38.6c New Delhi, India, Tuesday, June 18, 2024
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

women-including-housewife-approach-ncw-against-controversial-ips-officer-gyaneshwar-singh
Trending Crime, Police And Law
Women, including housewife, approach NCW against controversial IPS officer Gyaneshwar Singh

Two women approach NCW against controversial IPS officer Gyaneshwar Singh, citing harassment for tweets based on news reports about his involvement in high-profile cases.

17 June, 2024 03:10 PM
courts-this-week-law-street-journal-s-weekly-round-up-of-sc-anf-hcs-june-10-june-15
Trending Judiciary
Courts this Week: Law Street Journal's Weekly Round-Up of SC & HCs [June 10 - June 15]

Get the latest updates from the Supreme Court of India and the High Courts ! Here’s a round up of the week's top legal stories in a quick, easy-to-read summary.

17 June, 2024 03:29 PM

TOP STORIES

bjp-workers-stabbed-near-village-masjid-for-celebrating-pm-narendra-modis-victory-by-raising-bharat-mata-ki-jai-slogan
Trending Crime, Police And Law
BJP workers stabbed near village Masjid, for celebrating PM Narendra Modi's victory by raising 'Bharat Mata ki Jai slogan'

BJP workers stabbed near village Masjid in Karnataka for celebrating Narendra Modi's third term as PM.

12 June, 2024 12:11 PM
meghwal-assumes-charge-as-minister-of-state-ind-in-law-and-justice-ministry
Trending Executive
Meghwal assumes charge as Minister of State (Ind) in Law & Justice Ministry

Arjun Ram Meghwal assumes charge as Minister of State (Independent Charge) for Law & Justice, focusing on speedy justice and awareness of new criminal laws.

12 June, 2024 12:39 PM
allahabad-high-court-quashes-fir-grants-protection-to-adult-couple-who-married-against-familys-wishes
Trending Judiciary
Allahabad High Court quashes FIR, grants protection to adult couple who married against family’s wishes [Read Order]

Allahabad High Court quashes FIR, protects couple who married against family’s wishes, emphasizing their constitutional rights and condemning threats to their lives.

12 June, 2024 02:00 PM
inform-on-action-taken-against-tanker-mafia-sc-asks-delhi-govt-on-water-crisis
Trending Judiciary
'Inform on action taken against tanker mafia,' SC asks Delhi govt on water crisis

SC demands Delhi govt to explain action against tanker mafia amid water crisis, heatwave in the capital. Affidavit required on measures taken by June 13.

12 June, 2024 03:52 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email