What Is Govt's Control On Use Of Money After Encashing Electoral Bonds? Supreme Court Asks
The Supreme Court on Wednesday expressed concerns about the possible misuse of electoral bonds by political parties, by diverting the funds to non-political activities including terrorism."What is the control of government on the money being used after encashing bonds?", the Chief Justice of India asked the Attorney General for India KK Venugopal.The bench comprising CJI SA Bobde, Justices...
The Supreme Court on Wednesday expressed concerns about the possible misuse of electoral bonds by political parties, by diverting the funds to non-political activities including terrorism.
"What is the control of government on the money being used after encashing bonds?", the Chief Justice of India asked the Attorney General for India KK Venugopal.
The bench comprising CJI SA Bobde, Justices AS Bopanna and V Ramasubramaniam was hearing an application filed by Association for Democratic Reforms seeking stay of the fresh release of electoral bonds ahead of the assembly polls in West Bengal, Tamil Nadu, Kerala, Assam and Puducherry.
During the hearing, the CJI expressed apprehension that political parties may use the funds secured by way of EBs for purposes other than political activities.
"There are political parties who do terrorism," the CJI said. He added, "This angle of possibility of funding of terrorism through funding needs to be examined. It is possible that funds through this mechanism are diverted by particular people for other purposes with an agenda…You can start a protest, with this funding. You can start many things."
The Solicitor General submitted that only political parties with at least 1% vote share can take EBs.
Unconvinced, the CJI remarked, "We are sure that there are parties who meet this criteria and have violence as an agenda."
He added, "We don't want to get into political arena and don't want to comment on any political party. Suppose, there is a party which wants to finance a protest, which has the potential of violence, can't they use bonds to fund it?"
Turning to the AG, the CJI asked whether the Government exercises control on the money being used after encashing the bonds.
"The bonds are valid only for 15 days. After that, it is paper," the AG said.
The AG added,
"Political parties have to file income tax returns. Except the CPI(M) and another party, no other national parties filed the returns. Case came to Supreme Court. Supreme Court condemned the parties and directed them to file returns.
Even the Congress party did not file. It was after Supreme Court judgment that all started filing. So now question of such misuse cannot arise. They have to file returns."
The bench comprising CJI Bobde, Justices AS Bopanna and V Ramasubramaniam has reserved orders on the application seeking stay.
Notably, the Election Commission of India opposed stay of electoral bonds. The ECI said they are not opposed to electoral bonds, but want more transparency. But Electoral Bonds is one step ahead unaccounted cash system, ECI said. The issue of transparency can be considered at the final argument stage, and there should be no interim stay, the ECI's counsel Senior Advocate Rakesh Dwivedi told the SC.