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The government has amended the Electoral Bond Scheme, 2018. The Ministry of Finance on November 7, 2022, issued a notification for amending the scheme to provide “an additional period of 15 days” for their sale “in the year of general elections to the Legislative Assembly of any States or Union Territories with Legislature”. The bonds under this scheme are usually made available for purchase by any person for a period of ten days each in the months of January, April, July, and October, when specified by the Union Government. The original scheme had provided for an additional period of thirty days, as specified by the Government, in the year when Lok Sabha elections are held, while the amendment adds another 15 days.
Since Assembly elections to various States and Union Territories are held every year, the amendment effectively means that there will be 15 additional dates annually during which the bonds can be sold. Immediately after issuing the notification, the Union Government also announced the sale of electoral bonds under the 23rd tranche from the authorised branches of the State Bank of India. The notification said the sale of bonds would take place through the 29 authorised branches of the said bank from November 9 to November 15, 2022. Like in previous rounds of sale, the electoral bonds shall be valid for 15 calendar days from the date of issue and no payment shall be made to any payee political party if the bond is deposited after expiry of the validity period. The Electoral Bond deposited by an eligible political party in its account shall be credited on the same day.
[Extracted, with edits and revisions, from “Electoral Bonds Scheme Amended To Allow Sale for Additional 15 Days in Assembly Election Years”, by Gaurav Vivek Bhatnagar, The Wire]
Since Assembly elections to various States and Union Territories are held every year, the amendment effectively means that there will be 15 additional dates annually during which the bonds can be sold. Immediately after issuing the notification, the Union Government also announced the sale of electoral bonds under the 23rd tranche from the authorised branches of the State Bank of India. The notification said the sale of bonds would take place through the 29 authorised branches of the said bank from November 9 to November 15, 2022. Like in previous rounds of sale, the electoral bonds shall be valid for 15 calendar days from the date of issue and no payment shall be made to any payee political party if the bond is deposited after expiry of the validity period. The Electoral Bond deposited by an eligible political party in its account shall be credited on the same day.
[Extracted, with edits and revisions, from “Electoral Bonds Scheme Amended To Allow Sale for Additional 15 Days in Assembly Election Years”, by Gaurav Vivek Bhatnagar, The Wire]
Question: 1
Assad buys an electoral bond worth ₹ 1,00,000/- on November 9, 2022 and plans to give the bond to the Popular People’s Party (the “PPP”), which he has been supporting for many years. On November 10, he must travel out of station on some urgent business, and he only hands the bond over to a representative of the PPP on November 14, 2022. The PPP’s representative deposits the bond in the Party’s account on November 16, 2022, but the bank refuses to credit the bond to the party’s account, on the grounds that it was no longer valid. Is the bank correct?
Assad buys an electoral bond worth ₹ 1,00,000/- on November 9, 2022 and plans to give the bond to the Popular People’s Party (the “PPP”), which he has been supporting for many years. On November 10, he must travel out of station on some urgent business, and he only hands the bond over to a representative of the PPP on November 14, 2022. The PPP’s representative deposits the bond in the Party’s account on November 16, 2022, but the bank refuses to credit the bond to the party’s account, on the grounds that it was no longer valid. Is the bank correct?
Updated On: Jul 9, 2024
- No, since Assad was a long-time supporter of the PPP
- Yes, since the bonds were only issued from November 9 to November 15, 2022 and were invalid after that.
- Yes, since the party representative had not deposited the bond with an authorised branch of the bank.
- No, since the bond was valid on November 16, 2022.
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The Correct Option is D
Solution and Explanation
The correct option is (D): No, since the bond was valid on November 16, 2022.
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Question: 2
The Government announces that there would be a sale of a 24th tranche of electoral bonds on February 10, 2023, for a period of 15 days, since elections to the Legislative Assembly of some States are scheduled for that year. Since there are no elections to the Lok Sabha or the Legislative Assembly of the State in which Assad resides, he claims that the Government does not have the power to issue this 24th tranche of electoral bonds in 2023. Is he right?
The Government announces that there would be a sale of a 24th tranche of electoral bonds on February 10, 2023, for a period of 15 days, since elections to the Legislative Assembly of some States are scheduled for that year. Since there are no elections to the Lok Sabha or the Legislative Assembly of the State in which Assad resides, he claims that the Government does not have the power to issue this 24th tranche of electoral bonds in 2023. Is he right?
Updated On: Jul 9, 2024
- No, since the changes to the Electoral Bond Scheme, 2018 mean that electoral bonds can be issued for an additional period of 15 days in any year, regardless of whether any elections are scheduled that year.
- Yes, since no elections were scheduled for Assad’s state in that year.
- Yes, since the Government had already sold some bonds in the 23rd tranche in 2022
- No, since the changes to the Electoral Bond Scheme, 2018 provide that electoral bonds can be issued for an additional period of 15 days in years when there is an election to the Legislative Assembly of a State.
