Electoral bonds: Citizens don't have right to know source of funding, govt tells SC

Attorney General R. Venkataramani expressed his perspective to the Supreme Court on Sunday regarding the challenges to the "opaque" electoral bond system for funding political parties. He emphasized that the Constitution does not grant citizens a fundamental right to know the funding sources, urging the Court not to venture into policy matters related to regulating electoral bonds.

According to the notification, electoral bonds shall be encashed by an eligible political party only through an account with an authorised bank.

Ahead of the October 31 hearing before a five-judge bench led by Chief Justice D. Y. Chandrachud, Venkataramani argued that the electoral bond scheme doesn't infringe on existing rights and cannot be deemed contrary to any constitutional provisions. He asserted that a law lacking such contradiction cannot be invalidated for other reasons.


"The scheme in question extends the benefit of confidentiality to the contributor. It ensures and promotes clean money being contributed. It ensures abiding by tax obligations. Thus, it does not fall foul of any existing right," the AG told the apex court.

Venkataramani clarified that judicial review isn't about critiquing state policies to propose alternative solutions. He referred to the Supreme Court's 2003 judgment in the People's Union for Civil Liberties case, highlighting that the right to know a candidate's criminal history, crucial for informed voting, differs from the current case's context.

According to the Attorney General, the electoral bond scheme upholds contributor confidentiality, promotes clean contributions, and ensures compliance with tax obligations without violating any existing rights. He stressed that the right to know everything for undefined purposes doesn't exist.

He advised the Supreme Court to consider the parliamentary debates on the matter, emphasizing that even when the court identifies a new aspect as part of a right, the subject's review or testing should be left to public and parliamentary discussions, aligning with the separation of powers. Venkataramani suggested that the contribution to political parties is a democratic issue suitable for political debate and governance accountability, but this doesn't warrant the court's interference unless there is a clear violation of constitutional principles.

According to the provisions of the scheme, electoral bonds may be purchased by any citizen of India or entity incorporated or established in India. An individual can buy electoral bonds, either singly or jointly with other individuals.

With inputs from PTI