Scrapping of electoral bond scheme evokes mixed reactions in corporate sector

Kolkata: The Supreme Court verdict scrapping the electoral bond scheme has evoked mixed reactions in the corporate sector.

Bharat Chamber of Commerce president N G Khaitan said he expected a limited impact on corporate funding in the upcoming general elections as many donations have already been made.

“The Lok Sabha elections are near and donations through electoral bonds have already been made to political parties. Its effect will be seen in future polls,” said Khaitan, who is also a senior partner in NG Khaitan and Co. and sits on the boards of directors of several companies.

“What kind of a donation? How will they make a donation? Maybe they will make a direct donation. We will have to wait for the new legislation,” he added.

The Supreme Court’s verdict specifically targeted the ‘quid pro quo’ element potentially associated with electoral bonds, where donations might be linked to future favours.

“I don’t know to what extent the particular issue will be tackled when a new legislation comes into force,” he said.

Mamta Binani, former president of the Indian Institute of Company Secretaries, said the decision to deter corporate funding will have a significant impact in elections.