SC strikes down electoral bonds scheme, calls it unconstitutional. 5 points

The Supreme Court on Thursday struck down electoral bonds scheme, saying it violates of Article 19(1)(a) and Right to Information Act.  "Curbing black money and ensuring anonymity of donors can't be grounds to defend electoral bonds or need for transparency in political finding," the court said in its verdict. 

A five-judge Constitution bench of Chief Justice of India (CJI) DY Chandrachud and Justices Sanjiv Khanna, BR Gavai, JB Pardiwala and Manoj Misra delivered the verdict. 

Here's what the top court said

-- Electoral bonds scheme has to be struck down as unconstitutional. It violates the right to information of citizens, about possible quid pro quo.

--- The issuing bank shall forthwith stop the issue of electoral bonds. The State Bank of India shall furnish the details of donations through electoral bonds and the details of the political parties which received the contributions.

 -- Not all political contributions are made with the intent to alter public policy. Students, daily wagers etc also contribute. To not grant umbrella of privacy to political contributions only because some contributions are made for other purposes is not impermissible.

-- A company has more graver influence on the political process than contributions by individuals. Contributions by companies are purely business transactions. Amendment to Section 182 Companies Act is manifestly arbitrary for treating companies and individuals alike.

--Before amendment, loss making companies were not able to contribute. The amendment does not recognize the harm of allowing loss-making companies to contribute due to quid pro quo. The amendment to Section 182 Companies Act is manifestly arbitrary for not making distincition between loss making and profit making companies.

Electoral bonds were introduced through the Finance Act, 2017, which in turn amended three other statutes - the RBI Act, the Income Tax Act and the Representation of People Act - to enable the introduction of such bonds.