Electoral Trusts Distribute Rs 3,826 Crore to Political Parties in FY 2024-25, BJP Dominates with 82.5% Share
A comprehensive analysis by the Association for Democratic Reforms (ADR) has unveiled that electoral trusts played a pivotal role in political funding during the financial year 2024-25. The report indicates that 10 electoral trusts declared receiving contributions totaling Rs 3,826.3 crore from corporate entities and individuals. These trusts subsequently distributed nearly the entire amount to various political parties across India.
Political Party Receipts from Electoral Trusts
The distribution of these funds reveals a significant concentration in favor of the Bharatiya Janata Party (BJP). The BJP accounted for a staggering 82.5% of the total donations, receiving Rs 3,157.6 crore. In contrast, the Indian National Congress secured 7.8% of the contributions, amounting to Rs 298.7 crore. The All India Trinamool Congress followed with 2.6%, translating to Rs 102 crore.
Additionally, 19 other political parties collectively received a total of Rs 267.9 crore from these electoral trusts. This data underscores the substantial financial inflows facilitated by these trusts to the political ecosystem.
Compliance and Regulatory Framework
The ADR report highlights that out of the 20 electoral trusts registered with the Central Board of Direct Taxes (CBDT), only 15 submitted their contribution details for FY 2024-25 to the Election Commission of India (ECI). Among these, merely 10 trusts reported receiving any donations during that fiscal year.
According to central government regulations, electoral trusts are mandated to distribute at least 95% of the total contributions received during the financial year, along with any surplus carried forward from previous years, to eligible political parties. This rule ensures that the majority of funds are channeled towards political activities rather than retained by the trusts.
Corporate and Individual Contributions
The analysis further details that 228 corporate and business houses contributed Rs 3,636.8 crore to electoral trusts in FY 2024-25. Simultaneously, 99 individuals and proprietors made contributions, with notable examples including nine individuals donating Rs 187.5 crore to the Prudent Electoral Trust and three individuals contributing Rs 8 lakh to the Einzigartig Electoral Trust.
Elevated Avenue Realty LLP emerged as the top donor, contributing Rs 500 crore to electoral trusts. It was followed by Tata Sons Private Limited with Rs 308.1 crore, Tata Consultancy Services Limited with Rs 217.6 crore, and Megha Engineering & Infrastructure Limited, which donated Rs 175 crore to various trusts.
The top 10 donors collectively contributed Rs 1,908.8 crore, accounting for 49.9% of the total donations received by the trusts. All these major donors directed their contributions to the Prudent, Progressive, and New Democratic Electoral Trusts.
Sectoral and Geographical Breakdown of Donations
The manufacturing sector dominated corporate contributions, accounting for Rs 1,063.12 crore, which constituted 27.78% of the total donations. The real estate sector followed as the second-largest contributor with Rs 629.1 crore (16.4%), while the communication/IT/telecom sector ranked third with Rs 451.8 crore (11.81%).
Geographically, Maharashtra emerged as the largest contributor state, with electoral trusts receiving Rs 1,225.4 crore from entities based there. It was followed by Telangana (Rs 358.2 crore), Haryana (Rs 212.9 crore), West Bengal (Rs 203.8 crore), and Gujarat (Rs 200.5 crore).
ADR Recommendations for Enhanced Compliance
In light of these findings, the ADR has issued a strong recommendation. The organization advocates for heavy penalties against those electoral trusts that have failed to respond to or comply with the guidelines circulated by the ECI. This recommendation aligns with the notifications issued by the ECI to the trusts, emphasizing the need for strict adherence to regulatory frameworks to ensure transparency and accountability in political funding.
The report serves as a critical examination of the flow of funds through electoral trusts, highlighting both the scale of contributions and the imperative for robust oversight to maintain the integrity of India's democratic processes.
