The Supreme Court has struck down Modi government’s electoral bond scheme, saying citizens have the right to information about the funding of political parties. Infringement of such right to information under the constitution is not justified.

The constitutional bench headed by chief justice D Y Chandrachud held that provisions in income tax act and representation of people’s act to accommodate electoral bonds scheme were unconstitutional.

The CJI said the fundamental right to privacy includes a citizen’s right to political privacy and political affiliation. Information about a citizens political affiliation can lead to subjecting a citizen to curbs or subjecting them to trolls. It can be used to disenfranchise voters through voter surveillance.

The court also struck down the amendment to companies Act to facilitate issue of electoral bonds as unconstitutional and ordered the issuing bank to forthwith stop the issue of the bonds

Before amendment, loss making companies were not able to contribute. The court pointed out that the amendment does not recognize the harm of allowing loss-making companies to contribute due to quid pro quo. The amendment to Section 182 Companies Act is manifestly arbitrary for not making distincition between loss making and profit making companies.

“Financial contribution to political parties are generally for support to party or for quid pro quo.. Law as of now allows it by corporations and individuals… When the law permits political contributions, showing political support, it is duty of constitution to protect them. Some contribution is also for not major parties and it is generally to show support,” the CJI said.

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