New Delhi/IBNS: In a landmark verdict months ahead of the Lok Sabha elections, the Supreme Court on Thursday struck down the electoral bonds scheme calling it "unconstitutional", media reports said.

The top court said the scheme violates the Right to Information and Section 19(1)(a).

"The Electoral bonds scheme has to be struck down as unconstitutional. It violates the right to information of citizens, about possible quid pro quo," the court remarked as quoted by NDTV.

The scheme, which was introduced during the Union Budget 2017-18, is a way to fund political parties in India.

In its order, the Supreme Court acknowledged that not all donations to political parties are made to change public policies as students and daily wagers contribute too.

However, the court said the contributions made by companies are "purely business transactions" and have greater influence on political processes.

The top court said as quoted by NDTV, "Before amendment, loss making companies were not able to contribute. The amendment does not recognize the harm of allowing loss-making companies to contribute due to quid pro quo.

"The amendment to Section 182 Companies Act is manifestly arbitrary for not making distinction between loss making and profit making companies."

Ahead of the 2019 Lok Sabha elections, the primary opposition party Congress had promised to quash electoral bonds if the party was voted to power.