The electoral bond scheme came into effect due to the provisions of the Finance Act, 2017 which, among other things, amended the provisions of the Reserve Bank of India (RBI) Act, 1934, the Representation of the People Act, 1951, the Income Tax Act, 1961, and the Companies Act. 2013, the letter of the SCBA said.”Therefore, it would be perverse to doubt the legislative intention behind the scheme,” it appealed to the SC.If the Supreme Court prohibited the electoral bonds scheme, the prohibition should come into effect only prospectively, and not retrospectively, it said.Revealing the names of corporates that had contributed to different political parties would render them vulnerable to victimization. The possibility of them being singled out by those parties that had received less contribution from them, and harassed cannot be ruled out if the names of corporates and their quantum of contributions to various parties are revealed. This will be reneging on the promise given to them while accepting their voluntary contributions, the letter claimed.Disclosing such sensitive information, that too retrospectively, will result in chilling effect in corporate donations and participation in the democratic process. Besides drying up further donations, such an act would discourage and dissuade foreign corporate entities from setting up shop in India, the SCBA letter said.
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