In Brief
The Association for Democratic Reforms challenged the Electoral Bond Scheme 2018 through two applications seeking a stay on further sale of electoral bonds, arguing that the scheme's anonymity provisions enable unaccounted money and foreign contributions to influence Indian elections. The Supreme Court dismissed both applications, holding that while the scheme provides donor anonymity, it mandates all transactions through banking channels with full KYC compliance, making purchaser information available to SBI and law enforcement. Additionally, corporate expenditure on bonds must be disclosed in publicly-filed financial statements, and the interim order requires political parties to submit sealed donor details to the Election Commission, ensuring accountability. The Court found RBI's concerns related to form rather than substance and noted bonds are non-tradable and restricted to Indian citizens."
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