Why has SBI not disclosed codes of bonds: SC
- The Supreme Court asked the State Bank of India (SBI) why it had not disclosed the unique alphanumeric numbers of individual electoral bonds to the Election Commission (EC) for publication on its official website.
Key Highlights
- Court had directed disclosure specifically of all the details of the electoral bonds, including date of their purchase, the amount, names of purchasers, the political parties which redeemed the bonds, etc.
- But the bank has not disclosed the numbers of the bonds purchased and encashed.
- The court issued a notice to the bank and listed the case for March 19.
‘No copies retained’
- In its judgment on February 15, the five-judge Bench had directed the EC to publish the confidential information submitted in the court, along with details of electoral bonds.
- However, the EC filed an application on March 14, saying that it had given the court the originals of the documents and not retained any copies.
Misgivings About the SC’s Judgment That Need to Be Addressed
- While hearing the SBI’s plea for an extension of the time frame to provide the information
- The court clarified that it had never asked for information on purchasers and recipients to be decoded and matched.
- A concern voiced by many is that shorn of details about who donated how much money through electoral bonds to which party, the disclosures are of little value.
- Further, apart from tracing out shell companies or fly-by-night operators, perusing the financial statements of donor companies will reveal if loss-making entities donated through electoral bonds.
- The anonymity guaranteed to donors was meant to incentivise them to move away from cash donations, which they preferred because of fear of “consequences from political opponents.
Prelims Takeaway
- Electoral bond
- SBI