A petition filed in the Supreme Court on Wednesday (January 22, 2025) sought a review of its order passed in August 2024 dismissing pleas for confiscation of ₹16,518 crore received by political parties under the 2018 electoral bonds scheme.
The review petition sought a recall of the judgment delivered that dismissed a previous petition seeking confiscation of money received under the scheme. It therefore sought restoration of the petition and a fresh hearing.
The top court, on August 2 last year, rejected a batch of pleas including the one filed by Khem Singh Bhati, who filed the review, seeking a court-monitored probe into the electoral bonds scheme and observed that it could not order a roving inquiry.
The review plea, filed through advocate Jayesh K. Unnikrishnan and settled by senior advocate Vijay Hansaria, said on February 15, 2024 that the top court held in another case — Association for Democratic Reforms (ADR) vs. Union of India — that the electoral bonds are unconstitutional for violating Article 19(1)(a) of the Constitution.
“The effect of declaring the Electoral Bond Scheme and the various statutory provisions as unconstitutional is that the said scheme never existed and is void ab-initio and it is a settled position of law that the court only finds law and it does not make law,” it argued.
The verdict in the ADR case, said the plea, rendered the scheme void since inception and therefore the subsequent pleas seeking confiscation of the amount collected by political parties could not have been dismissed.
“In the absence of any declaration by this court in the ADR case that the judgement would apply prospectively, the existence of the Electoral Bond Scheme on the date of purchase could not have been the basis for dismissal of the present writ petition. The Electoral Bond Scheme stood wiped out for all purposes from the date of inception and the necessary consequences must follow,” it said.
The plea said the previous Bench’s reliance on the existence of parliamentary legislation permitting electoral bonds to dismiss the writ petition constituted an “apparent error on the face of the record”.
The ADR judgment did not declare its findings to be prospective, which means the statutory framework supporting electoral bonds should have been treated as invalid from the outset, it said.
It argued the judgment had a retrospective effect, rendering the electoral bonds null and void since its inception.
The plea said the three-judge Bench’s dismissal of the petitions, seeking confiscation of the amount received by political parties under the scrapped scheme, indirectly modified the ADR judgment, which was delivered by a five-judge Constitution Bench.
The plea said evidence disclosed under court directions underlined the quid pro quo between donations made through the scheme and the benefits received by corporate donors, contradicting the Bench’s conclusion that such claims were speculative.
A five-judge Constitution Bench headed by former Chief Justice of India D.Y. Chandrachud on February 15 last year scrapped the electoral bonds scheme of anonymous political funding introduced by the BJP government.
Following the top court’s judgement, the State Bank of India, the authorised financial institution under the scheme, shared the data with the Election Commission which made it public.
The electoral bonds scheme, which was notified by the government on January 2, 2018, was pitched as an alternative to cash donations made to political parties as part of its efforts to bring in transparency in political funding.
