Pratidin
Polity and governanceJudgements2024

Association for Democratic Reforms v. Union of India

Struck down the electoral bond scheme.

Written by Pratidin; every fact checked by a separate review before publishing. How we work

Anonymous political funding was held to violate voters' right to information under Article 19(1)(a).

The central wing of the Supreme Court of India, New Delhi, which houses the Chief Justice's courtroom.
The central wing of the Supreme Court of India, New Delhi, which houses the Chief Justice's courtroom. Subhashish Panigrahi, CC BY-SA 4.0, via Wikimedia Commons
Practise this in the app: flashcards, quiz and a timed answer
Prelims

Quick recall

When was the Electoral Bond Scheme struck down?
15 February 2024.
What right did the Court rely on?
Voters' right to information under Article 19(1)(a).
When was the scheme introduced?
In 2018.
Which bank sold electoral bonds?
The State Bank of India.
What happened to unlimited corporate donations?
The amendment removing the cap was struck down.
What did the Court order SBI to do?
Disclose details of bonds purchased and redeemed.

Asked before in UPSC

Recurring theme: Transparency in political funding and voters' right to information

Mains
  1. 2026 · GS2 · 15 marks

    To what extent do pressure groups, social movements and corporate lobbies deepen pluralistic democracy in India by representing excluded interests? Analyse whether the growing convergence of corporate wealth and political power poses a threat to the autonomy of formal democratic institutions.

    The electoral bonds verdict turned on the risk of anonymous corporate funding buying influence, which is the second half of this question.

  2. 2018 · GS4 · 10 marks

    The Right to Information Act is not all about citizens' empowerment alone, it essentially redefines the concept of accountability. Discuss.

    The Court struck down electoral bonds because they defeated the voter's right to information under Article 19(1)(a), extending the accountability logic of RTI.

  3. 2017 · GS2 · 15 marks

    To enhance the quality of democracy in India the Election Commission of India has proposed electoral reforms in 2016. What are the suggested reforms and how far are they significant to make democracy successful?

    Transparency in party funding is a core electoral reform area, and the 2024 verdict is now the leading development on it.

The basics

Why it matters

On 15 February 2024, a five-judge bench struck down the Electoral Bond Scheme as unconstitutional, holding that anonymous political donations violated voters' right to information.

5-0
Unanimous verdict striking down electoral bonds
15 February 2024.

What electoral bonds were

Bonds let donors fund parties anonymously.

How electoral bonds worked
  1. 1BuyDonors bought bonds from SBI.
  2. 2DonateParties received them anonymously.
  3. 3EncashParties encashed within 15 days.
  4. 4AnonymityVoters could not see who gave.

What the Court held

The judgment addressed several amendments.

Key holdings
  1. 1Right to informationVoters' right under Article 19(1)(a)
  2. 2Company donationsUnlimited corporate funding struck down
  3. 3DisclosureSBI told to disclose bond data
  4. 4ProportionalityAnonymity not the least restrictive means

You now know

  • The Electoral Bond Scheme (2018) was struck down on 15 February 2024.
  • Voters' right to information under Article 19(1)(a) was violated.
  • Removal of the cap on corporate donations was also struck down.
  • SBI had to disclose bond purchase and redemption data.

Go deeper

In one line: The Supreme Court ruled that voters have a right to know who funds political parties.

Why it matters for UPSC

Political funding and electoral reform are recurring GS2 topics.

The core idea

Anonymous funding can hide quid pro quo between donors and governments. The Court balanced donor privacy against voters' right to information and chose transparency. Debates continue on Electoral reforms and State funding of elections.

Where to go next

In one line: Striking down bonds exposed funding patterns but did not solve how parties should be funded.

What remains

Cash donations below disclosure limits, electoral trusts and spending limits that apply to candidates but not parties.

Proposals

The Indrajit Gupta Committee on State funding of elections, and wider Electoral reforms such as audited party accounts.

Where to go next

Electoral reforms

Making elections cleaner and fairer

In one line: Electoral reforms aim to make elections free, fair and transparent.

Examples

NOTA, disclosure of candidates' criminal records and assets, and VVPAT.

Pending ideas

Party finance transparency, inner-party democracy and simultaneous elections.

Where to go next

State funding of elections

Public money for campaigns

In one line: State funding means public money pays for part of election costs.

Indian proposals

The Indrajit Gupta Committee (1998) recommended partial funding in kind.

Debate

It could reduce dependence on donors but must prevent misuse.

Where to go next

Prelims-style quiz

  1. Electoral bonds were sold by:

    1. RBI
    2. Election Commission
    3. SBI
    4. Finance Ministry
    Show answer

    Answer: (c) SBI. The State Bank of India.

  2. Consider the following:
    1. The electoral bonds judgment was unanimous.
    2. It upheld unlimited corporate donations.
    Which of the statements given above is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Show answer

    Answer: (a) 1 only. The cap removal was struck down.

  3. The right to information about political funding was located in:

    1. Article 14
    2. Article 19(1)(a)
    3. Article 21
    4. Article 324
    Show answer

    Answer: (b) Article 19(1)(a). Article 19(1)(a).

  4. The Electoral Bond Scheme was notified in:

    1. 2020
    2. 2014
    3. 2018
    4. 2016
    Show answer

    Answer: (c) 2018. January 2018.

Syllabus

Related stories

Primary source