Supreme Court Issues Notice to SBI's Response on Electoral Bond Anonymity

The Supreme Court has issued a directive to the State Bank of India (SBI) to clarify its stance on the anonymity provided by the unique alphanumeric codes on electoral bonds. This move is part of an ongoing legal discourse aimed at enhancing transparency in the electoral bond system.

The court's decision to question SBI's nondisclosure of the codes comes in the wake of a plea that highlights the need for transparency in identifying donors to political parties. Advocate Prashant Bhushan, representing the Association for Democratic Reforms (ADR), has indicated that further legal action may be pursued to ensure that each bond's unique number is disclosed, thereby linking donors to the political parties they support.

The issue gained prominence following the Election Commission's release of a list detailing bond purchasers. Prominent donors include major corporations such as Vedanta Ltd, Bharti Airtel, Essel Mining Ltd, Bajaj Auto Ltd, and DLF Ltd. According to SBI data shared with the Election Commission, donations totaling Rs 12,156 crore were made through the scheme from April 2019 to February 2024, with the top 20 donors contributing nearly half of this amount.

The majority of these top donors are involved in industries that are heavily regulated or dependent on government resources and approvals, spanning sectors such as mining, energy, telecommunications, pharmaceuticals, and construction. The Supreme Court's notice to SBI could potentially lead to a significant shift in the transparency of electoral funding in India.