SC to examine pleas on electoral bond scheme today
- January 31, 2023
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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SC to examine pleas on electoral bond scheme today
Subject :Polity
Section : Elections
Context: The Supreme Court is going to examine whether petitions challenging the validity of electoral bonds scheme need to be referred to a Constitution Bench. The petitions, which have been in limbo for about eight years, allege that the scheme has opened the doors for anonymous donations to political parties days before polls are due.
Details:
- The petition has argued that amendments made via Finance Acts of 2016 and 2017, both passed as Money Bills, have through the electoral bonds scheme, “opened the floodgates to unlimited political donations”.
- The amendments have removed the caps on campaign donations by companies and have legalised anonymous donations.
- The Finance Act of 2017 has introduced the use of electoral bonds which are exempt from disclosure under the Representation of Peoples Act, 1951, opening doors to unchecked, unknown funding to political parties.
- The Finance Act, 2016 has also amended the Foreign Contribution Regulation Act (FCRA), 2010, to allow foreign companies with subsidiaries in India to fund political parties in India, effectively, exposing Indian politics and democracy to international lobbyists
- The Supreme Court is on January 31 scheduled to examine whether petitions challenging the validity of electoral bonds scheme need to be referred to a Constitution Bench.
- According to Department of Economic Affairs (DEA) electoral bonds were sold from March 2018 to December 2022 in 24 phases at a total cost of ₹10.23 crore to the taxpayer. The expenses include ₹8.33 crore in bank commission and ₹1.90 crore in printing charges. While Rs. 6.74 lakh electoral bonds were printed, bonds worth Rs. 11699.84 crore were sold,
- Also in focus in the apex court is a challenge to a recent government notification allowing the sale of electoral bonds for an additional 15 days during Assembly election years.