The Supreme Court ordered on Tuesday that the case challenging the controversial electoral bonds scheme be scheduled for hearing by a Constitution bench on April 11.
The direction was passed by a bench of Chief Justice of India DY Chandrachud and Justice PS Narasimha after the petitioner’s counsel stated that the matter is of Constitutional importance and could have an impact on the country’s democratic polity.
“This is a problem that affects the democratic polity and the funding of political parties. This case should be heard by a constitution bench because it deserves an authoritative ruling from the court,” Shadan Farasat, an advocate, stated.
“We will then hear it on April 11, 2023 to determine whether it should be referred to the Constitution bench,” the Supreme Court stated.
An electoral bond is an instrument in nature of a promissory note or bearer bond that can be purchased by any individual, company, firm, or association of persons who are citizens of India or are incorporated or established in India. The bonds, which come in a variety of denominations, are issued specifically for the purpose of contributing funds to political parties in the country’s existing scheme.
The 2017 Finance Act established a system of electoral bonds that could be issued by any scheduled bank for the purpose of electoral funding. The Finance Act was passed as a money bill, which meant it did not require Rajya Sabha’s approval.
Several petitions are pending before the Supreme Court challenging at least five amendments to various statutes made through the Finance Act 2017 on the grounds that they have opened the door to unlimited, unchecked funding of political parties.
The Supreme Court is also hearing a petition challenging a recent notification that extended the period for selling electoral bonds by 15 days during years when elections for State assemblies and Union Territories with legislatures were scheduled.
In its affidavit, the Central Government stated that the electoral bonds scheme is the most transparent. In March 2021, the Supreme Court denied a stay of execution on the scheme.
During the hearing on Tuesday, Senior Advocate Dushyant Dave argued that the case is critical and should be heard as soon as possible.
The central government requested more time to file a composite response.
“Are we going to wait until the Karnataka elections to issue another tranche of electoral bonds?” Dave inquired.
The bench then stated that the case will be listed for final disposition on May 2. Advocate Farasat then stated that the case should be heard by a Constitutional Court. The bench then scheduled the case for April 11.
