Electoral Bonds: Supreme Court Refuses To Set Up SIT To Investigate Quid Pro Quo Arrangements

The Supreme Court on Friday refused to set up a court-monitored Special Investigation Team to probe the possible quid pro quo arrangements arising out of the electoral bonds scheme.

The court said that it would be premature and inappropriate for it to intervene at this stage, as appropriate remedies under the ordinary course of action have not yet been used.

"Intervention by this court at the present stage will postulate that the remedies available under the present system are not efficacious," the top court said.

The court observed that other reliefs, including the direction to the authorities to make recoveries from political parties on the basis that the donations received by them are proceeds of crime or the re-opening of income tax assessments, hinge upon the statutory function of authorities under law to make enquiries in this regard.

The court has essentially stated that the law governing criminal procedure and the writ jurisdiction of various high courts would allow for recourse through appropriate remedies at the present stage.

Earlier this year, the top court, in a unanimous five-judge bench verdict, struck down the electoral bonds scheme as unconstitutional.

The court said that the electoral bond scheme violated the right to information and the right to freedom of speech and expression provided under Article 19(1)(a).

The top court observed that, at a primary level, political contributions grant access to legislators, which results in an apprehension that it could lead to a quid pro quo arrangement between the donor and the legislators.

Issuing a direction for disclosure of details pertaining to these bonds, the court directed the State Bank of India to prepare up-to-date data and details of political parties that have received these bonds and the purchasers of bonds who made the donation. This data was collated and published on the website of the Election Commission of India soon after the court's direction.

The electoral bonds scheme was introduced by the government in 2017 and was subsequently notified in 2018.

As per the scheme, any person who is a citizen of India or incorporated could have purchased these bonds and donated them in favour of any registered political party that has secured at least 1% of the votes polled in the last election to the Lok Sabha or the state legislative assembly.

These bonds were sold in denominations of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore, from authorised branches of the State Bank of India. Further, these bonds assured the complete anonymity of the donor.