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

Hegde: Each time there is a purchase of an electoral bond by a company, there has to be a resolution of board of directors - this isn't open to the public normally.

Hegde: Even under the current law, what is required is that no such contribution shall be made by a company to a political party unless a resolution authorising the making of such contribution is passed at a meeting of a director.

CJI: So it is 412 million Rupees.

Hegde: Yes, it is 41 crores.

Hegde: My client has gone through balance sheets of listed companies. Here, they don't even put in the profit-loss statement. They add "other expenses" and in that it includes rent, security etc & political contributions amounting to 273 & 412. This isn't 412 rs. It's in crores

Sr Adv Sanjay Hegde: The applicant is a shareholder in a company. Today whether it is a sum of 1 cr or 10 cr all that is required is that one page- in a brief envelope. That brief envelope can go on for 15 days. This is currency of power.

Hansaria: Internationally this is a very difficult subject. There is a study by council of Europe which has 46 member countries which has raised serious concerns about anonymity of corporate funding.

CJI: The actual contributor is not necessarily the person who is purchasing the electoral bonds through banking channels.

Hansaria: Not at all

CJI: But the person who is aggregating and actually contributing 500 crores- all that they have to do is to trade electoral bonds, pay cash.

Hansaria: Yes, he is ultimately paying cash

CJI: Say a contribution has to be made of 500 crores to a party. Technically, you can find 500 people who would each make a contribution of 1 cr. Each of those persons get an exemption of 1 cr, a deduction of that 1 cr. Political party is exempt.

Hansaria: An artificial distinction is being between a bank transfer by an honest corporate who wants to show that yes, I've made this contribution and another who wants to be anonymous. There is no intelligible differentia- both are bank transfers.