Electoral bonds a transparent mode of political funding: Centre to SC

The Centre on Friday told the Supreme Court that the electoral bonds scheme is an absolutely transparent mode of political funding and there was no possibility of black money in it.

Representing the Union government, Solicitor General Tushar Mehta submitted before a bench of Justices B R Gavai and B V Nagarathna that the methodology of receiving money is transparent.

He said, "Nothing is black now, rather everything is transparent."

The bench asked Mehta if the system provided information where the money is coming from.

"Absolutely!," Mehta responded.

Also Read | Supreme Court to hear pleas against electoral bonds on December 6

In his submission, advocate Prashant Bhushan on behalf of an NGO said there were issues which affected the democracy, including the introduction of electoral bonds and bringing political parties under the RTI.

He also raised concern over use of foreign money.

Appearing for another petitioner, senior advocate Kapil Sibal submitted the matter could be heard by a larger bench, since it was an important issue.

The bench, however, said the case can't be referred to a larger unless there is conflict of views.

The petitioners also said the case should be heard as early as possible, as state elections are coming up.

Mehta said this was not an election related issue.

The bench posted the matter for hearing on December 6.

NGO Association for Democratic Reforms (ADR) and others have challenged the validity of the Centre’s electoral bonds scheme introduced on January 2, 2018 as a source of political funding for being opaque.

On March 27, 2021, the apex court, by an order, had rejected the charge that the scheme was totally opaque. The apprehension that foreign corporate houses may buy the bonds and attempt to influence the electoral process in the country, was "misconceived".

It held that under Clause 3 of the Scheme, the Bonds may be purchased only by a person, who is a citizen of India or a company incorporated or established here. It also noted the purchase as well as encashment of the bonds, happening only through banking channels, is always reflected in documents that eventually come to the public domain.