Electoral Bonds Case Hearing : Live Updates From Supreme Court

Bhushan: Then they amended the Companies Act. All these amendments were brought in through the Finance Bill of 2017.

Bhushan: Now see the amendment - the reporting requirement as to who has donated to you in excess of Rs 20,000 which was earlier there has been removed for donations received through electoral bonds.

Bhushan: Contribution to political parties are exempted at both ends- its exempted at the end of the party which receives it from tax and it is also exempted at the end of the donor.

CJI: What is the next challenge?

Bhushan: First is the amendment made to the Representation of People Act. Earlier the Act said the treasurer of the political party in each year prepare a report -- 

CJI: Strictly speaking, that has no relevance to the challenge to the Electoral Bonds Scheme.

Bhushan: True.

SG: Please see the 31st Jan order.

Bhushan: To overcome that a retrospective amendment was brought through the Finance Act into FCRA by saying that if the donation is made by a subsidiary of a foreign company- then that will not be treated to be a foreign source.

Bhushan: It was earlier totally prohibited from doing so. This amendment was in a way brought in order to overcome a judgement of the Delhi HC by which the court held that both the BJP and Congress had received foreign contributions through a subsidiary of a foreign company.

Bhushan: By this amendment, it has held that any contribution made by way of donation through a subsidiary of a foreign company registered in India will be permitted.

Bhushan: I want this case to be decided before elections. I am restricting myself to other grounds. I am challenging amendment in FCRA by way of finance bill. Prior to that amendment, the foreign contributions were prohibited to political parties and candidates and servants.

Bhushan: We are challenging the Amendments bought in FCRA by Finance Act in 2016. And the issue about whether they could have bought by Finance Act or not- I'm not pressing it.