ASSOCIATION FOR DEMOCRATIC REFORMS Vs. UNION OF INDIA

JUDGEMENT

(1.) The provisions of Sec. 135 of the Finance Act, 2017 and the consequential amendments carried out in Sec. 31 of the Reserve Bank Of India Act, 1934; Sec. 137 of the Finance Act, 2017 and the corresponding amendment carried out in Sec. 29C of the Representation of the People Act, 1951; Sec. 11 of the Finance Act 2017 and the corresponding amendment carried out in Sec. 13A of the Income Tax Act, 1961; Sec. 154 of the Finance Act 2017 and the amendment carried out in Sec. 182 of the Companies Act 2013 and Sec. 236 o the Finance Act, 2016 and the corresponding amendment carried out in Sec. 2(1)(j)(vi) of the Foreign Contribution (Regulation) Act, 2010 have been challenged in this group of writ petitions.

(2.) The provisions of the statutes prior to amendment and subsequent thereto will require specific notice. Hence, for convenience the same are reproduced hereinbelow.

(3.) The Ministry of Finance, Department of Economic Affairs by Notification dtd. 2/1/2018 in exercise of powers under Sec. 31(3) of the Reserve Bank of India Act had promulgated a scheme called The Electoral Bond Scheme, 2018 whereunder an electoral bond has been defined as "a bond issued in the nature of promissory note which shall be a bearer banking instrument and shall not carry the name of the buyer or payee." The other provisions of the Scheme deal with the banks authorized to issue and encash the Electoral Bonds; persons entitled to purchase such bonds and the procedure for making an application for purchase of bonds and encashment of the said bonds. Clause 8 of the Scheme deals with the periodicity of the issue of bonds and states that the "bonds under this Scheme shall be available for purchase by any person for a period of ten days each in the months of January, April, July and October as may be specified by the Central Government. An additional period of thirty days shall be specified by the Central Government in the year of general elections of the House of People."