What are the basis on which Supreme Court Struck down electoral bond scheme?
[1] Unlimited corporate donations violate free and fair elections: Electoral bonds also removed the earlier limits on how much of its profits a company could donate to political parties (7.5% of the average profits of the preceding three fiscal years). The scheme even allowed loss-making companies to make donations. This could have opened the door for shell companies to be formed with the purpose of channelling funds to political parties.
[2] Amendment to the Finance Bill: In most of the country, the central bank alone has the authority to issue currency such as notes and bonds. The Govt amended the RBI Act using a Finance Act, and allowed under a new clause 31(3), the central govt to authorise any scheduled bank to issue electoral bonds. This amendment to the Finance Act too has been struck down.
[3] Violate fundamental rights: The court held that the scheme by permitting anonymous political donations infringed upon the fundamental right to information under Article 19(1)(a) of the Constitution. It pointed out that such a right is not only restricted to fulfilling the freedom of speech and expression but plays a key role in furthering participatory democracy by holding the government accountable.
[4] Quid pro quo financial arrangements: It highlighted that economic inequality leads to differing levels of political engagement because of the deep association between money and politics. As a result, there is a legitimate possibility that financial contribution to a political party would lead to quid pro quo arrangements.
[5] Unbalancing the voters’ right to information with the right to privacy of donors: Initially, Section 29C of the RPA 1951, required parties to declare all contributions higher than ₹20,000, and specify whether they were received from individual persons or companies. However, the Finance Act, 2017, amended this provision to create an exception wherein such a requirement would not apply to donations received through electoral bonds. Earlier provision balances these two rights because donations below this threshold were far less likely to influence political decisions.
[6] Right to privacy can't be shield for major contributors: The Chief Justice held that the right to privacy of political affiliation does not extend to those contributions, which may be made to influence policies. It only extends to contributions made as a genuine form of political support- e.g. a student, a daily wage worker, an artist, or a teacher.
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[1] Unlimited corporate donations violate free and fair elections: Electoral bonds also removed the earlier limits on how much of its profits a company could donate to political parties (7.5% of the average profits of the preceding three fiscal years). The scheme even allowed loss-making companies to make donations. This could have opened the door for shell companies to be formed with the purpose of channelling funds to political parties.
[2] Amendment to the Finance Bill: In most of the country, the central bank alone has the authority to issue currency such as notes and bonds. The Govt amended the RBI Act using a Finance Act, and allowed under a new clause 31(3), the central govt to authorise any scheduled bank to issue electoral bonds. This amendment to the Finance Act too has been struck down.
[3] Violate fundamental rights: The court held that the scheme by permitting anonymous political donations infringed upon the fundamental right to information under Article 19(1)(a) of the Constitution. It pointed out that such a right is not only restricted to fulfilling the freedom of speech and expression but plays a key role in furthering participatory democracy by holding the government accountable.
[4] Quid pro quo financial arrangements: It highlighted that economic inequality leads to differing levels of political engagement because of the deep association between money and politics. As a result, there is a legitimate possibility that financial contribution to a political party would lead to quid pro quo arrangements.
[5] Unbalancing the voters’ right to information with the right to privacy of donors: Initially, Section 29C of the RPA 1951, required parties to declare all contributions higher than ₹20,000, and specify whether they were received from individual persons or companies. However, the Finance Act, 2017, amended this provision to create an exception wherein such a requirement would not apply to donations received through electoral bonds. Earlier provision balances these two rights because donations below this threshold were far less likely to influence political decisions.
[6] Right to privacy can't be shield for major contributors: The Chief Justice held that the right to privacy of political affiliation does not extend to those contributions, which may be made to influence policies. It only extends to contributions made as a genuine form of political support- e.g. a student, a daily wage worker, an artist, or a teacher.
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Decoding World Affairs
The Supreme Court on Thursday struck down the electoral bonds scheme, saying it violates the right to information and freedom of speech and expression under the Constitution. Now let's know why did Supreme Court struck it down?
How did government defend Electoral Bond Scheme in court?
[1] Legitimate Banking channels reduces Black Money in politics: The government’s main points in defence of the scheme was that it allowed any person to transfer funds to political parties of their choice through legitimate banking channels and helped prevent unregulated contributions through cash.
[2] Right to privacy of the donor: The Supreme Court in Puttaswamy case held that the Right to Privacy is a fundamental right protected under Article 21 and Part III of the Indian Constitution. Thus, it is important for the donor to secure privacy while donating to political party of his/her choice.
[3] Citizens did not have a right to know the party funding: Attorney General K.K. Venugopal claimed that “Their contention is that voters have a right to know. Right to know what? Voters do not need to know where money of political parties comes from.” It is so because political parties are not "public authority".
♛ Decoding World Affairs
[1] Legitimate Banking channels reduces Black Money in politics: The government’s main points in defence of the scheme was that it allowed any person to transfer funds to political parties of their choice through legitimate banking channels and helped prevent unregulated contributions through cash.
[2] Right to privacy of the donor: The Supreme Court in Puttaswamy case held that the Right to Privacy is a fundamental right protected under Article 21 and Part III of the Indian Constitution. Thus, it is important for the donor to secure privacy while donating to political party of his/her choice.
