• What are Electoral Bonds?
    • Electoral Bonds are a type of instrument introduced by the government to enable companies and individuals to donate money to political parties anonymously.
  • Supreme Court’s Decision
    • First, the court said that everyone should have the right to know who is giving money to political parties. With these bonds, that information is kept secret, and that’s not fair.
    • Second, the court said that these bonds could be used for unfair deals. For example, a company could give money to a party, and in return, that party might do favors for the company. That’s not fair either.
    • Lastly, the court said that when companies can give unlimited money secretly, it’s not fair for elections. It might make it so that only big companies have a say in how things are decided, and that’s not what democracy is about.
  • Government’s Purpose:
    • Initially, the government introduced Electoral Bonds with the intention of making political funding more transparent and legal. They aimed to curb the use of illegal or unaccounted money in politics.
  • Reasons Behind the Court’s Decision:
    • Transparency Concerns: The court pointed out that transparency is essential in political funding. With Electoral Bonds, the identity of the donors remains undisclosed, which means the public doesn’t know who is financially supporting which party.
    • Potential for Corruption: Another concern raised by the court is the possibility of quid pro quo arrangements. In other words, companies might expect favors in return for their donations, which could lead to corruption and unfair advantages.
    • Threat to Democratic Principles: Allowing unlimited anonymous donations from corporations could skew the political landscape in favor of big businesses. This could undermine the democratic ideals of equality and fair representation.
  • Impact of the Ruling:
    • The Supreme Court’s decision means that Electoral Bonds are no longer considered valid for political donations. This ruling aims to ensure transparency and fairness in the funding of political parties.
    • Transparency is crucial in a democracy to maintain public trust and accountability. By knowing who funds political parties, citizens can make informed decisions during elections, and the electoral process remains fair and unbiased.