ADR moves Supreme Court to stop sale of electoral bonds

Context

Association for Democratic Reforms (ADR) has moved to Supreme Court to stop the sale of electoral bonds prior to the forthcoming Assembly elections in West Bengal and Tamil Nadu.

What is Electoral Bond?

• Electoral Bond is a bearer Banking Instrument (non refundable & non tradable) to be used for funding eligible Political Parties.
• Eligible political party is the one registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and secured not less than one per cent of the votes polled in the last General Election to the Lok Sabha or Vidhan Sabha.
• The Electoral Bonds shall be valid for Fifteen Calendar Days from the Date of Issue
• The Electoral Bonds can be redeemed only by an eligible Political Party by depositing the same in their Designated Bank Account maintained with Authorised Bank.
• The Electoral Bonds shall be issued in the denomination of Rs1000, Rs 10,000, Rs 1,00,000, Rs 10,00,000 and Rs 1,00,00,000.
• No cash payment to political parties is permitted for Electoral Bonds under any circumstances.

Who can purchase Electoral Bonds?

• Individual or Hindu Undivided Family
• Company or firm
• Association of Persons or a Body of Individuals, whether incorporated or not
• Artificial Juridical Person and Agency, Office or Branch owned or controlled by such person.