[3] Citizens did not have a right to know the party funding: Attorney General K.K. Venugopal claimed that “Their contention is that voters have a right to know. Right to know what? Voters do not need to know where money of political parties comes from.” It is so because political parties are not "public authority".
♛ Decoding World Affairs
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Decoding World Affairs
Why do people in Ladakh protesting? Let's decode it...
Why is Ladakh witnessing protests?
[1] Statehood for Ladakh: Protesters are calling for Ladakh's statehood to be reinstated after it was made a Union territory without a legislature in 2019.
[2] Sixth Schedule status for Ladakh: They are concerned of the lobbies in the mining industry who want to harm Ladakh through illegal mining. People of Ladakh are demanding constitutional rights in the face of 6th schedule to safeguard it. It was also promised by the govt.
[3] Two parliamentary seats in Ladakh instead of one: One of their demands is to increase political representativeness by ensuring parliamentary seats for both Leh and Kargil districts.
[4] Job security and early job recruitment: The demonstrators chanted slogans in favour of reservation in jobs for the people of Ladakh among others.
[1] Statehood for Ladakh: Protesters are calling for Ladakh's statehood to be reinstated after it was made a Union territory without a legislature in 2019.
[2] Sixth Schedule status for Ladakh: They are concerned of the lobbies in the mining industry who want to harm Ladakh through illegal mining. People of Ladakh are demanding constitutional rights in the face of 6th schedule to safeguard it. It was also promised by the govt.
[3] Two parliamentary seats in Ladakh instead of one: One of their demands is to increase political representativeness by ensuring parliamentary seats for both Leh and Kargil districts.
[4] Job security and early job recruitment: The demonstrators chanted slogans in favour of reservation in jobs for the people of Ladakh among others.
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Decoding World Affairs
Mitsotakis who inaugurates the annual Raisina Dialogue in Delhi, says that Israel’s war should not ‘weaken the resolve’ to realise the economic corridor. Let's look into it how would it benefit India...
Significances of the India-Middle East-Europe Economic Corridor (IMEC) for India
[1] Thwart to China’s BRI: IMEC is seen as a potential counter to China's BRI in the Eurasian region. It can serve to counterbalance China's growing economic and political influence. It would help India in balancing China efficiently without much investments.
[2] Exploring West Asia: After economic liberalization in 1991, India largely explored East Asia through Look East policy followed by Act East policy. Now, it is providing opportunity to extend cooperation beyond balancing west Asia.
[3] Potential strategic Role in Africa: The corridor's model could be extended to Africa, aligning with the US and EU's plan to develop a Trans-African corridor. It signifies India's intent to strengthen its engagement with Africa.
[4] Deepening relations with USA: It dispels the notion that India and the United States may collaborate in the Indo-Pacific but not in the Middle East. The project showcases how India and the U.S., along with Israel and the UAE, can partner in developing joint economic projects through forums like the I2U2.
[5] Bypassing neighbourhood syndrome: It would help in bypassing Pakistan’s veto over India’s overland connectivity to the Central Asia. It is so because Jabel Ali port in UAE is near to Chahbahar port developed in Iran with India's assistance. It may help in further connecting central Asia.
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[1] Thwart to China’s BRI: IMEC is seen as a potential counter to China's BRI in the Eurasian region. It can serve to counterbalance China's growing economic and political influence. It would help India in balancing China efficiently without much investments.
[2] Exploring West Asia: After economic liberalization in 1991, India largely explored East Asia through Look East policy followed by Act East policy. Now, it is providing opportunity to extend cooperation beyond balancing west Asia.
[3] Potential strategic Role in Africa: The corridor's model could be extended to Africa, aligning with the US and EU's plan to develop a Trans-African corridor. It signifies India's intent to strengthen its engagement with Africa.
[4] Deepening relations with USA: It dispels the notion that India and the United States may collaborate in the Indo-Pacific but not in the Middle East. The project showcases how India and the U.S., along with Israel and the UAE, can partner in developing joint economic projects through forums like the I2U2.
[5] Bypassing neighbourhood syndrome: It would help in bypassing Pakistan’s veto over India’s overland connectivity to the Central Asia. It is so because Jabel Ali port in UAE is near to Chahbahar port developed in Iran with India's assistance. It may help in further connecting central Asia.
♛ Decoding World Affairs
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Decoding World Affairs
Thousands of people marched through the freezing streets of Leh, braving the bitter cold, to demand statehood for Ladakh and protection under the 6th Schedule of the Constitution.
What are the Arguments in Favour of Ladakh's Demand for Inclusion in the 6th Schedule?
[1] Lack of Public Participation: After dilution of Article 370, Ladakh was designated as a Union Territory without a legislative assembly. Thus, the decision-making has shifted from public participation to bureaucratic processes.
[2] Ladakh’s Fragile ecosystem: Climate activists have flagged concerns regarding mining in the glacial ecology. People in Ladakh fear that if there are industries, each industry will bring lakhs of people and this fragile ecosystem cannot support so many people.
