The State Bank of India (SBI) is facing criticism from various quarters for seeking more time from the Supreme Court to disclose the details of electoral bonds purchased and redeemed by political parties since April 12, 2019. The apex court had struck down the Centre’s Electoral Bonds Scheme as unconstitutional on February 15, 2024, and had directed SBI to furnish the information to the Election Commission by March 6, 2024. However, SBI filed an application on March 4, 2024, requesting an extension till June 30, 2024, citing practical difficulties in decoding and compiling the data.
What are electoral bonds?
Electoral bonds are a form of anonymous donation to political parties that can be purchased from SBI’s authorised branches. The donor’s identity is not revealed to anyone, except the bank. The bonds can be encashed by the political parties within 15 days of purchase. The scheme was introduced by the Centre in 2018 with the aim of bringing transparency and accountability in political funding. However, the scheme was challenged in the Supreme Court by various petitioners, who argued that it violated the principles of free and fair elections, democracy and federalism.
Why did the Supreme Court strike down the scheme?
The Supreme Court delivered its judgment on February 15, 2024, after hearing the matter for more than two years. The court held that the scheme was unconstitutional as it violated the right to information of the voters, who have a right to know the source of funding of the political parties. The court also observed that the scheme facilitated black money and money laundering, and created an uneven playing field for smaller parties and independent candidates. The court further noted that the scheme undermined the role of the Election Commission as a watchdog of electoral democracy.
What did the Supreme Court direct SBI to do?
The Supreme Court issued several directions to ensure compliance with its judgment and to safeguard the integrity of the electoral process. One of them was to direct SBI to disclose to the Election Commission the details of electoral bonds purchased and redeemed since April 12, 2019, when the court had passed an interim order stating that the legality of the scheme was under consideration. The details included the date of purchase, the identity of the purchaser, denomination of the bond, and particulars of political parties receiving contributions through electoral bonds. The court gave SBI a deadline of March 6, 2024, to submit this information.
Why did SBI seek more time?
SBI filed an application on March 4, 2024, seeking an extension of time till June 30, 2024, to comply with the court’s direction. SBI claimed that there were practical hurdles in decoding and compiling the information, as it had to maintain anonymity of the donors as per the provisions of the scheme and its guidelines. SBI explained that it had a decentralised system of data storage, with information pertaining to bond issuance and redemption maintained in separate silos at its 29 authorised branches across India. SBI also said that some of the data was stored in physical form in sealed covers. SBI stated that it had issued a staggering 22,217 bonds during the specified period, and that it would require a lot of time and effort to retrieve and reconcile this information.
Who has criticised SBI’s move?
SBI’s move has attracted criticism from various quarters, including legal experts, opposition parties and bank employees’ unions. They have accused SBI of trying to cover up political funding and delay justice. They have also questioned SBI’s claim of facing practical difficulties in disclosing the information, saying that it was surprising that India’s largest bank could not access its own data in a digital era. They have demanded that SBI should adhere to the deadline set by the Supreme Court and disclose all the details of electoral bonds to the Election Commission before March 6, 2024.
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