Trust Donations Surge Post Electoral Bond Ban: ECI Report

The Supreme Court’s ruling in February 2024 that declared the electoral bond scheme unconstitutional has redirected corporate political funding to electoral trusts. The Election Commission of India (ECI) reports a notable increase in contributions through these trusts in the last financial year.

Key Highlights from ECI’s Report

1. Prudent Electoral Trust Leads Contributions
   • Total Donations: Rs 1,075.7 crore (Rs 797.1 crore after February 15, 2024).
   • Year-on-Year Growth: A near threefold increase from Rs 363.16 crore in 2022-23.
   • Top Donors:
     • ArcelorMittal Nippon: Rs 100 crore
     • DLF: Rs 99.5 crore
     • Maatha Projects: Rs 75 crore
     • Maruti Suzuki: Rs 60 crore
     • CESC: Rs 60 crore
   • Beneficiaries:
     • BJP: Rs 723.8 crore
     • Congress: Rs 156.35 crore
     • Bharat Rashtra Samithi (BRS): Rs 85 crore
     • YSR Congress: Rs 72.5 crore
2. Triumph Electoral Trust Contributions Surge
   • Total Donations: Rs 132.5 crore (Rs 130 crore post-ban).
   • Year-on-Year Growth: From Rs 0.5 crore to Rs 132.5 crore.
   • Top Donors:
     • Cholamandalam Investment: Rs 50 crore
     • CG Power Industrial: Rs 30 crore
     • Coromandel International: Rs 25.5 crore
   • Beneficiaries:
     • BJP: Rs 127.5 crore
     • DMK: Rs 5 crore
3. Jayabharat Electoral Trust Sees First Donations
   • Total Contributions: Rs 9 crore in 2023-24 (previously nil).
   • Key Donors:
     • Lakshmi Machine Works: Rs 8 crore
     • Super Sales India: Rs 1 crore
   • Beneficiaries:
     • BJP: Rs 5 crore
     • DMK: Rs 3 crore
     • AIADMK: Rs 1 crore

Impact of the Supreme Court’s Ruling

The Supreme Court’s decision on February 15, 2024, marked a turning point in political funding. With electoral bonds banned, electoral trusts have become the primary medium for corporate donations to political parties.