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Informist, Friday, Aug 2, 2024

 

--SC rejects special team probe for 'quid pro quo' in poll bond plan

--CONTEXT: SC on pleas alleging quid pro quo in electoral bond scheme

 

NEW DELHI – The Supreme Court today rejected petitions seeking a court-monitored probe by a special investigation team into suspected cases of "quid pro quo" involving political parties, corporations, and officials of investigating agencies that came to light after publication of data relating to electoral bonds. Earlier this year, the court ruled that the electoral bonds scheme for funding political parties was unconstitutional and struck it down.

 

A bench headed by Chief Justice of India D.Y. Chandrachud said the petitioners have options under the law to redress their grievances, and it would be premature and inappropriate for the court to intervene at this stage. Such intervention would suggest that normal remedies under the law lack efficacy, the chief justice said.

 

The court said matters for probing proceeds of crime or reopening income tax assessments would impinge upon the statutory functions of the authorities entrusted with making enquiries under the relevant laws. "Thus we are of the view that the constitution of a SIT (special investigation team) headed by a former SC (Supreme Court) judge or otherwise should not be ordered when remedies under law governing criminal procedure (are) not availed," the court said.

 

It said the petitions were filed on two assumptions, that there was a quid pro quo in cases where there was an award of contract or change in policy and that certain officials of investigative agencies were involved and so a probe by the normal process of law will not be fair or independent. "We have highlighted the underlying premise of submissions to indicate that these are assumptions at the present stage and would require the court to enter into a roving enquiry into purchase of electoral bonds, donations made to political parties, and arrangements made in the nature of quid pro quo," said the bench, also comprising Justice J.B. Pardiwala and Justice Manoj Misra.

 

The court said redress of individual grievances of petitioners would have to be pursued using appropriate remedies under the law. "Where there is a refusal to investigate, or a closure report has been filed, appropriate remedies can be taken under the law governing criminal procedure or, as the case may be, under Article 226 (of the Constitution)," it said. The court said it had entertained petitions challenging the electoral bonds scheme as there was an aspect of judicial review involved. But cases involving criminal wrongdoings should not be pursued under Article 32 of the Constitution when there are remedies available under the law.

 

The court was hearing four petitions in the case. One was by Common Cause and the Centre for Public Interest Litigation, the others by Jai Prakash Sharma, Sudip Narayan Tamankar, and Khem Singh Bhati.

 

Common Cause and the Centre for Public Interest Litigation said the electoral bond data released on the court's orders showed that various loss-making companies and shell companies donated huge sums to political parties. The data suggest that the bulk of the bonds were given in "quid pro quo" arrangements by corporations to political parties for getting contracts or licences "worth thousands and sometimes lakhs of crores (millions of rupees)" and other benefits from governments or the authorities that were in turn controlled by the political parties who received those bonds, the two organisations said.

 

They said donations also appeared to have been given in proximity to the action by probe agencies, raising suspicion that "protection" money was being paid to avoid action by various regulators. Bonds were also given as consideration for favourable policy changes, the petitioners said.

 

The remaining petitioners asked the court to direct the authorities to probe the source of funds donated by shell and loss-making companies to various political parties. They also sought the recovery of amounts donated to political parties as part of quid pro quo arrangements, where such donations were found to have been made from proceeds of crime.

 

Earlier this year, the court directed the Election Commission of India to publish the data of who donated how much to which political party through electoral bonds. In March, the commission published two sets of data with individual bond numbers. The list was exhaustive with thousands of companies collectively having donated about 122 bln rupees through electoral bonds since March 2018.

 

A look into the bond data shows that 10 companies, which donated over 1 bln rupees each, cumulatively donated over 30% of the total quantum, or 36 bln rupees. These companies donated to six political parties, with three of the top four donors funding more than one party.  End

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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