Behind the doors of a small, non-descript office in the heart of New Delhi lies the headquarters of an electoral trust run by just two men that is the largest-known donor to India’s ruling Bharatiya Janata Party (BJP), Reuters’ review of public records showed.
The Prudent Electoral Trust has raised US$272 million since its creation in 2013, funnelling roughly 75 percent of that to Indian Prime Minister Narendra Modi’s party. The trust’s donations to the BJP total 10 times as much as the US$20.6 million it issued to the opposition, the Indian National Congress party, records show.
The previous Congress-led government introduced electoral trusts in 2013 to allow for tax-exempt contribution to parties. It said the mechanism would make campaign financing more transparent by reducing cash contributions, which are harder to trace. However, some election experts say the trusts contribute to opacity around the funding of political parties in India, where this year’s general election — due to be called within weeks — is expected to return Modi to power for a rare third term, polls showed.
While Prudent does not disclose how donations made by individual corporate donors are distributed, Reuters used public records from 2018 to last year to track flows from some of India’s largest companies.
Eight of India’s biggest business groups donated at least US$50 million in total between 2019 and last year to the trust, which then issued checks for corresponding amounts to the BJP, Reuters’ analysis showed.
Four companies whose transactions were identified by Reuters — steel giant ArcelorMittal Nippon Steel, telecom Bharti Airtel, infrastructure developer GMR and energy giant Essar — have not given money to the party directly and do not appear on its donors’ list.
Prudent determines how their donations are distributed, GMR and Bharti Airtel said in response to Reuters’ questions.
Prudent decides “as per their internal guidelines, which we are unaware of,” said a GMR spokesman, adding that the company does not “like to align with any political party.”
Bharti Airtel, which created Prudent before transferring control to independent auditors Mukul Goyal and Venkatachalam Ganesh in 2014, said it has “no influence on the decisions, directions and mode of disbursal of funds.”
Spokespeople for the other groups did not respond to calls, text messages and e-mails.
Goyal and Ganesh did not respond to questions sent via e-mail and post either. When asked on a brief phone call about how Prudent functioned, Goyal said: “That is something we do not discuss.”
Prudent — the largest of India’s 18 electoral trusts — is legally required to declare how much it has collected from each donor and the total amounts disbursed to each party. However, it is the only one among India’s four largest electoral trusts to accept contributions from more than one corporate group.
Trusts “provide one layer of separation between firms and parties,” said Milan Vaishnav, an expert on Indian campaign finance at the Carnegie Endowment for International Peace, a Washington-based think tank.
Political finance in India is widely seen as murky, with most political donations in India undisclosed, Vaishnav added. BJP said in its latest public disclosure in March last year that its political war chest — funds it had available including cash reserves and assets — was valued at 70.4 billion rupees (US$850 million). That gives it a colossal financial advantage over Congress, which had 7.75 billion rupees in funds.
BJP spokespeople did not respond to repeated requests for comment for this story.
The records show that Prudent was also the largest-known donor to the Congress party in the decade to March last year.
LAYER OF SEPARATION
Corporate contributions are “purely business transactions made with the intent of securing benefits in return,” India’s Supreme Court said in a February campaign finance ruling.
Reuters was unable to establish if political parties know the identities of donors that give through trusts that receive contributions from multiple groups.
M.V. Rajeev Gowda, head of research for Congress, told Reuters that electoral trusts are a “semi fig-leaf” and that he believed parties knew the donors’ identities. Gowda, who does not manage the party’s finances, did not provide evidence.
BJP’s next largest known donor is Tata Group’s Progressive Electoral Trust, which has given the party 3.6 billion rupees collected from the salt-to-airline conglomerate’s companies. Progressive is also Congress’ next largest donor, having given it 655 million rupees.
Progressive’s by-laws require it to distribute funds proportionate to the number of seats held by each party in parliament. Prudent has no similar restrictions and Reuters’ analysis of its donations found no such pattern.
NEAR-INSTANT TRANSFERS
Trusts are allowed to retain a maximum of 300,000 rupees for annual operating expenses. Remaining funds must be disbursed in the fiscal year they were received.
In its analysis of contribution reports filed by Prudent to electoral authorities, Reuters identified 18 transactions between 2019 and 2022 in which the eight corporate groups made large donations to the trust. Within days, Prudent issued checks for the same amounts to BJP. Before the 18 contributions, which are not exhaustive of all the donations made by the groups to Prudent, the trust did not have sufficient funds for the payments to BJP.
