Big donors to electoral trusts: Tata to Mahindra, OP Jindal to L&T and Megha, Pg3

Key Highlights:

• In 2024-25, seven major corporate groups contributed over half (55%) of all donations received by electoral trusts, totaling Rs 2,107 crore.
• Total donations to political parties through electoral trusts reached Rs 3,811.37 crore in the last financial year.
• Prudent Electoral Trust was the largest trust, receiving Rs 2,668.46 crore, with 82% going to the BJP.
• The Tata Group emerged as the biggest political donor in 2024-25, donating Rs 915 crore through various companies to the Progressive Electoral Trust.

Detailed Insights:

• Electoral trusts became a primary funding channel for political parties after the Supreme Court abolished the electoral bonds scheme in February 2024.
• Prudent Electoral Trust received a significant contribution of Rs 500 crore from Elevated Avenue Realty, a real estate entity linked to the L&T Group.
• The Tata Group's donation of Rs 915 crore was distributed with approximately Rs 758 crore going to the BJP and around Rs 77 crore to the Indian National Congress.
• Megha Engineering and Infrastructures Ltd (MEIL) donated Rs 175 crore to the Prudent Electoral Trust, with its managing director, PV Krishna Reddy, donating an additional Rs 150 crore.

Key Concepts Involved:

• Electoral Trust: A non-profit company approved by the Central Board of Direct Taxes to collect donations from corporates and individuals and distribute it to political parties.
• Electoral Bonds: Interest-free bearer instruments used to donate money to political parties; the scheme was introduced to promote transparency in political funding but was later scrapped.
• Political Party Funding: The process by which political parties raise money to fund campaigns, administrative costs, and other activities.