BREAKING : Supreme Court Reserves Orders On Plea To Stay Electoral Bonds; Election Commission Opposes Stay

The Supreme Court on Wednesday reserved order on an application seeking stay of release of fresh set of electoral bonds ahead of the assembly polls in West Bengal, Kerala, Assam, Puducherry etc.A bench comprising Chief Justice of India SA Bobde, Justices AS Bopanna and V Ramasubramaniam was hearing an application filed by NGO Association for Democratic Reforms(ADR).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.Submissions by ADR Advocate Prashant Bhushan, appearing on behalf of ADR, highlighted the objections raised by the Reserve Bank of India and the Election Commission, on the sale of anonymous Electoral Bonds (EBs). He referred to the communications sent by the former RBI Governor Urjit Patel to the then Finance Minister Arun Jaitley, expressing "discomfiture" about EBs. He pointed out that the RBI Governor had called the bonds a "fraud scheme" having implications on banking system and "possibility of misuse, more particularly through shell companies". He emphasized that anonymous electoral bonds is "legalized corruption" and will pave way for shell companies to essentially offer bribes. He submitted that at least the Reserve Bank should be informed as to who the initial subscriber is. "Now it is issued in scripted form, like cash, and no one except SBI knows the donor identity," he said. When the CJI commented that the bonds can be given to any political party, and not necessarily the ruling party, Bhushan responded, "It can be given to any political party. But ruling party is in a position to give favours. So, companies will support ruling parties, as they are in a position to give benefits. It might go to the party ruling the state govt or central govt depending on what the quid pro quo is." Bhushan also referred to the objections raised by the Election Commission on sale of EBs. He submitted, "The only person who wants anonymity is the person who is paying bribe to the party in power…there is no justification for the argument that anonymity is maintained for the safety of donor. Because, it is not anonymous to the Government who the donor is. Govt can track identity. But it is anonymous to everyone else." The CJI asked if the petitioner is seeking complete anonymity. "No, no. I want complete transparency. This Court has held that candidates should disclose their assets, criminal background etc. Even without a law, this Court directed that. This court has held that transparency is absolutely necessary in an election," he responded. Bhushan further took objection to the manner in which the provisions of EB were inserted by way of an amendment to the Finance Bill, essentially to circumvent the mandate of the Upper House of the Parliament. He said, "These amendments are made through the Finance Bill, in order to avoid going to the Rajya Sabha where the Government did not have a majority. This cannot be done through Finance Bill." He submitted that the Finance Bill 2017 allowed foreign companies to donate through Indian subsidiaries, thereby allowing foreign companies to influence Indian elections. Even the Election Commission has called this a "retrogade step", he argued. He added that the Finance Bill 2017 removed the requirement of profit threshold for donations, allowing shell companies to donate. At this juncture, the CJI said that if the submissions made by Bhushan are taken on face, then the Court will have to strike down the impugned law. "If what you are saying is correct, we will have to strike down the law. How can it be done through an interim order?" the CJI asked. Bhushan then clarified that as of now, they are only seeking a stay on a fresh tranche of bonds that are proposed to be sold from next week, ahead of assembly polls in West Bengal, Kerala, Assam, Puducherry etc. He then continued his submissions on the concerns raised by Election Commission with respect to EBs. "Election Commission said that at least to them it should be reported", he said while referring to its affidavit. He further submitted that the Court's order passed in April 2019 will not suffice because of the very nature of the bonds. In the said order, the Top Court had directed all parties to furnish by the information as to the donations received by way of EBs, including the identity of the donors, amounts received, details of payments, bank accounts etc. to the Election Commission in sealed covers, Bhushan said that the RBI has also expressed concerns that the bonds can be transferred, facilitating money laundering and kickbacks. "Your arguments at this...

BREAKING : Supreme Court Reserves Orders On Plea To Stay Electoral Bonds; Election Commission Opposes Stay

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