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ABSTRACT 

Electoral bond scheme was introduced by the Central government in the year 2018 and the aim of the scheme was to cleanse the political funding in India. So electoral bonds are like promissory note which can be bought by individuals and companies in India from the State Bank of India (SBI) and donated to a political party, which can encash these bonds. Special benefits were added in the scheme in which the donor’s identity should not be disclosed by the government. The noble cause was passed in the parliament to fulfil the ulterior motive of the ruling party. Through an amendment to the Finance Act 2017, the Union government had exempted political parties from disclosing donations received through electoral bonds.

The anonymity of this scheme was against the basic structure of the Indian constitution because it challenges Article 19(1)(a) right to information of the Constitution. The Supreme Court also agreed with the contentions of the petitioners that since the purpose of curbing black money cannot be traced to any of the reasonable restrictions elucidated under Article 19(2), it cannot be considered a legitimate purpose for restricting the fundamental right to information. The Supreme Court in a unanimous verdict, upheld every challenge to every aspect in the electoral bonds case, declaring the scheme unconstitutional.

It ordered the SBI to stop issuing electoral bonds immediately and to submit all information regarding the bonds sold, the names of all the donors and recipients to the Election Commission of India (ECI) and made ultra-virus to the Indian Constitution because it challenges Article 14, 19 and 21.

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