Electoral Trusts Channel Rs 3,826 Crore to Political Parties in 2024-25, BJP Dominates with 82% Share
Electoral trusts disbursed a staggering Rs 3,826 crore to political parties during the 2024-25 financial year, with the ruling Bharatiya Janata Party (BJP) securing more than 82 percent of the total funds. This revelation comes from a comprehensive report released on Friday by the Association for Democratic Reforms (ADR), a non-governmental organization focused on electoral transparency.
Detailed Breakdown of Donations and Distribution
Analyzing contribution filings submitted to the Election Commission of India, ADR found that electoral trusts received Rs 3,826.34 crore and distributed Rs 3,826.35 crore in the fiscal year. This distribution aligns with regulatory requirements that mandate trusts to disburse at least 95 percent of their collections annually. Out of 20 registered electoral trusts, only 10 reported receiving donations, while reports from five trusts remained unavailable on the EC website more than three months after the submission deadline.
The BJP emerged as the primary beneficiary, receiving Rs 3,157.65 crore, which constitutes 82.52 percent of the total funds distributed. The Indian National Congress trailed far behind with Rs 298.78 crore (7.81 percent), followed by the All India Trinamool Congress with Rs 102 crore (2.67 percent). Nineteen other political parties collectively shared Rs 267.92 crore.
Key Trusts and Major Donors
Among the electoral trusts, Prudent Electoral Trust accounted for the largest outflow, distributing Rs 2,668.46 crore to 15 different parties. Progressive Electoral Trust donated Rs 914.97 crore to 10 parties. The ADR report highlighted that 228 corporate entities and business houses contributed Rs 3,636.82 crore during the year, while 99 individuals donated Rs 187.62 crore. The top 10 donors alone accounted for nearly half of the total contributions, amounting to Rs 1,908.86 crore.
Elevated Avenue Realty LLP emerged as the single-largest contributor with a donation of Rs 500 crore. Other significant donors included Tata Sons Private Limited (Rs 308.13 crore), Tata Consultancy Services Limited (Rs 217.62 crore), and Megha Engineering and Infrastructure Limited (Rs 175 crore).
Sector-Wise and State-Wise Contributions
By economic sector, manufacturing led the contributions with Rs 1,063.13 crore (27.78 percent of the total), followed by real estate at Rs 629.17 crore (16.44 percent), and the communication, IT, and telecom sector at Rs 451.86 crore (11.81 percent). Geographically, Maharashtra was the largest source state, contributing Rs 1,225.43 crore. It was followed by Telangana (Rs 358.25 crore), Haryana (Rs 212.9 crore), West Bengal (Rs 203.85 crore), and Gujarat (Rs 200.5 crore).
Transparency Concerns and Compliance Gaps
The ADR report flagged several transparency and compliance issues. Donor addresses were not disclosed for contributions worth Rs 1,065.20 crore, with the majority of these undisclosed funds going to Prudent Electoral Trust. Additionally, five of the 15 trusts that filed annual reports declared nil contributions, while reports from Swadeshi Electoral Trust, AB General Electoral Trust, PD General Electoral Trust, Janta Nirvachak Electoral Trust, and Independent Electoral Trust were missing from the EC portal.
In a notable discrepancy, Harmony Electoral Trust disbursed Rs 35.65 crore, approximately Rs 10 lakh more than it received during the year, raising questions about accounting practices.
Calls for Greater Accountability and Regulatory Action
Emphasizing the need for enhanced transparency, ADR called for strict action against trusts that fail to comply with Election Commission guidelines. The organization also urged mandatory public disclosure of corporate political donations through company filings to ensure greater accountability in the political funding ecosystem.
This report gains significance as it comes just a year after the Supreme Court of India struck down the electoral bonds scheme in February 2024. The court ruled that anonymous political funding violated voters' right to information, underscoring the ongoing debate around transparency in political finance.
