In a landmark decision, the Supreme Court termed the electoral bonds ‘unconstitutional’ , citing the scheme’s violation of citizens’ right to information. Chief Justice of India DY Chandrachud declared that the electoral bonds program was arbitrary and unconstitutional, and that it might result in a pay-for-play arrangement between donors and political parties.
The five-judge Constitution bench ruled that the program cannot be justified by its purported goals of combating black money and protecting donors’ privacy. The court stated that there are other ways to stop black money besides electoral bonds.

State Bank of India will immediately cease issuing these bonds, according to the Chief Justice of India, and provide details of donations made through this mode to the Election Commission of India. The poll body was asked to publish this information on its website by March 13. These particulars, including the date of purchase, name of the purchaser, denomination, and details of parties receiving contributions through electoral bonds, are to be submitted to the Election Commission of India (ECI) by March 6.

The five-judge bench, also comprising Justice Sanjiv Khanna, Justice BR Gavai, Justice JB Pardiwala and Justice Manoj Misra, came up with a unanimous decision.

The electoral bonds scheme was introduced in 2018 with the stated objective of blocking black money from entering the political system.