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The Correct Option is D
Solution and Explanation
The correct option is (D): No, since the changes to the Electoral Bond Scheme, 2018 provide that electoral bonds can be issued for an additional period of 15 days in years when there is an election to the Legislative Assembly of a State.
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Question: 3
On November 10, 2022, Palak purchases an electoral bond from a branch of the State Bank of India, and hands it over to a representative of the PPP. The next day, the PPP announces that it has changed its candidates for the upcoming elections in Palak’s State. Upset at this news, she tells a PPP representative that she would like her bond back. The representative tells her that the bond has already been deposited, and that the money has been credited to the party’s account. Palak claims that since the period of validity of the bonds has not expired, she has the right to get her bond back from the party. Is she right?
On November 10, 2022, Palak purchases an electoral bond from a branch of the State Bank of India, and hands it over to a representative of the PPP. The next day, the PPP announces that it has changed its candidates for the upcoming elections in Palak’s State. Upset at this news, she tells a PPP representative that she would like her bond back. The representative tells her that the bond has already been deposited, and that the money has been credited to the party’s account. Palak claims that since the period of validity of the bonds has not expired, she has the right to get her bond back from the party. Is she right?
Updated On: Jul 9, 2024
- No, since Palak cannot ask for the bond back once she has given it to a political party.
- No, since the party had already deposited the bond, and the money had been credited to its account.
- Yes, since Palak bought the bond with her own money, and has the right to ask for it back.
- Yes, since the PPP changed its candidates, and Palak may no longer support the party.
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The Correct Option is B
Solution and Explanation
The correct option is (B): No, since the party had already deposited the bond, and the money had been credited to its account.
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Question: 4
On November 15, 2022, the Government issues another notification, announcing that from that date onwards, only political parties that have received at least 1% of the votes polled in the last elections to the Lok Sabha, or the last elections to the Legislative Assembly of a State, would be eligible to receive and deposit electoral bonds. In the sale of the 24th tranche of electoral bonds, Palak decides to give the electoral bonds she has purchased to the newly formed More Popular People’s Party (the “MPPP”), which is likely to win the first elections it would be contesting, in July 2023. Is the MPPP eligible to receive the electoral bonds?
On November 15, 2022, the Government issues another notification, announcing that from that date onwards, only political parties that have received at least 1% of the votes polled in the last elections to the Lok Sabha, or the last elections to the Legislative Assembly of a State, would be eligible to receive and deposit electoral bonds. In the sale of the 24th tranche of electoral bonds, Palak decides to give the electoral bonds she has purchased to the newly formed More Popular People’s Party (the “MPPP”), which is likely to win the first elections it would be contesting, in July 2023. Is the MPPP eligible to receive the electoral bonds?
Updated On: Aug 4, 2024
- Yes, since it is likely to succeed in the upcoming elections
- Yes, since it fulfils the criteria announced in the November 7, 2022 notification.
- No, since it does not fulfil the eligibility criteria announced in the November 15, 2022 notification.
- No, since it does not fulfil the eligibility criteria announced in the November 7, 2022 notification.
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The Correct Option is C
Solution and Explanation
The correct option is (C): No, since it does not fulfil the eligibility criteria announced in the November 15, 2022 notification.
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Question: 5
Abraham, who lives in a different State from Assad, purchased an electoral bond in the sale of the 23rd tranche. He decides to give the electoral bond to the PPP, even though the PPP is only active in Assad’s State. When the PPP representative goes to an authorised branch of the State Bank of India to deposit the electoral bond on December 5, 2022 however, the bank refuses to credit the money to the PPP’s account. Which of the following would be the most valid reason for the bank to refuse to credit the money to the party’s account?
Abraham, who lives in a different State from Assad, purchased an electoral bond in the sale of the 23rd tranche. He decides to give the electoral bond to the PPP, even though the PPP is only active in Assad’s State. When the PPP representative goes to an authorised branch of the State Bank of India to deposit the electoral bond on December 5, 2022 however, the bank refuses to credit the money to the PPP’s account. Which of the following would be the most valid reason for the bank to refuse to credit the money to the party’s account?
Updated On: Jul 9, 2024
- The bond was no longer valid.
- Abraham could not give the bond to the PPP since the PPP was not active in his state.
- The PPP was not eligible to receive electoral bonds
- The PPP could only deposit the bond in a bank branch located in Abraham’s state.
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The Correct Option is A
Solution and Explanation
The correct option is (A): The bond was no longer valid.
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[Extracted with edits and revisions from “What laws regulate surrogacy in India”, The Indian Express]- CLAT - 2023
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[Extracted from “First, get the tech: Unless India develops domestic AI heft, it wouldn’t play any meaningful part in global regulatory efforts”, Times of India]- CLAT - 2024
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