Megha Engineering, Serum Institute, ArcelorMittal top list of corporates in political funding through trusts, says ADR Report

Megha Engineering & Infrastructures contributed Rs 87 crore, the highest from among corporates, in political funding, through electoral trusts, during the year 2022-23.

Serum Institute of India came second with Rs 50.25 crore followed by ArcelorMittal Nippon Steel India’s Rs 50 crore.

Top 10 corporates donated Rs 332.26 crore to electoral trusts, which made up 90.66% of total donations received by trusts during 2022-23, according to a report by the nonprofit Association for Democratic Reforms (ADR). All the 10 donors gave funds to the Prudent Electoral Trust.


Thirty-nine corporates and business houses contributed Rs 363.71 crore to electoral trusts in 2022-23. While 34 of them contributed Rs 360.46 crore to Prudent Electoral Trust, the rest gave to Samaj Electoral Trust (Rs 2 cr), Paribartan Electoral Trust (Rs 75.50 lakh) and Triumph Electoral Trust (Rs 50 lakh). Eleven individuals also gave money to trusts.

Prudent donated Rs 256.25 crore to the BJP in 2022-23 as against Rs 336.50 crore it gave in 2021-22, while Samaj donated Rs 1.50 crore to the BJP in 2022-23. The Congress received Rs 50 lakh from Samaj. Prudent donated to four political parties, including the major ones like the BJP, BRS, YSR Congress and AAP.

The BJP received Rs 259 crore or 70.69% of the total donations received by all political parties from electoral trusts. The BRS got Rs 90 crore or a fourth of the total donations received by all parties from all five electoral trusts. Other three political parties including YSR Congress, AAP and the Congress together got Rs 17.40 crore.

EIGHT GOT NIL DONATION:
Eight of the 13 Electoral Trusts said that they did not receive any contribution in 2022-23. Two trusts said they did not get any donations between 2013-14 and 2022-23 while two others said they have not got any donation since their registration. Four trusts said they got contributions only once.

The contribution reports for 2022-23 of five out of 18 registered electoral trusts are not available on the website of the Election Commission of India even after two months since the deadline ended. These are: Janpragati, Janhit, Small Donations, JaiHind and Bhartiya Bhumi electoral trusts, the ADR report said.

The nonprofit has recommended to the Central Board of Direct Taxes (CBDT) that it withdraw the approval given to JaiHindi as it has never received any contribution since registration. The electoral trust scheme provides for withdrawal of CBDT approval if the trust has ceased its activities, or its activities are not genuine or are not carried out in accordance with the scheme.

The names of electoral trusts do not disclose the name of the company or the group of companies which set up these trusts. The ADR has suggested that the name of the parent company be included in the trust’s name for the sake of greater transparency about the details of corporates which fund political parties.

All corporates should disclose details of their political contributions through their websites or in annual reports for increased transparency in political financing, the ADR said.