Electoral Trusts Distribute Rs 3,826 Crore to Political Parties in FY 2024-25
A recent analysis conducted by the Association for Democratic Reforms (ADR) has uncovered significant details about political funding through electoral trusts in the financial year 2024-25. The report indicates that ten electoral trusts, which declared receiving contributions, amassed a total of Rs 3,826 crore from corporate entities and individuals. These trusts then distributed nearly the entire amount to various political parties, adhering to government regulations.
BJP Dominates Donations with 82.5% Share
The distribution of funds shows a stark concentration, with the Bharatiya Janata Party (BJP) accounting for 82.5% of the total donations, equivalent to Rs 3,157.6 crore. In contrast, the Indian National Congress received 7.8% or Rs 298.7 crore, and the Trinamool Congress (TMC) got 2.6% or Rs 102 crore. Additionally, nineteen other political parties collectively received Rs 267.9 crore, highlighting the uneven flow of electoral trust funds.
Compliance and Reporting by Electoral Trusts
Out of the twenty electoral trusts registered with the Central Board of Direct Taxes (CBDT), fifteen submitted their contribution details to the Election Commission (EC). Among these, ten trusts declared having received donations during the fiscal year. Government rules mandate that electoral trusts must distribute at least 95% of the total contributions received, along with any surplus from previous years, to eligible political parties, ensuring transparency in political financing.
Corporate Contributions Overwhelm Individual Donations
The analysis further reveals that corporate and business houses were the primary contributors, with 228 entities donating Rs 3,636.8 crore to the trusts. Individual contributions were significantly smaller, with nine individuals giving Rs 187.5 crore to Prudent Electoral Trust and three contributing Rs 8 lakh to Einzigartig Electoral Trust.
Top Donors and Their Impact
Elevated Avenue Realty LLP emerged as the highest donor, contributing Rs 500 crore. Following closely were Tata Sons with Rs 308.1 crore, Tata Consultancy Services Ltd with Rs 217.6 crore, and Megha Engineering & Infrastructure Ltd with Rs 175 crore. The top ten donors collectively gave Rs 1,908.8 crore, representing 49.9% of the total donations. All these major contributors directed their funds to Prudent, Progressive, and New Democratic Electoral Trusts, underscoring the concentration of political funding among a few key players.
This report sheds light on the critical role of electoral trusts in channeling substantial sums to political parties, with corporate donations playing a dominant role in shaping the financial landscape of Indian politics.
