SC refuses to grant interim stay on the electoral bond scheme

The Supreme Court on Monday refused to grant an interim stay on the electoral bond scheme meant for funding political parties. The Apex Court sought response of the Centre and Election Commission on a plea seeking to stay the scheme.

A bench comprising Chief Justice S A Bobde and justices B R Gavai and Surya Kant asked the Centre and the Commission to file their responses within two weeks. An interim application was filed by NGO 'Association for Democratic Reforms' for staying the scheme.

Lawyer Prashant Bhushan, appearing for the NGO, alleged that the scheme is a means for channelising unaccounted black money in favour of the ruling party. He also referred to a document of the RBI while seeking the stay. To which, the bench said, 'We will see that. We are listing it for two weeks'.

Senior advocate Rakesh Dwivedi, appearing for the EC, said, all these arguments have already been advanced earlier. He sought four weeks' time to reply to the NGO's plea.

The Union Government opened the sale of electoral bonds for 10 days for the Delhi Assembly election. The government has notified the Electoral Bond Scheme on January 2, 2018.

What is an Electoral Bond?

As per provisions of the scheme, electoral bonds which are similar to a promissory note can be purchased by a person, who is a citizen of India or incorporated or established in India from select branches of State Bank of India. An individual can buy electoral bonds, either singly or jointly with other individuals and can donate it to any eligible party of his/her choice.

Who can receive these bonds?

Political parties registered under Section 9A of the Representation of the People Act, 1951 and which secured not less than one per cent of votes polled in the last general election to the House of the People or the Legislative Assembly of the State shall be eligible to receive electoral bonds. As per the notification, electoral bonds shall be enchased by an eligible political party only through a bank account with an authorised bank.

When was electoral bond introduced?

It was introduced with the Finance Bill 2017. It was notified on January 29, 2018, by the government in form of the Electoral Bond Scheme 2018.

When are the bonds available for purchase?

These electoral bonds are available for purchase during the first 10 days of every quarter, i.e. first 10-days of January, April, July and October. However, the government can announce an additional period of 30 days in the year when the Lok Sabha elections are scheduled to be held.