The Supreme Court’s three-judge bench, comprising Chief Justice of India D.Y. Chandrachud and Justices J.B. Pardiwala and Manoj Misra, directed the listing of the batch of petitions challenging the validity of the electoral bonds scheme for October 31.
About Electoral Bond Scheme
In 2017, the Electoral Bonds Scheme was introduced through a Finance bill, and it was put into effect in 2018. This system enables individuals and groups to contribute to registered political parties while keeping their identities confidential. It serves as a way to maintain donor anonymity while making donations.
- The Electoral Bonds will be in the form of Promissory Note and Bearer in nature which will not carry the name of the buyer or payee.
- The Electoral Bonds are available in five denominations - Rs. 1,000, Rs. 10,000, Rs. 1,00,000, Rs. 10,00,000, and Rs. 1,00,00,000.
- The validity period of the Electoral Bonds is 15 calendar days from the date of issuance. If the Electoral Bond is deposited at the Authorised SBI Branches after the validity period expires, no payment will be made to any payee Political Party.
- The issuing branch will provide the requisite Electoral Bonds to the applicant if all the requirements are fulfilled.
- The information provided by the purchaser will be confidentially treated by the State Bank of India and will not be disclosed to any authority except when demanded by a Competent Court or upon registration of Criminal Case by any Law Enforcement Agency.
- An application that is Non-KYC compliant or does not meet the requirements such as citizenship, KYC norms, etc. will be rejected. The Electoral Bonds will be issued to the purchaser on a non-refundable basis.
- The Electoral Bonds can be purchased for ten days in each quarter as advised by GOI. An additional period of thirty days will be specified by GOI in the year of General Elections to the House of People.
- No interest will be paid on these Bonds and they are not tradable on any Stock Exchange. No loan can be extended against the security of these Bonds.