Scrapping electoral bonds may make funding transparent: India Inc execs
electoral bonds should make poll funding more transparent as payments can be declared in books of accounts. Others said the move may result in a greater role for cash.
Electoral bonds allowed companies and individuals to donate to political parties anonymously and without constraints. Some companies are worried that opposing political parties will now try and call them out on such funding and cause reputational harm. The Supreme Court has said State Bank of India, which was the sole issuer of the instrument, has to pass on details of all such purchases since 2019 to the Election Commission of India, which will make them public next month.
Several executives, speaking anonymously to ET, expressed concern about the potential for harassment once these details are known. The Supreme Court had cited the quid pro quo involved in companies funding parties. That shouldn't be considered unacceptable, said a leading promoter.
«The move is an idealistic stance but one that conflicts with practicality,» the person said. «World over, political parties are funded by those who do expect help in policies to further business which also does help growth of an economy. Large businesses have a lot at stake and when they write out a big cheque for elections — there are expectations, the relationship is such.»
«Liquor companies do not benefit out of using electoral bonds as states control the sector in terms of regulations, leaving little scope for the central government to influence and amend laws. So segments like mining or areas
