The Supreme Court will start hearing today a batch of petitions challenging the electoral bonds scheme. A Constitution bench comprising Chief Justice of India DY Chandrachud, Justices Sanjiv Khanna, BR Gavai, JB Pardiwala and Manoj Misra will hear the matter.The case involves a batch of petitions challenging the amendments introduced by the Finance Act 2017 paving the way for the...
The Supreme Court will start hearing today a batch of petitions challenging the electoral bonds scheme.
A Constitution bench comprising Chief Justice of India DY Chandrachud, Justices Sanjiv Khanna, BR Gavai, JB Pardiwala and Manoj Misra will hear the matter.
The case involves a batch of petitions challenging the amendments introduced by the Finance Act 2017 paving the way for the anonymous electoral bonds scheme.The Finance Act 2017 introduced amendments in Reserve Bank of India Act, Companies Act, Income Tax Act, Representation of Peoples Act and Foreign Contributions Regulations Act to make way for the electoral bonds.
The petitions filed by NGOs Association for Democratic Reforms (ADR), political party Communist Party of India (Marxist) challenge the scheme results in making political fundings non-transparent as the electoral bond donors are kept anonymous. They also contend that the scheme facilitate corruption and money laundering by donation through shell companies. Refuting these contentions, the Centre stated that the scheme ensured that clean money comes to political parties through proper banking channels.
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Pasha: Policy is subject to doctrine of manifest arbitrariness if it is so absurd.
The matter will resume tomorrow
CJI: It's a matter of policy. You are saying that a company in China since China shares a land border- they cannot bid for a contract but they can buy an electoral bond... it's policy
Pasha: We are having an issue in Press currently of a news organisation receiving funds from China. So by this standard a country like China cannot invest into businesses in India through a separate route but it can fund a political party on a principle of quid pro quo?
Justice Gavai: That is for security of state.
Pasha: If security of the state is impacted if the company merely invests in manufacturing sector, is it not impacted if Chinese investment is coming into political parties?
Justice Gavai: That is for security of state.
Pasha: If security of the state is impacted if the company merely invests in manufacturing sector, is it not impacted if Chinese investment is coming into political parties?
Pasha: An investment from China into a manufacturing entity will not be treated at par as investment from elsewhere. But if the same country then purchases electoral bond, that is permitted.
Pasha: Please see this press note of 2020 by which it has been stipulated that any country which shares a land border with India - investment from such a country is treated on a diff footing from investment on any other country.
Pasha: Foreign entities aren't permitted to purchase Electoral bonds. But an Indian entity with foreign investments, even if it is 100% is permitted to purchase Electoral bonds. This is prohibited in the context of buisness but permitted in context of political parties.
Pasha: Hence the absurdity that certain sectors are prohibited from foreign investments- like atomic energy, defence, space; certain sectors are restricted to foreign investments like media. This company can't invest in those sectors but is allowed to fund a political party?
Pasha: This clause places all Indian corporate entities on a similar footing as foreign entities.