Electoral Bonds Case Hearing : Live Updates From Supreme Court

Bhushan takes the bench through the Electoral Bonds scheme

Bhushan: Now shell companies can also donate. Earlier they couldn't because there was a 7.5% limit. Now that is removed. Noone will even know that a foreign company is funding a political party

Bhushan: If you are a subsidiary or a foreign company, and you own even 100% of the shares, provided it is within FEMA- it is not a foreign source.

Sr Adv Sibal: Today it is 95 or 75 for a parliamentary constituency - depending on state. And for state election it is 40 and 20.

Bhushan: One of the arguments of the government for the Electoral Bonds was that look- this goes through the bank. Therefore, it would reduce cash. All they had to do was pass an amendment saying that no candidate shall be allowed to take money from non banking channels.

Justice Gavai: What is the value of permissible limit?

Bhushan: 70 L or so. This limit is not adhered to, we all know that. Candidates sometimes spend 100 times in cash. ECI says that we can't catch them.

Bhushan: In just these 5 years, one party which has received the bulk of political funding by way of Electoral Bonds is getting more than 10 times the maximum permissible expenditure by its candidates!

Bhushan: The limit for spending on each candidate fixed by legislature is less than 1 cr per lok sabha constituency. If you set up candidates in all constituencies in country, the total amount that can be spent by candidates of any party is less than 500 crores in LS elections.

Bhushan: The amounts are so large! Just take the ruling party at the centre. The contribution by way of Electoral Bonds to just this one party is more than 5000 crores in a period less than 5 years

Bhushan: In the last 5 years since the electoral bonds were introduced- 2017-18 to 2021-22- the contribution to political parties by way of electoral bonds has far exceeded than any other method.