State Bank of India (SBI), the country’s largest lender, complied with the Supreme Court’s order on March 12 by submitting the electoral bond data to the Election Commission of India (ECI). This move comes after the Supreme Court’s directive on March 11, ordering SBI to disclose details of electoral bonds encashed by political parties.
The submission of electoral bond data marks a significant step towards transparency in political funding, a matter of paramount importance in a democratic society like India. SBI’s adherence to the court’s order underscores the commitment to upholding the rule of law and promoting accountability in electoral financing.
The Supreme Court’s dismissal of SBI’s request for an extension until June 30, 2024, to disclose the details of electoral bonds underscores the urgency of transparency in political funding. By mandating SBI to reveal the information by the close of business hours on March 12, the court has emphasized the need for expeditious compliance with its directives.
Failure to comply with the court’s directions could result in contempt action against the bank, highlighting the consequences of non-compliance with judicial orders. The court’s firm stance sends a clear message that adherence to legal obligations is non-negotiable, particularly in matters concerning electoral transparency and accountability.
A five-judge bench, led by Chief Justice of India DY Chandrachud, emphasized the importance of transparency in political funding during the hearing. The court instructed SBI to make a “plain disclosure” of the details as per its judgment, reflecting the judiciary’s commitment to promoting transparency and integrity in the electoral process.
Furthermore, the Election Commission is directed to publish the information shared by SBI by 5 PM on March 15, ensuring public access to crucial data on electoral financing. This transparency measure aligns with the principles of open governance and empowers citizens to make informed decisions about political processes.
During the hearing, the Supreme Court expressed dissatisfaction with SBI’s delay in compliance since its February 11 order. SBI cited practical difficulties in the decoding process of electoral bonds due to stringent measures to protect donor anonymity. The bank maintains that the retrieval of information from different silos and matching donor details would be a time-consuming exercise.
Meanwhile, the petitioner in the electoral bonds case, the Association for Democratic Reforms (ADR), and the Communist Party of India (Marxist) (CPI (M)), filed contempt petitions against SBI for non-compliance with the court’s order. This legal action underscores the importance of holding institutions accountable for fulfilling their legal obligations.
In February 2024, the Supreme Court annulled the electoral bonds scheme for political funding, citing violations of constitutional rights. The judgment directed SBI to submit bond details to the Election Commission by March 6. The EC was mandated to publish the list of beneficiaries by March 13, marking a significant milestone in the pursuit of electoral transparency.
Shares of SBI closed at Rs 759.40 apiece, down 1.82% on the BSE on Tuesday, reflecting investor sentiment amidst legal developments concerning electoral financing. The impact of judicial decisions on financial markets underscores the interconnectedness of legal and economic factors in shaping governance and accountability frameworks.