Explained: Why India Inc. Fears Electoral Bond Disclosures
Top industry associations, FICCI, CII and Assocham, asked the Supreme Court for a deferral of details.
The disclosure of data on electoral bonds may be this poll season's hottest issue, but for Corporate India a revelation of details is becoming a headache. The role of corporate funding in polls is not new or unknown, but the spotlight on who has given which party funds is unnerving many in India Inc.
Top industry associations FICCI, CII and Assocham joined the Electoral Bond hearing on Monday seeking the top court's decision on revealing more details to be deferred. However, senior advocate Mukul Rohatgi was not allowed to intervene by the top court as the constitution bench had already passed the judgment.
Ultimately, the Supreme Court mandated yesterday that all unique numbers with each electoral bond should be put out in the public domain by Thursday.
What Is The Concern?
The reading of one of the applications explains India Inc's concern. The Assocham petition says, "Applicant believes in fostering a conducive environment for economic development, emphasises the importance of maintaining such confidentiality".
It goes on to say a "retroactive change in standards of review and disclosure violates the principles of certainty and predictability of law and therefore such disclosure ought not to be mandated".
The concerns go beyond veil of anonymity being lifted. A major worry is not about the general public learning who donated to whom, rather it is the fear of vindictive behaviour from political parties who got left out.
The top court clarified that it had put on notice all parties – donors, political parties, Election Commission and the nodal bank, SBI – when it passed the interim order on April 12, 2019.
The late Arun Jaitley, who made electoral bonds a reality had written in a blogpost in 2019, "Donors fear the consequences of their revealed identities being linked to a political party to whom they donated.".
The backlash is already being felt by a few. Executive Chairperson of Biocon, Kiran Mazumdar Shaw, has been fielding an online backlash ever since election commission data cited her contributions to political party Janta Dal (Secular). In a tweet, she clarified that electoral bonds were purchased in her personal capacity and given to all political parties
The corporate leader is also batting for the electoral bond system.
"We should not give up on electoral bonds as conceptually it was aimed to bring in white money into election funding. We need Electoral Bonds Version 2 that strikes the right balance of confidentiality and disclosure.” she said in an exclusive conversation with NDTV Profit.
This balance of confidentiality and disclosure would mean donor identities being public, but not the final link between which corporate funded which political party.
The Supreme Court has lifted the corporate veil; but for many business leaders, who will have to deal with political parties, the situation is akin to being stuck between a rock and a hard place.
