Electoral bonds: Supreme Court referred the matter to the Constitution bench

The Supreme Court of India on Monday decided to refer the challenge to the controversial Electoral Bonds scheme to a Constitution Bench of the Court. The decision to refer the matter to the Constitution Bench consisting of at least five judges was announced this morning by Chief Justice of India DY Chandrachud.

“In view of the importance of issue raised, and with regard to Article 145(4) of the Constitution of India, the matter be placed before a bench of at least five judges. The matter will be retained on October 30, 2023,” he said. When the matter was heard last time on October 10, the Court had said that the matter would be listed for final hearing on October 31 this year.

During that hearing too, the Court had debated whether to refer the matter to Constitution bench but seemed to have decided against it given the urgency of the case.

But it eventually decided to refer it to a Constitution Bench in view if the legal issue involved relating to passage of laws as money bill.

Advocate Shadan Farasat appeared for the petitioner and prayed that the final hearing date of October 31 be retained to which the Court agreed.

An electoral bond is an instrument in the nature of a promissory note or bearer bond which can be purchased by any individual, company, firm or association of persons provided the person or body is a citizen of India or incorporated or established in India.

The bonds, which are in multiple denominations, are issued specifically for the purpose of contributing funds to political parties in its existing scheme.

Electoral bonds were introduced through the Finance Act, 2017, which in turn amended three other statutes – the RBI Act, the Income Tax Act and the Representation of People Act – to enable the introduction of such bonds.