Major takeaways: Why Supreme Court ends Electoral Bonds scheme

A bench of five judges headed by the Chief Justice of India DY Chandrachud, Justices Sanjiv Khanna, BR Gavai, JB Pardiwala and Manoj Misra on Thursday struck down the electoral bonds scheme which had been brought in 2018 as an alternative to cash donations made to political parties to bring transparency in political funding. The Supreme Court bench delivered two separate but unanimous verdicts on pleas challenging the scheme.

At the beginning of the announcement for the judgement, CJI Chandrachud said there are two opinions, one by himself and another by Justice Sanjiv Khanna and both arrive at same conclusion.

While announcing the verdict the bench said that the petitions raised two main issues; whether amendments are violative of right to information under Article 19(1)(a) and whether unlimited corporate funding violated free and fair elections.

Here are major take aways during from the announcement:

• Supreme Court holds Electoral Bonds scheme is violative of Article 19(1)(a) and unconstitutional. 
• It violates the fundamental right to information of citizens to know about who is contributing money to political parties. 
• The top court has also struck down the unlimited contribution being made by companies to political parties.
• Supreme Court orders that banks to forthwith stop issuing Electoral Bonds.
• Supreme Court orders that SBI shall furnish the details of Electoral Bonds encashed by the political parties.
• The apex court said that by March 13, the ECI shall publish the details of Electoral Bonds on its official website.
• Electoral Bonds scheme cannot be justified by saying that it will help curb black money in politics.
• It further ordered that Electoral Bonds which are within the validity period of 15 days but which have not been encashed by the political parties yet shall be returned by the political party to the purchaser. The issuing bank shall then refund the amount to the purchaser's account, it ordered.

It is to be noted here that a five-judge Constitution bench headed by Chief Justice Chandrachud reserved its verdict in the matter last year on November 2. The scheme was pitched by the government in January 2018 as an alternative to cash donations made to political parties as part of efforts to bring in transparency in political funding.