Supreme Court Constitution Bench to hear challenge to Electoral Bonds scheme from October 31

A Constitution bench led by Chief Justice of India DY Chandrachud will begin hearing next week the case concerning the legal validity of the electoral bonds scheme that facilitates anonymous donations to political parties..The bench comprising CJI Chandrachud along with Justices Sanjiv Khanna, BR Gavai, JB Pardiwala and Manoj Misra is slated to begin hearing the matter from October 31 (Tuesday)..On October 16, the Supreme Court of India decided to refer the challenge to the controversial scheme to a five-judge Constitution Bench, in view of a legal issue involved relating to the passage of laws as money bills.When the matter was heard earlier on October 10, the Court had said that the matter would be listed for final hearing on October 31 this year. During that hearing too, the Court had debated whether to refer the matter to a Constitution bench, but decided ultimately against it at the time. Days later, the matter was formally referred to a five-judge Constitution Bench. .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 contributing funds to political parties in its existing scheme.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.The 2017 Finance Act introduced a system by which electoral bonds could 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 the Rajya Sabha.Various petitions are pending before the top court challenging at least five amendments made to different statutes through the Finance Act, 2017 on the ground that they have opened doors to unlimited, unchecked funding of political parties.The petitions have also raised the ground that the Finance Act could not have been passed as a money bill.The Central government in its counter-affidavit has maintained that the electoral bonds scheme is transparent.The top court had in March 2021 dismissed an application seeking a stay on the scheme.