Faced with Action, Companies Bought Electoral Bonds Worth Billions
Three News Organisations Analyse Data on Political Donations
Newsreel Asia Insight #162
March 16, 2024
A significant number of companies, previously raided by central agencies, have been found purchasing electoral bonds in large amounts. This information has come after the Election Commission of India (ECI) disclosed political donations revealing the Bharatiya Janata Party (BJP) as the primary beneficiary, weeks before the 2024 Lok Sabha election.
Among the notable donors, Future Gaming and Hotel Services Pvt Ltd emerged as the largest contributor, with bonds worth 13.68 billion rupees, according to a report, published by The News Minute and part of a collaborative project involving two other news organisations, Newslaundry and Scroll, and independent journalists.
Megha Engineering and Infrastructure Ltd also featured prominently, purchasing bonds worth 9.6 billion rupees, according to Frontline. These contributions are significant, given the companies’ previous encounters with government agencies. Other major corporations that have participated in the electoral bonds scheme include Vedanta Ltd.
Hetero Pharma Group, a major pharmaceutical entity with a global footprint, came under the Income Tax Department’s scrutiny in October 2021. The raids unearthed unaccounted income of 5.5 billion rupees, with 1.4 billion rupees seized in cash. Following this, Hetero invested 600 million rupees in electoral bonds over two years, with purchases made at various intervals, including significant amounts before and after the company’s chairman received a Rajya Sabha ticket from the Bharat Rashtra Samithi.
The State Bank of India (SBI) reported that 22,217 electoral bonds were bought between April 2019 and February 2024, with the BJP receiving nearly 48% of the total redeemed bonds, amounting to 60.6 billion rupees. The Trinamool Congress and the Congress party followed as significant beneficiaries. Notably, the electoral bonds scheme, allowing anonymous political funding, was declared unconstitutional by the Supreme Court, citing a violation of voters’ rights to know the financiers of political parties.
The opposition has criticised the BJP for allegedly using central agencies to coerce companies into buying electoral bonds, suggesting a quid pro quo arrangement. The Congress party demanded a white paper on the BJP’s finances. The Supreme Court’s directive for the SBI to disclose bond details aims to enhance transparency, yet the full mapping of donors to recipients remains undisclosed, leaving the public questioning the integrity of the electoral bond system.
The acquisition of electoral bonds by companies post-government raids signifies a troubling trend in the political financing landscape of India. The fact that these companies turned to electoral bonds, a method allowing for anonymous donations, post-scrutiny by central agencies, suggests a possible correlation between government action and political contributions. This correlation could imply a coercive tactic or an understanding that financial contributions to political parties might favourably influence outcomes or mitigate legal troubles.
The dominance of the BJP in receiving electoral bond donations, particularly in the context of upcoming elections, points to a significant advantage that could skew the democratic playing field. The substantial financial backing from anonymous sources not only raises questions about the influence of money on political power but also about the accountability and transparency of the electoral process.
The involvement of high-profile companies and individuals in the electoral bonds scheme, and the subsequent lack of clarity on the end beneficiaries of these funds, suggest a broader issue of governance and ethical conduct in political financing.
It is imperative to scrutinise these developments critically, advocating for a system where democratic integrity is upheld, and the influence of money in politics is curtailed, ensuring a level playing field for all political entities.
