The Supreme Court of India, on February 15, 2024, declared the Electoral Bond Scheme unconstitutional, citing it violated the right to information under Article 19(1)(a) of the Constitution.

Initiated in 2018 by the Ministry of Finance, the scheme facilitated anonymous donations to political parties through bonds issued by the State Bank of India.

Unlike traditional donations, these bonds did not disclose the donor's identity. Critics raised concerns about potential corruption, backdoor lobbying, and the erosion of transparency.

Previously, under the Companies Act, 2013, companies were subject to limits and disclosure requirements when donating to political parties.

However, the Finance Act of 2017 removed these restrictions, allowing unlimited contributions without disclosure.

The court's ruling underscored the importance of transparency and accountability in electoral financing, addressing broader issues of democracy and governance.