[3] Border sensitivity: Addressing the China-Pakistan axis necessitates strategic infrastructure development supported by the local community. It demands 6th schedule for the people in Ladakh.
[4] Preservation of Cultural Identity: Inclusion in the 6th Schedule would provide legal safeguards to protect Ladakh's unique cultural heritage and traditional customs. The 6th Schedule empowers tribal communities with a degree of autonomy in governance.
[5] Strengthening of Democratic Institutions: The establishment of autonomous councils under the Sixth Schedule would strengthen democratic institutions at the grassroots level, promoting inclusive governance and accountability.
♛ Decoding World Affairs
[1] Lack of Public Participation: After dilution of Article 370, Ladakh was designated as a Union Territory without a legislative assembly. Thus, the decision-making has shifted from public participation to bureaucratic processes.
[2] Ladakh’s Fragile ecosystem: Climate activists have flagged concerns regarding mining in the glacial ecology. People in Ladakh fear that if there are industries, each industry will bring lakhs of people and this fragile ecosystem cannot support so many people.
[3] Border sensitivity: Addressing the China-Pakistan axis necessitates strategic infrastructure development supported by the local community. It demands 6th schedule for the people in Ladakh.
[4] Preservation of Cultural Identity: Inclusion in the 6th Schedule would provide legal safeguards to protect Ladakh's unique cultural heritage and traditional customs. The 6th Schedule empowers tribal communities with a degree of autonomy in governance.
[5] Strengthening of Democratic Institutions: The establishment of autonomous councils under the Sixth Schedule would strengthen democratic institutions at the grassroots level, promoting inclusive governance and accountability.
♛ Decoding World Affairs
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Decoding World Affairs
Recently, the Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice informed the Lok Sabha that the Law Ministry has accepted its recommendation to establish regional benches of the Supreme Court across India. Let's look into it...
Why should India have regional benches of the Supreme Court?
[1] Speedy disposal of cases: The former Vice-President Venkaiah Naidu once in his speech has suggested that the Supreme Court institute four regional Benches to tackle the enormous backlog of cases, and to ensure their speedy disposal.
[2] Ensure equal opportunities: It has been pointed out that Article 39A says that the state shall ensure that the operation of the legal system promotes justice, on a basis of equal opportunity.
[3] Cost effective for litigants: It is obvious that travelling to New Delhi or engaging expensive Supreme Court counsel to pursue a case is beyond the means of most litigants.
[4] Increasing appeal rate: There was a correlation between geographical proximity to the Supreme Court and appeal rate. It is to be noted that the appeals from the High Court of Punjab and Haryana comprised a large portion of the total appeals, with no appeals from the High Courts of the North East.
👑 Decoding World Affairs
[1] Speedy disposal of cases: The former Vice-President Venkaiah Naidu once in his speech has suggested that the Supreme Court institute four regional Benches to tackle the enormous backlog of cases, and to ensure their speedy disposal.
[2] Ensure equal opportunities: It has been pointed out that Article 39A says that the state shall ensure that the operation of the legal system promotes justice, on a basis of equal opportunity.
[3] Cost effective for litigants: It is obvious that travelling to New Delhi or engaging expensive Supreme Court counsel to pursue a case is beyond the means of most litigants.
[4] Increasing appeal rate: There was a correlation between geographical proximity to the Supreme Court and appeal rate. It is to be noted that the appeals from the High Court of Punjab and Haryana comprised a large portion of the total appeals, with no appeals from the High Courts of the North East.
👑 Decoding World Affairs
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Decoding World Affairs
Recently, the Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice informed the Lok Sabha that the Law Ministry has accepted its recommendation to establish regional benches of the Supreme Court across India. Let's look into it...
Challenges associated with regional branches of the Supreme Court
[1] Dilute the prestige of SC: The Supreme Court has not agreed with the proposal, which in its opinion will dilute the sacrosanct nature of the Supreme Court.
[2] Break unitary character: A full court of the Supreme Court on the administrative side, headed by Chief Justice of India KG Balakrishnan, had turned down a plea seeking regional benches, and had said that dividing the Supreme Court would ‘break its unitary character.’
[3] Increase pendency of cases: With reduced costs involved in the litigation process and easier access, the introduction of regional benches could worsen the pendency.
[4] Differs in legal principles: With more benches in different regions, there will be more litigation, and in turn, the risk of a larger body of changing legal principles.
👑 Decoding World Affairs
[1] Dilute the prestige of SC: The Supreme Court has not agreed with the proposal, which in its opinion will dilute the sacrosanct nature of the Supreme Court.
[2] Break unitary character: A full court of the Supreme Court on the administrative side, headed by Chief Justice of India KG Balakrishnan, had turned down a plea seeking regional benches, and had said that dividing the Supreme Court would ‘break its unitary character.’
[3] Increase pendency of cases: With reduced costs involved in the litigation process and easier access, the introduction of regional benches could worsen the pendency.
[4] Differs in legal principles: With more benches in different regions, there will be more litigation, and in turn, the risk of a larger body of changing legal principles.
👑 Decoding World Affairs
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