The Supreme Court in Association for Democratic Reforms v. Union of India (2024) struck down the Electoral Bond Scheme, declaring it unconstitutional for violating the right to information and electoral transparency. The judgment mandated immediate cessation of bond sales, disclosure of donor identities, and publication of complete electoral bond data by SBI. The Court held that anonymous political funding undermines democratic accountability and citizens' right to know funding sources of political parties, marking a significant victory for electoral transparency.

The Electoral Bond judgment represents a watershed moment in India's democratic jurisprudence, fundamentally reshaping political funding transparency. The Court's reasoning centered on Article 19(1)(a) - the right to information being integral to free speech and democratic participation. Citizens cannot make informed electoral choices without knowing who funds political parties. The judgment demolished the government's argument that anonymity prevents political victimization, instead emphasizing that transparency is democracy's cornerstone. The decision has profound implications: political parties must now operate with unprecedented financial transparency, corporate donors face potential backlash from opposing parties, and the entire political funding ecosystem requires restructuring. The Court's directive for complete data disclosure within weeks created immediate compliance challenges for SBI and political parties. This judgment aligns with global democratic norms where political funding transparency is considered essential for preventing corruption and undue influence. The decision also strengthens the Election Commission's role in monitoring political finance, potentially leading to more robust campaign finance regulations and enforcement mechanisms in future electoral cycles.