Electoral bonds were interest-free bearer bonds purchasable from SBI in denominations of ₹1,000 to ₹1 crore, and donated to political parties anonymously. Introduced by the Finance Act 2017, they operated from March 2018 to February 2024. The key controversy: only the government — through SBI and Finance Ministry — could know who bought which bonds, creating a potential for undisclosed quid pro quo.
Timeline
Electoral Bonds: A Timeline
“The right to information is a facet of freedom of speech and expression under Article 19(1)(a). Voters have a right to know the source of political funding. The Electoral Bonds Scheme violates this right and is unconstitutional.”
— Chief Justice D.Y. Chandrachud, Association for Democratic Reforms vs Union of India, February 15, 2024
Electoral Bonds — The Numbers (2018–2024)
- ₹16,518 crore total bonds sold across 30 tranches
- BJP received ₹6,986 crore (42% of disclosed amounts)
- TMC received ₹1,397 crore; Congress ₹1,334 crore
- Top purchaser sectors: Infrastructure, mining, pharma, media
- ₹1 crore denomination bonds = 94% of total value
- 22,217 bonds remain unmatched (purchaser–party link broken) as of April 2026
After the SC verdict, corporate donations to political parties must again comply with the Companies Act cap (7.5% of 3-year average profit) and be disclosed in annual reports. All political parties must disclose donations above ₹20,000 in affidavits to the EC. The government has not yet proposed a replacement scheme.
On what Constitutional grounds did the Supreme Court strike down the Electoral Bonds Scheme?
Priya Sharma
Political Correspondent