NewsSC order to release the list of donors for electoral bonds violates...

SC order to release the list of donors for electoral bonds violates the Right to Privacy

In the area of democratic procedures, finance mechanisms used in political parties have a very big impact on governance. Over time, different methods have been put in place to regulate political donations so as to ensure transparency and accountability. One such method is the Electoral Bonds scheme that was recently introduced in India and has become a matter of great concern with regard to privacy rights.

The Birth of Electoral Bonds

The genesis of the Electoral Bonds scheme dates back to 2017 when it was brought forth by then Finance Minister Arun Jaitley as a way to clean up political funding. Before this time, political contributions within India were typically opaque and criticisms were raised about the effect of undisclosed contributions on the politics.

Under the Electoral Bonds scheme, individuals and entities could buy bonds from specified branches of State Bank of India (SBI) and donate them to political parties without their identities being known. The idea behind this program was that it would facilitate political contributions through banking systems thereby ostensibly minimizing corruption possibilities and donor anonymity respectively.

The Right to Privacy Puzzle

However, the Electoral Bonds scheme soon found itself engrossed in a legal quagmire when it was questioned about its compatibility with the right to privacy as enshrined in the Indian Constitution. Critics said that by allowing political donations to be anonymous, this scheme undermined transparency and accountability that are the cornerstones of democracy.

But the problem concerning the Electoral Bonds reached its peak when Supreme Court of India came into play and directed State Bank of India should release names of those who gave and received them. Although this move was aimed at upholding transparency in political funding, it collided with donors’ right to privacy.

Political Backlash and Allegations of Favoritism

The electoral bonds controversy has drawn a lot of criticism to the Bharatiya Janata Party (BJP) which is said to have benefited disproportionately from the scheme. It should be noted that the BJP, holding key states like Uttar Pradesh, Madhya Pradesh, Rajasthan, Haryana and central government power was singled out as the biggest recipient of electoral bonds.

Faced by this glaring disparity, opposition parties have accused BJP of using its political clout for securing considerable financial assistance through electoral bonds. The party’s big bond purchases have triggered accusations of favoritism and doubts regarding the fairness of the electoral process.

The Honorable Home Minister, Shri Amit Shah, responded to these allegations at the India Today Conclave. He bragged of BJP’s significant representation in the Parliament with 306 Members of Parliament (MPs) and tried to put into perspective how electoral bonds came to the party’s coffers. According to Shah, while BJP received bonds worth 600 crores, other political parties with less MPs that totalled 242 reportedly received an astonishing 14,000 crore rupees.

The statements made by Shah have exacerbated the controversy around electoral bonds because there are questions regarding how those bonds were distributed and about alleged inaccuracies in their allocation. The unequal distribution of bond allotments among political parties has been seen as a sign of corruption and resulted in increased demands for more transparency in relation to financing politics.

Amidst this conversation, allegations of favoritism and hotly contested issues about electoral bonds bring out the need for stringent mechanisms that can preserve honesty within India’s elections as well as preserve democratic principles.

Legal Battles and Policy Implications

The Supreme Court’s directive for disclosing information regarding Electoral Bond contributors led to series of court battles and raised fundamental questions on how transparency should balance with privacy in an electoral process. While proponents of transparency argued that it was important to reveal donors’ identities as a way of preventing corruption and ensuring accountability, advocates for privacy rights insisted that compelling disclosure violated individuals’ personal space hindering future contributions into politics.’

It became even more complicated by a clash between the judiciary and executive represented by the elected government. The intervention of Supreme Court in a policy that was enacted through proper democratic process raised concerns about judicial overreach and undermining of legislative authority.

Economic Implications and Foreign Investments

Apart from being a legal issue, the electoral bonds saga has also raised economic concerns for India. The uncertainty around political donations confidentiality might discourage investment both locally and internationally hence, eroding confidence on regulatory framework in this country.

These concerns were underscored in a letter from the chairman of the Supreme Court Bar Association to the President of India, which focused on possible impact on India’s economic growth. Inconsistencies noted in the interpretation of policies by different arms of government may erode trust in state organs leading to reduced foreign investments thus hampering development.

The Constitutional Dispute: Government versus Supreme Court

The disagreement between the Indian government and the Supreme Court over Electoral Bonds scheme constitutes a constitutional dispute with wide-ranging consequences. Central to this disagreement is the court’s understanding of some clauses of the constitution on privacy and division of power.

The government maintains that Electoral Bonds scheme came into existence under due democratic process and is necessary for transparent funding of politics; however, the Supreme Court views itself as protectorate of basic human rights such as privacy. Thus this confrontation emphasizes how precarious it is to uphold constitutional principles by both arms – executive and judiciary.

The Controversy of Collegium System

India’s judiciary has been plagued by internal disputes over and above the Electoral Bonds controversy, particularly regarding the Collegium system. The Collegium is a group of senior judges responsible for making judicial appointments; it has been accused of lacking transparency and favoritism.

Critics argue that the Collegium undermines accountability and meritocracy in judicial appointments because it lacks any real checks and balances. However, efforts to reform the institution have been blocked by those within, revealing wider problems within India’s legal system.

Disputes concerning Collegium have pointed to the necessity for comprehensive reforms aimed at bolstering judicial transparency thereby enhancing public confidence in its integrity as well as independence. These debates are important for resolving constitutional and institutional challenges faced by India as a nation grappling with democratic governance responsibilities and commitment to rule of law.


The issue of electoral bonds illustrates the difficult equilibrium between open government and individual rights in a democracy. The principle of transparency should apply to political funding for purposes of preserving democratic ideals on one hand, while it should also be weighed against privacy concerns as core aspects of personal freedom.

For future considerations, experts, courts and non-governmental organizations ought to engage into delicate conversations that can help reconcile the irreconcilable interests that exist in political financing with regard to transparency and secrecy. This is not only important in order to protect democracy values but also enable a good environment for business growth and investment in India.

Isrg Team
Isrg Team
Isrg Team is a member of Digital Pradesh News Networks, a collective of journalists, reporters, writers, editors, lawyers, advocates, professors, and scholars affiliated with the Digital Pradesh News Network.

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