The Supreme Court (SC) ruled on Thursday on various arguments contesting the legality of electoral bonds, declaring that they violate the rights to information and freedom of speech and expression and that they should be declared unconstitutional.

On November 2 of last year, a five-judge Constitution bench led by Chief Justice of India (CJI) DY Chandrachud reserved its decision in the case.

As part of initiatives to increase political fundraising transparency, the government announced the program on January 2, 2018, and it was positioned as an alternative to monetary contributions given to political parties.

Only political parties registered under Section 29A of the Representation of the People Act, 1951 and those that received at least 1% of the total votes cast in the most recent elections to the Lok Sabha or a state legislative assembly are eligible to receive electoral bonds, per the scheme's provisions.

Similar to a promissory note or bearer bond, an electoral bond can be purchased by any individual, business, association, or enterprise as long as the buyer is an Indian citizen or has been incorporated or founded in India. The bonds are specifically intended to be used as a means of funding political parties.

The Center claimed in an affidavit that the Electoral Bonds program's methodology is a "completely transparent" way to support politics and that it is impossible to obtain unaccounted for or black money.