In a significant shift in political funding, corporate houses and private entities heavily utilized electoral trusts to route donations to political parties during the 2024-25 financial year. Official records from the Election Commission of India reveal that nine active trusts facilitated this flow of funds, with contributions skyrocketing to Rs 3,811 crore, a massive jump from Rs 1,218.36 crore in the previous year.
Prudent Trust Dominates as BJP's Major Conduit
The data highlights a clear preference among donors for the Prudent Electoral Trust, which alone recorded contributions worth a staggering Rs 2,668.49 crore. The distribution from this trust shows a pronounced tilt, with the Bharatiya Janata Party (BJP) receiving the overwhelming majority. The BJP's share stood at nearly Rs 2,181 crore, which constitutes about 82% of the trust's total disbursements.
The Indian National Congress was a distant second, receiving Rs 216.34 crore (8%) through Prudent. Other significant beneficiaries included the Trinamool Congress (TMC) with Rs 92 crore, YSR Congress with Rs 88 crore, Telugu Desam Party (TDP) with Rs 40 crore, and the Aam Aadmi Party (AAP) with Rs 16.42 crore.
Corporate Giants Open Their Chequebooks
The filings, which include annual reports, donation details, and audit certificates, name India's biggest corporate groups as the primary funders. Leading the pack were companies from the Tata Group, which collectively donated Rs 915 crore. Jindal Steel and Power contributed over Rs 300 crore, while Mahindra & Mahindra donated Rs 160 crore.
Other notable corporate contributors included:
- DLF: Rs 100 crore
- Bharti Airtel: Rs 38.8 crore
- InterGlobe Aviation (IndiGo): Rs 40 crore
- Torrent Power: Rs 65 crore
- Dr Reddy's Laboratories: Rs 35 crore
The Trust Landscape and Post-Bond Era
Out of thirteen trusts that submitted their records, four reported no financial activity. The era following the Supreme Court's landmark decision in February 2024 to scrap the electoral bonds scheme has seen electoral trusts emerge as the new preferred channel for corporate political funding.
Three trusts—Prudent, Progressive, and New Democratic—accounted for a whopping 98% of all contributions made through this route. The Progressive Electoral Trust, funded by Tata companies, distributed Rs 757.6 crore to the BJP and Rs 77.3 crore to the Congress. It also gave Rs 10 crore each to a host of regional parties including TMC, YSR Congress, Shiv Sena, BJD, BRS, LJP (Ram Vilas), JDU, and DMK.
The New Democratic Electoral Trust, backed by Mahindra & Mahindra, donated Rs 150 crore to the BJP and Rs 5 crore each to the Congress and Shiv Sena (UBT).
The surge in donations through electoral trusts underscores a major transformation in India's political finance ecosystem. With increased scrutiny on funding sources, these trusts have become the central mechanism for corporates to support political parties, raising important questions about transparency and influence in the democratic process.
