Electoral Bonds Case Hearing : Live Updates From Supreme Court

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.