Supreme Court Bench headed by CJI DY Chandrachud to hear challenge to Electoral Bonds notification tomorrow

The Supreme Court will hear on Tuesday, a plea challenging a recent notification that extends the period of sale of electoral bonds by 15 days during years when elections are scheduled to be held for State assemblies and Union Territories with legislature..The plea will be heard by a bench of Chief Justice of India DY Chandrachud with Justices Hima Kohli and JB Pardiwala. .An electoral bond is an instrument in the nature of a promissory note or bearer bond which can be purchased by any individual, company, firm or association of persons provided the person or body is a citizen of India or incorporated or established in India.The bonds, which are in multiple denominations, are issued specifically for the purpose of contribution of funds to political parties in its existing scheme in the country..The Supreme Court had last week stated that it will list the matter challenging the notification. This was after Senior Advocate Anoop Chaudhari mentioned the fresh plea challenging the recent notification.This fresh notification amended the scheme to provide “an additional period of 15 days” for the sale of electoral bonds “in the year of general elections to the legislative assemblies of States and Union Territories with legislature”.The challenge to the scheme itself is already pending before the top court.Electoral bonds were introduced through Finance Act 2017, which in turn amended three other statutes - the RBI Act, the Income Tax Act and the Representation of People Act - for enabling introduction of such bonds.The Finance Act, 2017 introduced a system of electoral bonds to be issued by any scheduled bank for the purpose of electoral funding.The Finance Act was passed as a money bill, which meant that it did not require the assent of Rajya Sabha.Various petitions are pending before the top court challenging at least five amendments made to different statutes through Finance Act 2017 and Finance Act 2016 on the ground that they have opened doors to unlimited, unchecked funding of political parties.The petition by two NGOs – Association for Democratic Reforms and Common Cause said that the money bill route was adopted in order to bypass the Rajya Sabha, where the ruling BJP government does not have a majority.The petition has assailed five major amendments which have been brought about through Finance Act, 2017 and Finance Act, 2016.Section 31, the Reserve Bank of India Act, 1934 through Part III, Section 135 of the Finance Act, 2017,Section 29C, the Representation of the People Act, 1951 through Part – IV, Section 137 of the Finance Act, 2017Section 13A, the Income Tax Act, 1961 through Chapter III, Section 11 of the Finance Act, 2017 and inSection 182 of the Companies Act, 2013 through Part-XII, Section 154, the Finance Act, 2017.Section 2 of the Foreign Contribution Regulation Act, 2010 (FCRA) through Finance Act, 2016..The Central government had last month told a bench led by Justice BR Gavai, which is hearing the main challenge to the scheme, that the electoral bonds scheme is most transparent.Solicitor General (SG) Tushar Mehta had stated that there is no scope for black money in the electoral bonds scheme.