New Delhi: The Supreme Court’s ban on the electoral bonds scheme in February 2024 has shed light on the financial landscape of Indian politics. Audit reports filed with the Election Commission of India (ECI) reveal that regional political parties were the largest beneficiaries of the scheme, receiving significant donations before the ban.
Regional Parties Lead in Donations
Between March 31, 2023, and February 15, 2024, regional parties received massive contributions through electoral bonds. The All India Trinamool Congress (TMC) topped the list with ₹612.4 crore, followed by the Bharat Rashtra Samithi (BRS) at ₹495.5 crore.
Other regional parties also reported substantial amounts:
- Biju Janata Dal (BJD): ₹245.5 crore
- Telugu Desam Party (TDP): ₹174.1 crore
- YSR Congress Party (YSRCP): ₹121.5 crore
- Dravida Munnetra Kazhagam (DMK): ₹60 crore
- Jharkhand Mukti Morcha (JMM): ₹11.5 crore
- Sikkim Democratic Front: ₹5.5 crore
National Parties Trail Behind
Among national parties, the Aam Aadmi Party (AAP) was the only one to report donations through electoral bonds, declaring ₹10.1 crore under a broader category. The audit reports of the Bharatiya Janata Party (BJP) and Congress were unavailable on the ECI website, though previous disclosures suggest the BJP received the highest donations from electoral bonds.
Income and Expenditure
The BRS declared the highest total income among regional parties at ₹685.5 crore, followed by TMC at ₹646.4 crore and BJD at ₹297.8 crore. The YSRCP reported the highest expenditure at ₹295.8 crore, closely followed by the BRS at ₹254.9 crore.
Among national parties, the Bahujan Samaj Party (BSP) declared the highest income at ₹64.8 crore and the highest expenditure at ₹43.2 crore.
Electoral Trust Donations
With the ban on electoral bonds, donations through electoral trusts gained prominence. Prudent Electoral Trust (PET), the largest electoral trust, received ₹1,075.7 crore in FY24. The BJP received the largest share at ₹723.7 crore, while Congress received ₹156.4 crore.
Other recipients included:
- BRS: ₹85 crore
- YSRCP: ₹72.5 crore
- TDP: ₹33 crore
Top corporate donors to PET included ArcelorMittal Nippon Steel India and DLF, each contributing ₹100 crore.
Transparency in Donations
Unlike electoral bonds, electoral trusts are required to disclose all contributions and beneficiaries. However, the details of individual corporate donations to specific parties remain anonymous.
The Supreme Court’s decision to ban electoral bonds has highlighted the financial dependence of political parties on these contributions. While the scheme ensured anonymity, the rise of electoral trusts is bringing some transparency to political funding.
