ASSOCIATION FOR DEMOCRATIC REFORMS & ANR. versus UNION OF INDIA & ORS.

Citation: [2024] 2 S.C.R. 420 · Decided: 15-02-2024 · Supreme Court of India · Bench: D.Y. CHANDRACHUD, SANJIV KHANNA, BHUSHAN RAMKRISHNA GAVAI, J.B. PARDIWALA, MANOJ MISRA

Cited by 10 judgment(s) · cites 64 · see the full citation network in Lexace

Judgment (excerpt)

[2024] 2 S.C.R. 420 
: 2024 INSC 113 
Association for Democratic Reforms & Anr. 
V. 
Union of India & Ors. 
(Writ Petition (C) No. 880 of 2017) 
15 February 2024 
[Dr Dnhananjaya Y Chandrachud,* CJl, 
8 R Gavai, 
J B Pardiwala, Manoj Misra and Sanjiv Khanna,* JJ.] 
Issue for Consideration 
The matter pertains to the constitutional validity of the Electoral 
Bond Scheme which introduced anonymous financial contributions 
to political parties; as also the constitutional validity of the 
provisions of the Finance Act 2017 which, among other things, 
amended the provisions of the Reserve Bank of India Act 1934, 
the Representation of the People Act 1951, the Income Tax Act 
1961; as also whether unlimited corporate funding to political 
parties, as envisaged by the amendment to 
s. 182(1) 
of the 
Companies Act infringes the principle of free and fair elections 
and violates Art. 14 of the Constitution; and whether the non- 
disclosure of information on voluntary contributions to political 
parties under the Electoral Bond Scheme and the amendments 
to 5. 29C of the RPA, s. 182(3) of the CA and 5. 13A(b) of the 
IT Act are violative of the right to information of citizens u/Art. 
19(1)(a) of the Constitution. 
Headnotes 
Elections — Electoral process — Electoral Bond Scheme, 2018 
- Electoral Bond Scheme introduced anonymous financial 
contribution to political parties — Constitutional validity of: 
Held: (per Dr Dhananjaya ४ Chandrachud, Cul.) (for himself 
and for B R Gavai, J B Pardiwala and Manoj Misra, JJ) Electoral 
Bond Scheme is unconstitutional — Directions to the issuing bank 
to stop the issuance of Electoral Bonds — SBI to submit: details 
of Electoral Bonds purchased since 12 April 2019 till date to the 
ECI including the date of purchase of each Electoral Bond, the 
name of the purchaser of the bond and the denomination of the 
* Authors 
Ed. Note 
: Hon’ble Dr Dhananjaya Y Chandrachud, Cul, pronounced the judgement of the Bench comprising 
his lordship, Hon’ble Mr. Justice B.R. Gavai, Hon’ble Mr. Justice J.B. Pardiwala, Hon’ble Mr. Justice Manoj 
Misra, while Hon’ble Mr. Justice Sanjiv Khanna pronounced his separate judgement.
[2024] 2 S.C.R. 
421 
Association for Democratic Reforms & Anr. v. Union of India & Ors. 
Electoral Bond purchased; details of political parties which have 
received contributions through Electoral Bonds since 12 April 2019 
till date to the ECI, and each Electoral Bond encashed by political 
parties — SBI to submit the said information to the ECI within the 
period stipulated - ECI to publish the information shared by the 
SBI on 
its official website — Electoral Bonds within the validity 
period of fifteen days but have not been encashed by the political 
party yet, to be returned by the political party or the purchaser to 
the issuing bank — Constitution of India. [Paras 216, 219] — Held: 
(per Sanjiv Khanna, J.) (Concurring with Dr Dhananjaya Y 
Chandrachud, Cul.) (Concurring with conclusions albeit with 
different reasonings) Electoral Bond Scheme is unconstitutional 
and 
is struck down — Directions to ECI to ascertain the details 
from the political parties and the State Bank of India, which issued 
the Bonds, and the bankers of the political parties and thereupon 
disclose the details and names of the donor/purchaser of the Bonds 
and the amounts donated to the political party - Henceforth, the 
issuance of fresh Bonds 
is prohibited — Electoral Bonds within 
the validity period of fifteen days but have not been encashed by 
the political party yet, to be returned by the political party or the 
purchaser to the issuing bank. [Para 79] 
Elections — Electoral process — Electoral Bond Scheme - 
Amendmentto s. 182 of the Companies Act, 2013 Act, deleting 
the first proviso thereunder (as amended by the s. 154 of the 
Finance Act, 2017) thereby permitting unlimited corporate 
funding to political parties — First proviso to s. 182 provided 
the limit of contribution by the company upto seven and a half 
per cent of its average net profits during the three immediately 
preceding financial years — Validity of: 
Held: (per Dr Dnananjaya Y Chandrachud, Cul.) (for himself and 
for B R Gavai, J 8 Pardiwala and Manoj Misra, JJ): Is arbitrary 
and violative of Art. 14 — 
It infringes the principle of free and fair 
elections — Amendment to 5. 182 is manifestly arbitrary for treating 
political contributions by companies and individuals alike; permitting 
the unregulated influence of compan

Excerpt shown. Read the full judgment & AI analysis in Lexace.