SC questions EC’s role in cleaning up poll finances

The Supreme Court on Wednesday raised questions on Electoral Bonds and asked why the Election Commission was not the entity responsible for cleaning up election finances.
Solicitor General (SG) Tushar Mehta defended the electoral policy and argued that if all donations were given to the Election Commission of India for equitable distribution, nothing would come through official channels, and everything would be in cash. He emphasized that this scheme, which protects the privacy of citizens making donations to political parties, is crucial.

SG Tushar Mehta highlighted the importance of safeguarding “privacy” and the “political affiliation of the citizens who make such donations to political parties.” In prior written submissions, the Union government had asserted that citizens do not possess a fundamental right to know the source of political funding. Attorney General R. Venkataramani contended that the “right to know” must be subject to reasonable restrictions and should serve specific purposes.

AG Venkataramani had also noted in writing that if the Supreme Court attempted to regulate electoral bonds, it would be encroaching into the realm of policy.

SG Tushar Mehta argued that the scheme strives to strike a balance between transparency and the protection of donor confidentiality. He pointed out that donors frequently resort to using unaccounted cash for political contributions due to fears of potential victimization or retribution from other political parties.

SG Mehta stated that previous government initiatives aimed at cleaning up the source of political donations, including tax exemptions and electoral trusts, had proven unsuccessful.
The electoral bond does not disclose the name of the buyer or payee to protect citizens’ right to privacy regarding their political affiliations and their choice of funding a political party without fear of repercussions. This aligns with the state’s obligation to safeguard citizens’ privacy, which includes the right to informational privacy, including knowledge of the political affiliations of its citizens.