/post/sc-held-that-electoral-bond-scheme-is-unconstitutional-and-struck-it-down] declared the Electoral Bond Scheme and the provisions of the Finance Act 2017 unconstitutional on the grounds that non-disclosure of political party funding violates citizens' right to information under Article 19(1)(a) of the Constitution. The court also held that unlimited funding of political parties by corporate entities, permitted by the amendments to the Companies Act 2013, is arbitrary and violates Article 14 of the Constitution.

Key Findings and Directives:

The court directed the State Bank of India (SBI), which is the authorized bank for Electoral Bonds, to submit detailed information on all Electoral Bonds purchased and redeemed between 12 April 2019 and 15 February 2024 to the Election Commission of India (ECI) by 6 March 2024.
The SBI was also directed to submit details of political parties that have received funding through Electoral Bonds, including the date and amount of each contribution.
The ECI was instructed to collate the information from the SBI and publish it on its website by 13 March 2024.

Significance of Disclosure:

The court emphasized that transparency in political funding is crucial for the integrity of the electoral process and the public's right to know how political parties are funded. The non-disclosure of such information violates citizens' fundamental rights and undermines the ability of the public to hold parties accountable.

Remedial Actions:

To give full effect to the judgment, the court ordered the SBI to immediately stop issuing Electoral Bonds and return any unredeemed bonds within fifteen days. The ECI was directed to publish the information on its website within one week of receipt from the SBI.

Impact on Political Funding:

The court's ruling is expected to have a significant impact on the funding of political parties in India. It is likely to reduce the influence of corporate entities and increase transparency in the electoral process.

Enforcement and Compliance:

The State Bank of India filed an Miscellaneous Application in the Supreme Court vide Application No.486 of 2024 seeking an extension of time for complying with the court's directions.

The SBI's primary reason for seeking an extension of time was:

State Bank of India sought an extension, arguing that matching donor information with redemption data would be complex and time-consuming. After reviewing the scheme's protocols, the Court rejected the request, finding that the required information was readily available.
The complexity and time-consuming nature of the matching process: The SBI argued that the information on bond purchases and redemptions was maintained in two separate "silos" and that matching the donor and bond details to the corresponding details of encashment by political parties was a complex and time-consuming exercise.

Additional reasons included:

The information on bond purchases was not maintained in a digital format, requiring manual processing. The large number of data sets (22,217 bond purchases and 44,434 data sets in total) added to the time required for compilation.

However, the court dismissed the application the Supreme Court of India directed the SBI to disclose the details by the close of business hours on 12 March 2024. The court also cautioned the SBI of potential contempt proceedings if it fails to comply with the directives and held *"16. The SBI shall file an affidavit of its Chairman and Managing Director upon compliance with the directions which have been issued above. We are not inclined to exercise the contempt jurisdiction at this stage bearing in mind the application which was submitted for extension of time. However, we place SBI on notice that this Court will be inclined to proceed against it for willful disobedience of the judgment if SBI does not comply with the directions of this Court as set out in its judgment dated 15 February 2024 by the timelines indicated in this order."

Miscellaneous Application No 486 of 2024 In Writ Petition (Civil) No 880 of 2017
CORAM :
HON'BLE THE CHIEF JUSTICE
HON'BLE MR. JUSTICE SANJIV KHANNA
HON'BLE MR. JUSTICE B.R. GAVAI
HON'BLE MR. JUSTICE J.B. PARDIWALA
HON'BLE MR. JUSTICE MANOJ MISRA
Dated:11-03-2024
https://main.sci.gov.in/supremecourt/2024/10382/103822024130151365Judgement11-Mar-2024.pdf