38.6c New Delhi, India, Thursday, August 28, 2025
Top Stories Supreme Court
Political NEWS Legislative Corner Celebstreet International Videos
Subscribe Contact Us
close
Judiciary

Supreme Court Refuses To Issue Immediate Stay Against Electoral Bonds

By LawStreet News Network      20 January, 2020 04:01 PM      0 Comments
Supreme Court Refuses To Issue Immediate Stay Against Electoral Bonds

As Delhi polls are approaching, the Supreme Court of India directed the Election Commission of India today (January 20, 2020) to give reply on electoral bonds within two weeks but refused to give a stay order against the bonds. 

The decision was given by the bench comprising the Chief Justice of India, S.A. Bobde, Justice B.R. Gavai and Justice Surya Kant. The application was filed by the Association of Democratic Reforms (ADR) for seeking a stay on the bonds before the decision about the validity of those bonds came from the Apex Court.

These bonds were introduced in 2017 by making amendments in Reserve Bank of India Act, 1934, Companies Act, 2013, Income Tax Act, 1961, Representation of Peoples Act, 1950 and Foreign Contributions Regulations Act, 2010 through Financial Act, 2017. These amendments made electoral bonds absolutely anonymous as they made it transferable like currency so tracing back the original owner became nearly impossible. The amendments also took away the restriction that the companies can only make a contribution of 7.5% of net average profit of 3 preceding financial years which also enables the newly formed companies to make the contribution. ECI observed that "This opens up the possibility of shell companies being set up for the sole purpose of making donations to political parties, with no other business consequence of having disbursable profits."

A bench headed by Justice S.A. Bobde gave this decision by saying that "A stay was not given by this court before. So we may not do it now". But Advocate Prashant Bhushan convinced the bench to move the ultimatum from four weeks to two weeks by arguing that the delhi polls are scheduled for 8th February, 2020 and by that time the ruling party would have already received a huge amount of funds through the bonds.

Advocate Bhushan argued that "Alarming facts have to light...the scheme, which was meant only for the Lok Sabha polls, is being illegally opened before state elections also for 1000s of crores of illicit funds to come into the ruling party's pocket...the RBI and the ECI have cautioned against this inflow of black money...the ruling party has done so before every state election..."

He also convinced the bench for the reduction of ultimatum by saying that "By that time, they will have got crores of funds illegally, without any regulation of the donors. Elections take place in Delhi in February! Parties will get undue advantages! This scheme is prima facie illegal and until its validity is finally decided, it should be stayed!...take a look at the RBI's letter. The government has received kick-backs!"

The ADR also mentioned the warning given by the former RBI Governor Urjit Patel to then Finance Minister Arun Jaitley stating that "issue of EBs as bearer instruments in the manner currently contemplated has the possibility of misuse more particularly through use of shell companies."

The decision about the validity of these bonds is still pending and  will soon be decided by the Supreme Court.

Author- Aditi Dubey



Share this article:

User Avatar
About:


Leave a feedback about this
TRENDING NEWS

cant-projects-judges-as-political-actors-ex-cjis-former-judges-rebut-statement
Trending Executive
'Can't projects judges as political actors,' ex CJIs, former judges rebut statement by ex judges on statement of Amit Shah [Read Statement]

56 former judges, including ex-CJIs Sathasivam & Gogoi, rebut peers’ statement on Amit Shah, stressing judiciary must stay above politics.

27 August, 2025 06:46 PM

TOP STORIES

if-governor-does-not-declare-on-withholding-assent-for-time-immemorial-court-still-powerless-sc-poser-to-centre
Trending Judiciary
If Governor does not declare on withholding assent for time immemorial, court still powerless, SC poser to Centre

SC asks if Governor can withhold assent to Bills indefinitely, raising concern that legislature may be rendered defunct without judicial remedy.

22 August, 2025 12:41 PM
sc-widens-scope-of-suo-motu-hearing-on-stray-dogs-menace-suspends-previous-order-against-relocation
Trending Judiciary
SC widens scope of suo motu hearing on stray dogs menace; suspends previous order against relocation

SC expands stray dogs case to pan-India, suspends earlier relocation order; allows release after vaccination, bans unregulated feeding.

22 August, 2025 01:06 PM
sc-women-lawyers-body-condemns-sexist-remarks-by-justice-katju-seeks-apology
Trending Judiciary
SC women lawyers' body condemns 'sexist' remarks by Justice Katju; seeks apology [Read Press Release]

SC Women Lawyers Association condemns Justice Katju’s ‘sexist’ remarks, demands public apology; calls comments an assault on dignity of women lawyers.

22 August, 2025 03:49 PM
sc-orders-status-quo-on-sambhal-mosque
Trending Judiciary
SC orders status quo on Sambhal mosque

SC orders status quo on Sambhal mosque till Aug 25; seeks Hindu petitioners’ reply on plea against survey of Mughal-era masjid under dispute.

22 August, 2025 06:22 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email