India’s Supreme Court on Thursday struck down a scheme that allows individuals and companies to fund political parties anonymously and without limit, saying it violates the right to information and the freedom of speech and expression under the constitution.

The apex court also ordered the government-owned State Bank of India, the country’s largest commercial bank, to disclose to the Election Commission the names of the contributors to the six-year-old scheme.

A five-judge constitution bench headed by Chief Justice DY Chandrachud delivered two separate and unanimous verdicts on the pleas challenging the electoral bond scheme introduced six years ago, delivering a major blow to the Indian government.

Pronouncing the verdict, the chief justice said the scheme is violating the freedom of speech and expression under Article 19(1)(a) of the constitution.

The bench said the fundamental right to privacy also includes citizens’ right to political privacy and affiliation.

It directed that the banks issuing the bonds stop issuance of the same and the State Bank of India submit details of electoral bonds purchased from 12 April 2019 to date to the Election Commission.

The top court on 2 November last year reserved its verdict in the matter.

The scheme, which was notified by the government on 2 January 2018, was pitched as an alternative to cash donations made to political parties as part of efforts to bring transparency to political funding.

According to the provisions of the scheme, electoral bonds may be purchased by any citizen of India or entity incorporated or established in the country.

An individual can buy electoral bonds, either singly or jointly with other individuals without disclosing their identity.

Critics have said this eliminates transparency in electoral funding and gives an edge to the ruling parties.