Why Industry Needs A Say On Electoral Bonds Issue: Mukul Rohatgi To NDTV

The Supreme Court judgment on electoral bonds has not taken into account a key stakeholder, the industry, senior advocate Mukul Rohatgi told NDTV today, outlining the pitfalls that lie ahead once the full data on the bonds are submitted and made public.  

In an exclusive interview to NDTV, Mr Rohatgi said the first outcome could be victimisation of a company once the anonymity in political donations go.

"If somebody comes to know that I have paid a party, one group, and I have not paid the other party. The other party is going to say that if we are in power in some state, or if we come to power, we are going to take you to task," he said.

There is also the question of unscrupulous elements taking advantage of the situation.

Mr Rohatgi was present in court on Monday, representing industry bodies FICCI and CII and arguing that as stakeholders, the industry should have its say. But the judges asked him to follow the proper procedure instead of making oral submissions.

No industry -- by name, people or in a representative capacity -- was made party to the case, he told NDTV today. The exchange was between the Centre and those who filed the PIL, "Even the SBI (State Bank of India) came in much later," he said, underscoring the argument he made in court.

On February 16, the Supreme Court had scrapped the Electoral Bond Scheme, objecting to the unlimited and undisclosed funding through corporate donations, which, it said, comes with strings attached.

"Political contributors get access... this access leads to policy making... because of the nexus between money and voting. Financial supports to political parties can lead to quid pro quo arrangement," the bench led by Chief Justice of India DY Chandrachud had said.

The top court had called the scheme unconstitutional, saying information about funding of political parties is essential for voters to make electoral choices, since the system can lead to tweaking of the country's policies in favour of the donors.

While introducing the Electoral Bond Scheme, the government said it was meant to eradicate black money and clean up the system of political funding. Sources have said the government is now concerned about the return of black money, and has noted that revealing donors' identities is "against the laws of banking".

According to Election Commission data, 28,030 electoral bonds worth Rs 16,437.63 crore were sold between 2016 and 2022, with the BJP raking in over Rs 10,000 crore from that amount. The party that got the next highest was the Congress, with less than Rs 1,600 crore.