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Supreme Court Declares Electoral Bonds Scheme Unconstitutional

Supreme Court Declares Electoral Bonds Scheme Unconstitutional Banner - The Best IAS Coaching in Delhi | SHRI RAM IAS Study Centre

The recent landmark judgment by the Supreme Court of India, declaring the electoral bonds scheme unconstitutional, has sent shockwaves through the political and financial establishments of the country. This decision not only strikes down a controversial scheme but also brings to light the deep nexus between money and politics. For UPSC aspirants, understanding this judgment and its implications on the Indian democracy is crucial, as it represents a significant development in current affairs. In this blog, we will delve into the details of the judgment, its impact on political funding transparency, and the broader implications for the Indian democratic process.

Electoral Bonds Scheme: An Overview

The electoral bonds scheme, introduced in 2018, was aimed at providing a legitimate channel for political donations while ensuring donor anonymity. Under this scheme, individuals and corporations could purchase bonds from authorized banks and donate them to political parties. However, with the Supreme Court deeming the scheme unconstitutional, the veil of anonymity has been lifted.

Violation of Right to Information

The central argument presented by the Chief Justice of India, D.Y. Chandrachud, and supported unanimously by a five-judge bench, was that the electoral bonds scheme violated the voters' right to information about political funding. In a democracy, citizens have the right to know who is funding political parties as it directly affects their decision-making process during elections.

Impact on Democracy and Political Equality

One of the key concerns highlighted by the judgment was the potential for unrestrained influence of corporates in the electoral process. The scheme and preceding amendments authorized unlimited financial contributions from corporations, thereby giving them an unfair advantage over ordinary citizens. This inequality goes against the principles of free and fair elections and undermines the concept of "one person, one vote." The verdict emphasizes the importance of political equality and the need to maintain a level playing field for all citizens.

Deep Nexus between Money and Politics

The judgment goes beyond the electoral bonds scheme and sheds light on the deep nexus between money and politics. It emphasizes that contributions made by companies are purely business transactions made with the intent of securing benefits in return. The judgment raises important questions about the responsiveness of elected representatives to the needs of the electorate when large corporations can contribute unlimited amounts and potentially influence policy decisions.

Transparency and Accountability: The Way Forward

The Supreme Court's verdict highlights the need for transparency and accountability in political funding. By striking down the provision allowing anonymity for donors, the court has signaled its commitment to preserving the integrity of the electoral process. This judgment opens the door for reforms that will promote disclosure of political contributions and enforce stricter regulations on political funding.

Implications for UPSC Aspirants

For UPSC aspirants, understanding the implications of this judgment is crucial as it directly impacts the functioning of Indian democracy. As future administrators, it is essential to be aware of the challenges and issues associated with political financing. This knowledge will enable aspirants to contribute effectively to the development and implementation of policies aimed at promoting transparency, accountability, and fairness in the electoral process.


The Supreme Court's declaration of the electoral bonds scheme as unconstitutional marks a significant turning point in Indian politics. The judgment highlights the importance of transparency and accountability in political funding, and the need to address the deep-rooted link between money and politics. As UPSC aspirants, it is essential to stay updated with such landmark judgments and analyze their implications for the functioning of Indian democracy. The verdict serves as a reminder of the importance of preserving the principles of political equality and the participatory nature of Indian democracy. In this pursuit, it becomes even more critical for UPSC aspirants to equip themselves with knowledge and seek guidance from the best IAS coaching in Delhi to navigate through the ever-evolving landscape of current affairs and contribute meaningfully to the nation-building process.