Supreme Court to Review Plea on Confiscation of Funds from Scrapped Electoral Bonds

The Supreme Court is set to hear a plea on July 22 seeking the confiscation of funds political parties received under the now-scrapped 2018 electoral bonds scheme. The petition claims the funds were used for undue benefits and requests a thorough investigation, along with potential tax reassessments.

The Supreme Court is scheduled to review a plea on July 22 that calls for the seizure of funds received by political parties through the discontinued 2018 electoral bonds scheme.

In a landmark decision on February 15, the apex court deemed the Centre's electoral bonds scheme unconstitutional.

According to the court's cause list for July 22, a bench led by Chief Justice D Y Chandrachud, alongside Justices J B Pardiwala and Manoj Misra, will examine the plea filed by Khem Singh Bhati.

The petition follows the court's February ruling, which mandated the disclosure of electoral bond transactions by corporate houses and political parties. The plea argues that the funds received were not donations but barter money exchanged for undue benefits at the public's expense.

The plea, prepared by senior advocate Vijay Hansaria and filed by advocate Jayesh K Unnikrishnan, claims that the electoral bonds were used by political parties to avoid prosecution or secure contracts.

The petition suggests forming a committee led by a former apex court judge to investigate the alleged benefits granted through electoral bonds. It also seeks tax reassessments and penalties for the involved political parties.

Initially introduced on January 2, 2018, the electoral bonds scheme aimed to offer a transparent alternative to cash donations for political party funding.