India's Supreme Court scraps opaque election funding system
The system was challenged as it hindered the public’s right to know who had given money to political parties
PHOTO: Reuters
PUBLISHED ONFebruary 15, 2024 7:57 AM
NEW DELHI - India's Supreme Court on Feb 15 scrapped a seven-year-old election funding system that allows individuals and companies to donate money to political parties anonymously and without any limits.
The decision is seen as a setback for Indian Prime Minister Narendra Modi's Bharatiya Janata Party (BJP), which has been the largest beneficiary of the system it introduced in 2017.
The system, called "electoral bonds", was challenged by opposition members and a civil society group on grounds that it hindered the public's right to know who had given money to political parties.
Under the system, a person or company can buy these bonds from the state-run State Bank of India and donate them to a political party of their choice.
A five-judge bench headed by Chief Justice D.Y. Chandrachud said that the system is "unconstitutional".
The court directed State Bank of India to not issue any more of these bonds
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