Corporate donations to political parties through electoral trusts saw a massive surge in the last financial year, with contributions tripling to a staggering Rs 3,811.37 crore. This significant jump follows the Supreme Court's decision to scrap the electoral bonds scheme in February 2024, making electoral trusts a primary channel for political funding.
Seven Corporate Giants Dominate Donations
A detailed analysis of contribution reports submitted to the Election Commission of India reveals that just seven major corporate houses were responsible for more than half of all funds channelled through these trusts. These groups, with significant interests in construction, real estate, manufacturing, and power, contributed a combined Rs 2,107 crore, which constitutes 55 per cent of the total corpus.
The key donors include the Tata Group, OP Jindal Group, Larsen & Toubro (L&T), Megha Engineering, Ashok Leyland, DLF, and the Mahindra Group. In the previous financial year (2023-24), only five trusts reported total contributions of Rs 1,218.36 crore, less than a third of the amount reported in 2024-25.
Top Trusts and Major Beneficiaries
Three electoral trusts dominated the fundraising landscape, accounting for a whopping 98 per cent of all contributions. These are the Prudent Electoral Trust, Progressive Electoral Trust, and New Democratic Electoral Trust.
The Prudent Electoral Trust emerged as the largest, receiving Rs 2,668.46 crore. The Bharatiya Janata Party (BJP) was the primary beneficiary, receiving Rs 2,181 crore, which is close to 82 per cent of the trust's total funds. The single largest contributor to this trust was Elevated Avenue Realty, a real estate entity linked to the L&T Group, which donated Rs 500 crore.
The Progressive Electoral Trust received the bulk of its funds from the Tata Group. Various Tata companies, including Tata Sons, TCS, Tata Steel, Tata Motors, and Tata Power, collectively donated Rs 915 crore. From this amount, approximately Rs 758 crore (83%) went to the BJP, while the Congress received a little over Rs 77 crore (8.5%). Eight other regional parties received Rs 10 crore each from this trust.
Notable Contributions from Infrastructure and Other Sectors
Megha Engineering and Infrastructures Ltd (MEIL), a major Hyderabad-based infrastructure conglomerate, donated Rs 175 crore to the Prudent Electoral Trust. Interestingly, MEIL was the second-highest donor under the now-defunct electoral bonds scheme. Separately, the company's managing director, PV Krishna Reddy, donated nearly Rs 150 crore to the same trust.
Other significant donations included Rs 160 crore from the Mahindra Group, Rs 157 crore from the OP Jindal Group, Rs 100 crore from DLF, and Rs 100 crore from Ashok Leyland.
The data underscores a clear shift in corporate political donation strategies after the abolition of electoral bonds, with electoral trusts becoming the preferred, transparent route as mandated by the Election Commission. The concentration of donations from a handful of corporates to a few major trusts highlights the evolving dynamics of political finance in India.
