SC flags possible misuse of funds received through electoral bonds

New Delhi: The Supreme Court Wednesday flagged the issue of possible misuse of funds received through electoral bonds by political parties for illegal purposes like terrorism and asked the Centre whether there was any control over how these funds were put to use.

A bench headed by Chief Justice S A Bobde told Attorney General K K Venugopal that the government should look into this issue of possible misuse of funds received through electoral bonds for illegal purposes like terrorism.

What is the control of the government on how the money is put to use, the bench, also comprising Justices A S Bopanna and V Ramasubramanian, asked Venugopal.

The bench reserved order on an application seeking a direction to the Centre and others not to open any further window for sale of electoral bonds ahead of the upcoming assembly elections and also during the pendency of a PIL pertaining to funding of political parties and alleged lack of transparency in their accounts.

During the hearing, the top court said suppose a political party wants to encash electoral bonds and finance a protest, what is the government's control on how this fund is put to use.

The funds can be misused for illegal purposes like terrorism. We would like you, as the government, to look into this aspect, the bench said, adding that political parties may use these funds for activities beyond their political agenda.

If a political party receives electoral bonds worth Rs 100 crore, what is the assurance that it won't be used for illegal purpose or fund violence, the bench observed.