Donations To Political Parties Surge Through Electoral Trusts After Ban On Electoral Bonds, BJP Biggest Beneficiary

Following the ban on electoral bonds, donations to political parties via electoral trusts have surged. The Prudent Electoral Trust received the largest share, with the BJP being the biggest beneficiary.

Donations to political parties have significantly increased through electoral trusts following the Supreme Court's decision last year to scrap electoral bonds. Reports from the Election Commission of India (ECI) for the previous financial year reveal a marked shift in funding patterns after the court’s ruling.

On February 15, 2024, the Supreme Court declared the electoral bonds scheme unconstitutional, ordering banks to cease issuing the bonds immediately. As a result, a considerable amount of funding has been channeled through electoral trusts, with the Prudent Electoral Trust receiving the largest share, Indian Express (IE) reported.

Of the Rs 1,075.7 crore donated to the Prudent Electoral Trust, Rs 797.1 crore was contributed after the Supreme Court's verdict in February. The trust’s contributions almost tripled compared to the previous year, with donations surging from Rs 363.16 crore to Rs 1,075.7 crore, as indicated in the report.

Top contributors to the Prudent Electoral Trust for the 2023-24 financial year included ArcelorMittal Nippon (Rs 100 crore), DLF (Rs 99.5 crore), Maatha Projects (Rs 75 crore), Maruti Suzuki (Rs 60 crore), and CESC (Rs 60 crore). The trust distributed the largest portion of its funds to the Bharatiya Janata Party (BJP), which received Rs 723.8 crore, followed by the Congress with Rs 156.35 crore, Bharat Rashtra Samithi (BRS) with Rs 85 crore, and YSR Congress with Rs 72.5 crore, as per IE.

Triumph Electoral Trust Logs Contributions Totalling Rs 132.5 Crore

Additionally, the Triumph Electoral Trust saw contributions totalling Rs 132.5 crore, of which Rs 130 crore came in after the Supreme Court’s ruling. This marked a significant increase from just Rs 0.5 crore donated through the trust the previous year. Major donors included Cholamandalam Investment (Rs 50 crore), CG Power Industrial (Rs 30 crore), and Coromandel International (Rs 25.5 crore). The trust allocated Rs 127.5 crore to the BJP and Rs 5 crore to the Dravida Munnetra Kazhagam (DMK), IE reported.

Meanwhile, the Jayabharat Electoral Trust, which had no donations the previous year, received Rs 9 crore this year. The contributions, made in September 2024, were from two companies — Lakshmi Machine Works (Rs 8 crore) and Super Sales India (Rs 1 crore). The BJP received Rs 5 crore, DMK received Rs 3 crore, and the All India Anna Dravida Munnetra Kazhagam (AIADMK) received Rs 1 crore.

These figures highlight the shift in political funding dynamics following the Supreme Court’s landmark decision on electoral bonds, with significant contributions now routed through electoral trusts.