DO ELECTORAL BONDS CONFLICT WITH CORPORATE GOVERNANCE?

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While introducing the much-debated electoral bonds scheme the then Finance Minister Arun Jaitley justified the rationale for anonymity. The Supreme Court is presently seized of the petitions challenging the various aspects of the law and the anonymous nature of the scheme. The government has been arguing that the scheme helps to eliminate black money in funding the elections. Petitioners are arguing that masking the identity of the contributors facilitates a nexus between the contributions and the favours that get extended in return, which should ideally be made transparent to the public. It is best to leave the evaluation of the contentions to the court and await the decision. The present article discusses another aspect less in the public view on this subject.

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