New Delhi, India

The Indian Supreme Court, on Monday (Mar 11) will hear an application filed by the State Bank of India (SBI), seeking an extension until June 30 to disclose details of each electoral bond encashed by political parties before the scheme was scrapped last month.

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Constitutional bench

A five-judge Constitution Bench led by Chief Justice D.Y. Chandrachud and comprising justices Sanjiv Khanna, B. R. Gavai, J. B. Pardiwala, and Manoj Misra, is set to convene today (Monday, Mar 11) at 10:30 am to deliberate on two petitions. 

Also read | India: SC rejects SBI's electoral bond disclosure extension plea; asks ECI to publish details by March 15

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Along with SBI's plea seeking extension, the bench will also consider a separate plea, requesting the initiation of contempt action against the SBI. This plea alleges that SBI "wilfully and deliberately" disobeyed the apex court's direction to submit details of contributions made to political parties through electoral bonds to the Election Commission by March 6.

The scrapping of electoral bonds

In a significant ruling on February 15, a five-judge Constitution Bench invalidated the central government's electoral bonds scheme, which permitted anonymous political funding, deeming it "unconstitutional." The court also mandated disclosure by the Election Commission of the donors, their donation amounts, and the recipients by March 13.

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Subsequently, the top court directed the SBI, the designated financial institution under the scheme, to furnish details of electoral bonds purchased from April 12, 2019, to date to the Election Commission by March 6. The Commission was instructed to publish this information on its official website by March 13.

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However, as per news agency PTI, on March 4, the SBI petitioned the apex court for an extension until June 30 to disclose the details of electoral bonds encashed by political parties. The bank argued that retrieving information from "each silo" and "decoding" electoral bonds and matching donors to donations due to stringent anonymity measures would be a time-consuming exercise.

The data pertaining to bond issuance and redemption were maintained separately to safeguard donor anonymity.

SBI's 'mala fide' application

A subsequent petition was lodged seeking contempt proceedings against the SBI for allegedly flouting the apex court's directives. The petitioners, NGOs Association for Democratic Reforms and Common Cause, accused the SBI of filing the extension application at the eleventh hour to prevent public disclosure of donor details before the upcoming Lok Sabha elections.

"It is submitted that the said application is mala fide and demonstrates a wilful and deliberate disobedience & defiance of the judgement passed by the constitution bench of this court. It is further a clear attempt to undermine the authority of this court," it alleged.

"The petitioner herein is filing the instant petition seeking initiation of contempt proceedings against State Bank of India for wilfully and deliberately disobeying the order dated February 15 passed by this court … wherein this court directed SBI to submit details of contribution made to the political parties through electoral bonds to the Election Commission of India by March 6," said the contempt plea.

The plea asserted that electoral bonds are "completely traceable", as evidenced by the SBI's maintenance of donor records. It contended that any form of anonymity in political party finances contradicts the principles of participatory democracy and the public's right to information, as enshrined in Article 19(1)(a) of the Constitution.

Access to information about electoral bonds, the petition argued, would empower voters to scrutinise, express, and make informed decisions regarding their choices.

(With inputs from agencies)