ASSOCIATION FOR DEMOCRATIC REFORMS & ANR. versus UNION OF INDIA & ORS

ASSOCIATION FOR DEMOCRATIC REFORMS & ANR. versus UNION OF INDIA & ORS

The applications for stay were dismissed because the Scheme operates through banking channels with KYC and related safeguards, many RBI recommendations were incorporated (RBI's objections were largely to the form of issuance, not principle), information about purchasers is available with the authorised bank and...

Source-derived case information.

Parties
Petitioner: Association for Democratic Reforms; Petitioner: Common Cause; Respondent: Union of India; Respondent: Election Commission of India
Jurisdiction
India
Judgment Date
26 March 2021
Procedural Posture
Writ Petition (c) No.880 of 2017 / Interlocutory Applications (i.a. No.183625 of 2019 and I.a. No.36653 of 2021) Challenging Electoral Bond Scheme and Seeking Interim Stay
Outcome
Interlocutory applications dismissed
Legal Topics
Electoral Bond Scheme, 2018, Anonymity of Political Donations, KYC and Banking Channels, Interim Reliefs and Stay Applications, Disclosure of Donors, Companies Act Financial Disclosures
Election Law Administrative Law Company Law Tax Law Banking Regulation Constitutional Law Electoral Bond Scheme, 2018 Anonymity of Political Donations +4 more

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Parties

Association for Democratic Reforms

Petitioner

Common Cause

Petitioner

Union of India

Respondent

Election Commission of India

Respondent

Procedural Posture

Writ Petition (c) No.880 of 2017 / Interlocutory Applications (i.a. No.183625 of 2019 and I.a. No.36653 of 2021) Challenging Electoral Bond Scheme and Seeking Interim Stay

Legal Issues

  1. 1 Whether the Electoral Bond Scheme, 2018 permits unlawful anonymity in political funding and whether that justifies a stay of further bond sales
  2. 2 Whether purchases and encashment through banking channels with KYC and statutory filing obligations render donor information effectively traceable
  3. 3 Whether RBI objections defeated the Scheme in principle or pertained to form (scrip v. demat)

Ratio Decidendi

The applications for stay were dismissed because the Scheme operates through banking channels with KYC and related safeguards, many RBI recommendations were incorporated (RBI's objections were largely to the form of issuance, not principle), information about purchasers is available with the authorised bank and corroborated by companies' and political parties' statutory filings, the Court's earlier interim order requiring sealed disclosures to the Election Commission provides additional safeguards, and there was no justification to grant a stay at this interlocutory stage.

Court Disposition

Interlocutory applications dismissed

Orders

  • I.A. No.183625 of 2019 dismissed
  • I.A. No.36653 of 2021 dismissed