Legal views split on disclosure of political donations by India Inc

Before the amendment the Act required a company to disclose any amount contributed to any political party along with the particulars of the amount donated and the name of the receiving party

The implications of the Supreme Court’s verdict on the electoral bonds scheme on India Inc’s annual disclosures about political donations and bond purchase remain unclear, with legal experts divided on the issue.

The apex court in its Thursday order declared the 2017 amendment to Section 182 of the Companies Act, which mandated non-disclosure of particulars on political contributions, as “unconstitutional”.

“Harmonised reading of the SC judgment with constitutional provisions would mean any financial statement of companies would now require a disclosure. This would, however, be applicable to donations made after February 15, 2024, when the SC’s order came into effect,” said Mukesh