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Electoral Bonds
The Election Commission of India (ECI) released new information regarding electoral bonds purchased and redeemed by various entities. According to the EC data, DMK received ₹656.5 crore in electoral bonds, including ₹509 crore from Santiago Martin’s Future Gaming.
Here are the main points:
- BJP encashed a total of ₹6,986.5 crore in electoral bonds, with the highest amount of ₹2,555 crore received in 2019-20.
- TMC redeemed ₹1397 crores
- Congress redeemed ₹1,334.35 crore in electoral bonds.
- BJD, YSR Congress, and TDP encashed electoral bonds worth ₹944.5 crore, ₹442.8 crore, and ₹181.35 crore respectively.
- BRS emerged as the fourth largest recipient, receiving ₹1,322 crore in electoral bonds.
- Other parties such as SP, Akali Dal, AIADMK, and National Conference received ₹14.05 crore, ₹7.26 crore, ₹6.05 crore, and ₹50 lakh respectively through electoral bonds.
Additionally, it was revealed that Future Gaming and Hotel Services, the top purchaser of electoral bonds, donated ₹509 crore to DMK through this payment mode, as per the Election Commission data.
Suspicious Activity
The disparity in the amount of funds collected by political parties raises eyebrows, particularly when considering the stark contrast between Congress and Trinamool Congress (TMC). Despite Congress’s limited presence in just three states, its collection of 1334 crores appears suspiciously disproportionate. On the other hand, TMC, operating primarily in a single state, managed to amass a staggering 1397 crores in donations. This glaring incongruity becomes even more glaring when juxtaposed with the ruling Bharatiya Janata Party (BJP), which holds power in twelve states along with being the ruling party at the center. The sheer magnitude of resources flowing into Congress’s coffers, given its regional limitations, hints at underlying complexities in political financing that warrant closer scrutiny.
Some Scams
- Mundhra Scam (1958) – 1.26 crores
- Fodder Scam (1985) – 950 crores
- Stamp Paper Scam (1995) – 30000 crores
- Satyam Scam (2009) – 7000 crores
- NRHM Scam (2010) – 10000 crores
- Belekeri Port Scam (2010) – 50000 crores
- DIAL (2012) – 1.63 lakh crore
- Granite Scam (2014) – 16000 crore
- Coal Scam (2012) – 1.86 lakh crore
- Maharashtra Irrigation Scam (2009) – 70000 crore
- PnB Scam (2018) – 11600 crores
The recent case where in Anil Deshmukh had given a target of Rs.100 crores per month to be collected by Police officials in Mumbai. 100 crores from just one city!
Donors
Between April 2019 and January 2024, the top 10 purchasers of electoral bonds collectively accounted for over a third of the total donations in terms of value. Their combined bond purchases amounted to Rs 4,200 crore, representing 34.5% of the total bond value, as disclosed by the Election Commission of India (ECI) on Thursday. Notably, all of these top 10 donors are corporate entities.
The leading contributor among them is Future Gaming and Hotel Services, which procured electoral bonds worth Rs 1,208 crore. Additionally, Future acquired an extra Rs 160 crore through two separate entries under slightly different company names. Records from the Ministry of Corporate Affairs, accessed through Zauba Technologies, reveal the incorporation of a company on December 30, 1991, with an address in Coimbatore, Tamil Nadu. This entity remains active, having filed a balance sheet as recently as March 2022.
An email containing comprehensive inquiries was dispatched to the company on Thursday evening, but no response was received promptly. The remaining 40 entities in the top 50 donor list collectively contributed Rs 2,989 crore, constituting an additional 24.6% of the total donations. Conversely, the remaining 1,270 donors contributed less than the cumulative total of the top 50.
These 1,270 donors contributed a combined sum of Rs 4,967 crore, amounting to 40.9% of the total donations via electoral bonds. This figure represents less than half of the total donations amounting to Rs 12,156 crore, according to the most recent disclosures on electoral bond donors.
The data was made available on the ECI’s website, following a directive from the Supreme Court (SC), which highlighted concerns about the anonymity of bonds and the absence of donation limits. The SC stressed the need to retain donation limits and suspend the operation of the scheme, noting the potential disproportionate influence of corporations on policymaking if left unchecked.
A report by the Association for Democratic Reforms (ADR), based in New Delhi, raised questions about the prevalence of large denomination purchases of electoral bonds, suggesting a corporate bias. The report also pointed out a surge in the formation of new political parties following the introduction of the scheme, as highlighted in an October 2023 note.
The ADR report stated, “The reason for this proliferation of new parties undoubtedly raises suspicions regarding the government’s controversial electoral bonds and the unrestricted, anonymous corporate contributions… 94.25% or Rs 12,999 crore of the total bond value purchased were in denominations of Rs 1 crore, indicating corporate rather than individual purchasers.”
Conclusion
While the sum of 6700 crores may seem staggering to many, especially in the context of political donations, when juxtaposed against the magnitude of various scams, it pales in comparison. It underscores a larger reality: industrialists often contribute to political parties not solely out of altruism, but as a strategic investment in maintaining favorable relationships that can yield benefits in the future.
The infamous Nira Radia Tapes serve as a poignant example of this symbiotic relationship, where exchanges between corporate entities and politicians were laid bare, revealing the intricate web of influence and power dynamics at play. Thus, while the figure of 6700 crores may appear significant, it serves as a mere fraction of the broader landscape of political finance, where vested interests and mutual dependencies shape the contours of governance and policy-making
