According to the analysis of the Association for Democratic Reforms(ADR), seven electoral trusts declared that they received contributions for 2020-21. They distributed Rs 258.4301 million to various political parties and received Rs 258.4915 cr from corporates and individuals.
According to the report, the BJP received Rs 212.05 Crore, or 82.05 Percent of all donations received by parties from Electoral Trusts.
Prudent Electoral Trust was one of the largest Electoral Trusts and donated Rs 209.00 crore towards the BJP. This is in contrast to the Rs 217.75 lakh it contributed in 2019-20. Jaybharath Electoral Trust donated Rs 2.35 crore of its total income in 2020-21 to the BJP. Prudent Electoral Trust donated to seven political parties — BJP, JDU, INC, NCP, RJD, AAP and LJP.
Among corporates, Future Gaming & Hotel Services contributed the highest amount worth Rs 100 crore among all donors of the Electoral Trusts, followed by Haldia Energy India Ltd with Rs 25 crore and Megha Engineering and Infrastructures Limited, which contributed Rs 22 crore to various Trusts.
“As many as 159 individuals have contributed to Electoral Trusts in 2020-21. Two individuals contributed Rs 3.50 crore to Prudent Electoral Trust, 153 individuals contributed Rs 3.202 crore to Small Donations Electoral Trust and three gave a total of Rs 5 lakh to Einzigartig Electoral Trust,” the report noted.
The top 10 donors have donated Rs 223,3 crore to Electoral Trusts. This represents 86.27 percent of all donations received by the trusts in 2020-21.
The Congress was given Rs 3.31 crore by Small Donations Electoral Trust. JDU received Rs 27,3 crore, or 10.45% percent of all donations received from the seven Electoral Trusts.
Other 10 political parties — INC, NCP, AIADMK, DMK, RJD, AAP, LJP, CPM, CPI and Lok Thanthrik Jantha Dal — received a total of Rs 19.23 crore collectively.
In its recommendations, ADR said: “Details of donors to these six Electoral Trusts remain unknown, thereby leading to speculation on whether donations to these trusts were only a means of getting tax exemption or a way to convert black money stashed in tax havens to white in India. It is important to disclose the names of donors to these Electoral Trusts that were established before the CBDT rules were in place. Also, the same rules which apply to those trusts formed after January 31, 2013, should also apply to the above-mentioned trusts so as to improve transparency.”
“The names of Electoral Trusts currently do not indicate the name of the company/ group of companies which set up the Trusts. It would be ideal to include in the name and address of the Electoral Trust the name of its parent company to increase transparency about information regarding corporations that fund political parties. Those Electoral Trusts, which have not responded to and complied with the guidelines circulated by the Election Commission should be heavily penalised as indicated in the notification issued by the EC to the Trusts,” it added.
ADR also recommended that all corporations make information about their political contributions public through their websites in order to increase transparency in the financing of political campaigns.