Supreme Court Rejects SBI Plea for Electoral Bond Extension

India’s Supreme Court has declined a request from the government-run State Bank of India (SBI) for additional time to disclose details regarding individuals and companies purchasing controversial electoral bonds to finance political parties.

In a ruling on Monday, the highest court stated that the requested information is readily accessible to the bank and instructed it to share the data with the Election Commission of India (ECI) by the end of business on Tuesday. The court further directed the ECI to compile and publish these details on its website by 5 pm on March 12, just before the expected announcement of the general election dates, which are due by May.

The court warned SBI of potential consequences for non-compliance, hinting at considering it as willful disobedience of a court order.

Electoral bonds, introduced by Prime Minister Narendra Modi’s government in 2017, allowed individuals and companies to make unlimited and anonymous donations to political parties through certificates purchased from SBI.

However, on February 15, the Supreme Court declared the system unconstitutional, citing infringement upon voters’ right to information. This decision was a setback for Modi’s Bharatiya Janata Party (BJP), the largest beneficiary of these bonds.

The court mandated that SBI disclose details of each bond sold since April 2019, including purchaser information, to the ECI for publication by March 13. SBI had requested an extension until June 30, which was denied.

Critics have denounced the electoral bond system as a clandestine method for channeling “black money” to political parties. Supporters argue it offers better regulation than cash donations, which remain legal. Concerns were also raised about the government potentially accessing donor information through SBI, a state-owned bank.

The system faced legal challenges from opposition members and civil society groups, who argued it impeded the public’s right to know about political funding. According to the Association for Democratic Reforms (ADR), a petitioner in the Supreme Court case, approximately 57% of the secret donations, totaling about $600 million, went to the BJP between 2018 and March 2022. ADR also found that individuals and companies purchased electoral bonds worth 165.18 billion rupees ($2 billion) until November 2023.