SC Orders SBI to Provide Full Electoral Bond Details; CMD to Submit Affidavit

18 Mar 2024 , 12:20 PM

On March 18, the Supreme Court directed the chairman and managing director of the State Bank of India (SBI) to submit an affidavit confirming the disclosure of all details related to electoral bonds. The five-judge bench, led by Chief Justice of India (CJI) DY Chandrachud, instructed SBI to file the affidavit by March 21, specifically seeking information on electoral bonds from April 2019 onwards.

Emphasizing the need for comprehensive disclosure, the court specified that SBI should include alphanumeric numbers and serial numbers, if applicable, of the bonds purchased. The CJI urged SBI to be forthcoming and impartial in its disclosure, stating, “Let SBI not be selective in disclosure, do not wait for orders, we believe that SBI will be candid and fair to the court.”

Consequently, the court issued a directive mandating SBI’s CMD to confirm through an affidavit that no documents pertaining to electoral bonds have been withheld from public disclosure.

Following the hearing, SBI’s shares experienced a significant decline, nearly reaching the day’s lowest point. The court clarified its decision not to require disclosure of electoral bond details prior to April 12, 2019, dismissing an application seeking such directions.

During the proceedings, senior advocate Harish Salve, representing SBI, informed the court that while the bank had no objections to disclosing electoral bond details, it had interpreted the order differently. The CJI reiterated the importance of transparency, urging SBI to proactively disclose all relevant information.

This development follows the Supreme Court’s notice to SBI on March 15 for failing to provide alphanumeric numbers on the bonds to the poll panel, despite previous judgments mandating such disclosure.

The Electoral Bonds Controversy:

In February 2024, the Supreme Court declared electoral bonds unconstitutional, citing their non-disclosure of funding information as a violation of citizens’ right to information. Subsequently, the court directed SBI to furnish all electoral bond-related data.

On March 4, SBI requested an extension until June 30 to disclose details of electoral bonds encashed by political parties. However, the court dismissed the plea, instructing SBI to share all information with the Election Commission (EC) by March 12, with publication by March 15.

Although SBI cited the need for time to match donors with political parties, the Supreme Court clarified that such matching was unnecessary. SBI complied with the court’s directive, providing electoral bond details to the EC on March 12, leading to their publication by the EC on March 14.

On March 17, the EC released further information on electoral bonds, including redemption amounts per political party, following an apex court order returning bond details submitted to it in November 2023 by the EC.