Supreme Court Mandates Full Transparency in Electoral Bonds

SBI Ordered to Reveal Complete Electoral Bond Details to Election Commission

MOHAN KHOUND

In a landmark decision, the Supreme Court of India has mandated the State Bank of India (SBI) to fully disclose all details pertaining to electoral bonds, including their unique hidden alphanumeric and serial numbers, to the Election Commission of India (ECI).

The ruling, aimed at fostering transparency in political funding, underscores the court’s unwavering commitment to upholding the integrity of the electoral process.

The directive came on Monday as the apex court instructed the SBI to be “candid and fair” and to avoid a selective approach in revealing information about the electoral bonds. Chief Justice of India D.Y. Chandrachud, leading a five-judge bench, firmly addressed the SBI, represented by senior advocate Harish Salve, emphasizing the need for comprehensive disclosure.

“The State Bank of India was expected to provide every conceivable detail it holds regarding the electoral bonds. Your attitude seems to be ‘you tell us to give the details, then we will give’. SBI should not be selective. SBI has to be candid and fair to the court,” Chief Justice Chandrachud stated.

The Supreme Court specified that the information on electoral bonds submitted to the ECI should include all purchase details as well as the receipt of contributions to political parties under the scheme. SBI Chairman Dinesh Kumar Khara has been ordered to submit an affidavit by 5 p.m. on Thursday, affirming that the bank has disclosed all pertinent details and has not withheld any information from disclosure.

The ECI is expected to upload the disclosed information immediately upon receipt from the SBI. This decision reinforces the Supreme Court’s earlier judgment on February 15, 2024, which struck down the anonymous political funding scheme and called for data on poll bonds purchased and redeemed from April 12, 2019, until the verdict date.

Rejecting an application by the NGO Citizens Rights Trust, the court declined to require a similar disclosure of electoral bonds bought and cashed from March 1, 2018, to April 12, 2019. The NGO claimed that during this period, political parties received 9,159 bonds worth ₹4,000 crore.

The Bench clarified that its judgment had “specifically” directed the submission of data from April 12, 2019, and that any change now would amount to a “substantial modification” of the February 15 verdict.

The Supreme Court had made a deliberate decision to set the cut-off date as April 12, 2019, as that was when stakeholders were first put on notice to provide information through an interim order. On March 15, the Supreme Court had issued a notice to SBI, questioning why it had not shared the alphanumeric numbers of the electoral bonds with the ECI for publication.

The disclosure of these unique numbers is necessary to give “logical and complete effect to the ruling,” the court emphasized. The details to be shared, such as the date of purchase, the amount, names of purchasers, and political parties that redeemed the bonds, are considered illustrative and not exhaustive, with the intent that the bank should not withhold any information from the ECI.

During the hearing, Mr. Salve assured the court that the SBI had no reservations about disclosing all details concerning the poll bonds. “We are a public institution. The impression created outside is that the SBI is playing ducks and drakes with the Supreme Court,” Mr. Salve stated.

Chief Justice Chandrachud inquired about the purpose of the alphanumeric numbers, whether they served solely as a security feature or also facilitated an audit trail. The court probed how the redeeming branch utilized these numbers, questioning whether they were used to verify the authenticity of the bonds.

Mr. Salve explained that the number strip was checked under ultraviolet light. Meanwhile, Solicitor General Tushar Mehta, representing the Centre, drew attention to the distortion of facts and numbers and the “witch-hunting” that ensued following the judgment and publication of electoral bonds’ data. “A barrage of social media posts intended to cause embarrassment has started. Statistics are twisted in every manner possible…” Mr. Mehta observed.

Chief Justice Chandrachud concluded by reiterating that the court’s duty ended with the pronouncement of the judgment. “Our intent was disclosure. We are governed by the rule of law,” he affirmed, signaling a new era of accountability in political financing in India.

18-03-2024

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