Electoral Bonds Case Hearing : Live Updates From Supreme Court [Day 2]

CJI: So though at a certain level this is regulated by statute. If it is conferred by statute it can be taken away by statute. No implication of a fundamental right can arise

CJI: On one level, all this has been regulated by statutes. Right from 1956, the nature of regulation has been by statute. The only point is this- absent and enabling provisions in the statutes, namely the Companies Act, no company can donate for political purposes at all.

Hansaria: A company is now required to only declare that x amount has been donated without declaring which party they have donated to.

Hansaria: The substituted section omits the requirement of giving the particulars of the amount and the name of the party to which it has been contributed.

CJI: So the original Sec 182 had the requirement of 3 years of existence and 7.5% of average profit.

Hansaria: Contribution is limited to 5%. Now this provision continues till 2013 when another amendment comes for Companies Act. Sec 182 is the new section for the old 293A.

Hansaria: This ban was removed in 1985 by amending the Companies Act. No company which has existence of less than 3 years can donate. You cannot just create a shell company and contribute. Plus, the donation cannot exceed 5% of avg profit during 3 preceding FYs.

Hansaria: In 1969 a complete ban on corporate donations was imposed.

Hansaria: Now comes an amendment of this Section in 1969 which completely prohibits corporate donations. Till '60 there was no regulated field. '60 regulation is made. And now in '69...

Hansaria (reads Sec 239A of Companies Act as introduced in 1960): A complete cap of 5% or 20,000 rs was put. This is what a democracy needs. There is a provision for disclosure and transperancy also.