Last Updated: April 2026
The Supreme Court of India unanimous verdict striking down the Electoral Bonds Scheme on February 15, 2024 is one of the most significant constitutional law judgments in recent years — and a high-probability topic for CLAT 2026 current affairs.
What Was the Electoral Bonds Scheme?
Introduced in 2018 through the Finance Act, the Electoral Bonds Scheme allowed corporations to purchase bonds from SBI and donate anonymously to political parties. Only SBI knew who purchased the bonds; there was no cap on corporate donations.
The Supreme Court 5-Judge Constitution Bench Verdict
In Association for Democratic Reforms v. Union of India (2024), a 5-judge Constitution Bench led by CJI D.Y. Chandrachud unanimously struck down the Electoral Bonds Scheme. The Court held that voters have a fundamental right under Article 19(1)(a) to know about political funding sources.
Constitutional Law Dimensions for CLAT Aspirants
1. Article 19(1)(a) — Freedom of Speech and Expression
The Court expanded the scope of Article 19(1)(a) to include the right to information about political parties. Informed voting requires knowing who funds political parties.
2. Proportionality Test
Even if donor privacy has a legitimate aim, the means of complete anonymity is disproportionate and not the least restrictive option.
3. Basic Structure Doctrine
The judgment reinforced that free and fair elections form part of the Basic Structure of the Constitution (established in Kesavananda Bharati v. State of Kerala, 1973).
Key Cases — CLAT Context
| Case | Year | CLAT Significance |
|---|---|---|
| Kesavananda Bharati v. State of Kerala | 1973 | Basic Structure Doctrine established |
| Maneka Gandhi v. Union of India | 1978 | Expanded scope of Article 21 |
| PUCL v. Union of India | 2003 | Right to know candidate criminal background |
| ADR v. Union of India (Electoral Bonds) | 2024 | Right to know political funding — transparency in democracy |
Frequently Asked Questions
Was the Electoral Bonds Scheme declared unconstitutional?
Yes. The Supreme Court unanimously struck it down on February 15, 2024, holding it violated voters right to information under Article 19(1)(a).
Why is this important for CLAT 2026?
CLAT current affairs cover major Supreme Court verdicts, constitutional law developments, and governance topics. The Electoral Bonds case combines all three.
What is the Basic Structure Doctrine and why did the Court mention it?
The Basic Structure Doctrine (Kesavananda Bharati, 1973) holds that Parliament cannot amend features fundamental to the Constitution — including free and fair elections.
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