Lawstreet Journal

Supreme Court Refuses To Issue Immediate Stay Against Electoral Bonds

Lawstreet Journal 20 Jan 2020 9:31pm

Image courtesy: Lawstreet Journal Judiciary Supreme Court Refuses To Issue Immediate Stay Against Electoral Bonds

As Delhi polls are approaching, the Supreme Court of India directed the Election Commission of India today (January 20, 2020) to give reply on electoral bonds within two weeks but refused to give a stay order against the bonds. 

The decision was given by the bench comprising the Chief Justice of India, S.A. Bobde, Justice B.R. Gavai and Justice Surya Kant. The application was filed by the Association of Democratic Reforms (ADR) for seeking a stay on the bonds before the decision about the validity of those bonds came from the Apex Court.

These bonds were introduced in 2017 by making amendments in Reserve Bank of India Act, 1934, Companies Act, 2013, Income Tax Act, 1961, Representation of Peoples Act, 1950 and Foreign Contributions Regulations Act, 2010 through Financial Act, 2017. These amendments made electoral bonds absolutely anonymous as they made it transferable like currency so tracing back the original owner became nearly impossible. The amendments also took away the restriction that the companies can only make a contribution of 7.5% of net average profit of 3 preceding financial years which also enables the newly formed companies to make the contribution. ECI observed that "This opens up the possibility of shell companies being set up for the sole purpose of making donations to political parties, with no other business consequence of having disbursable profits."

A bench headed by Justice S.A. Bobde gave this decision by saying that "A stay was not given by this court before. So we may… Continue Reading...

Tagged: Electoral Bonds  
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