The Supreme Court has directed that the case pertaining to the challenge made to controversial electoral bonds scheme to be listed on April 11.
The case would be listed to examine its merits and whether it should be heard by a Constitution bench.
A bench comprising Chief Justice of India DY Chandrachud and Justice PS Narasimha has given direction after the counsel for petitioner said that the matter is of Constitutional importance and could impact democratic polity in the country.
Advocate Farasat said that this is an issue which impacts the democratic polity and funding of political parties.. This case should be heard by a constitution bench since this deserves an authoritative pronouncement by the court.
The Apex Court replied that they will hear it on April 11, 2023 to see if it should be referred to the Constitution bench.
An electoral bond is an instrument in the nature of a promissory note or bearer bond which can be purchased by any individual, company, firm or association of persons provided the person or body is a citizen of India or incorporated or established in India.
The bonds are issued specifically for the purpose of contributing funds to political parties in its existing scheme in the country.
The term electoral bond was introduced through the Finance Act 2017, which has amended three other statutes – the RBI Act, the Income Tax Act and the Representation of People Act, for enabling the introduction of such bonds.
This act was passed as a money bill, which meant that it did not require the assent of the Rajya Sabha.
Several petitions have been filed in the Supreme Court, challenging at least five amendments made to different statutes through the Finance Act, 2016 and its 2017 amendment on the ground that they have opened doors to unlimited and unchecked funding of political parties.
During the hearing, the Senior Advocate Dushyant Dave said that it is a very important case and should be heard at the earliest.
The Central government however asked for more time to file a composite reply.
Advocate Dushyant Dave said that we are going to wait for the Karnataka elections now so that another tranche of electoral bonds are issued.
The bench then said that it will list the matter on May 2 for final disposal.
Advocate Farasat then said that the matter needs to be considered by a Constitution bench.
The bench then proceeded to list the case for April 11.