Companies tied to billionaire Lakshmi Mittal’s ArcelorMittal group were among Prudent’s most prolific donors.
For instance, on July 12, 2021, ArcelorMittal Design and Engineering Centre Private Ltd gave Prudent a check for 500 million rupees. The next day, Prudent issued a check to BJP for the same amount. ArcelorMittal Nippon Steel India also issued 200 million rupees to Prudent on Nov. 1, 2021, and 500 million rupees on Nov. 16, 2022. The respective sums were sent to BJP on Nov. 5, 2021, and Nov. 17, 2022.
A spokesperson for ArcelorMittal did not respond to requests for comment.
Meanwhile, Bharti Airtel issued 250 million rupees to Prudent on Jan. 13, 2022, and 150 million rupees on March 25, 2021. The trust sent out checks to BJP for those amounts on Jan. 14, 2023, and March 25, 2021.
Three companies in the RP-Sanjiv Goenka (RPSG) Group — Haldia Energy Ltd, Phillips Carbon Black and Crescent Power Solutions — cut checks for 250 million rupees, 200 million rupees and 50 million rupees on March 15, March 16 and March 19, 2021, respectively. On March 17, BJP received a check for 450 million rupees from Prudent, followed by a 50 million rupee check on March 20.
The RPSG Group did not respond to requests for comment.
Donations from Serum Institute of India and companies in GMR Group, DLF Ltd and Essar Group were moved to BJP immediately after Prudent received them.
Reuters was unable to identify a similar pattern of funds being sent to the trust and then transferred to Congress immediately afterwards.
However, Reuters found similar patterns involving two regional parties. Megha Engineering and Infrastructure Ltd transferred 750 million rupees to Prudent across three transactions on July 5 and July 6, 2022. The trust issued a 750 million rupee check on July 7 to Bharat Rashtra Samithi (BRS), a centrist party in Telangana state, where Megha Group is headquartered.
Property developer Avinash Bhosale Group, based in the western Maharashtra state, gave 50 million rupees to Prudent on Nov. 27, 2020. The trust issued a check for that amount to the Maharashtra Pradesh Nationalist Congress Party — which is independent of the Nationalist Congress Party (NCP) — on Nov. 30. The corporate groups did not immediately return requests for comment. BRS’ general secretary said he was “not aware” of specifics about the donations, while a senior NCP official said that the party had recently split and “every record will not be available with us.”
CAUSE OF CONCERN?
Public records and party reports show that BJP’s war chest has swelled since Modi became prime minister in 2014, from 7.8 billion rupees in March 2014 to 70.4 billion rupees as of March last year. Meanwhile, Congress’ funds increased from 5.38 billion rupees to 7.75 billion rupees in the same time period.
The financing gap between the BJP and Congress is a cause of concern, said Jagdeep Chhokar of the Association of Democratic Reforms, a Delhi-based civil society group that was the main petitioner behind the electoral bonds challenge in the Supreme Court.
“Level playing field is an essential part of democracy,” he said.
Some BJP officials have said in the past that the large sums it has raised on its books are an example of its transparency.
BJP has been the major beneficiary of electoral bonds, a mechanism that allowed donors to give unlimited amounts to parties without public disclosure. It received about 65.66 billion rupees of the 120.1 billion rupees worth of such bonds sold between their January 2018 introduction and March last year. Such bonds made up more than half the contributions received by the BJP in all but one fiscal year since their introduction.
The mechanism is “unconstitutional,” the Supreme Court said last month, ordering the government-owned State Bank of India, which issued the bonds, to release buyers’ details.
Specifics were set for release by Friday last week.
Additional reporting by Aditya Kalra, Kripa Jayaram and Sumanta Sen
From the Iran war and nuclear weapons to tariffs and artificial intelligence, the agenda for this week’s Beijing summit between US President Donald Trump and Chinese President Xi Jinping (習近平) is packed. Xi would almost certainly bring up Taiwan, if only to demonstrate his inflexibility on the matter. However, no one needs to meet with Xi face-to-face to understand his stance. A visit to the National Museum of China in Beijing — in particular, the “Road to Rejuvenation” exhibition, which chronicles the rise and rule of the Chinese Communist Party — might be even more revealing. Xi took the members
A Pale View of Hills, a movie released last year, follows the story of a Japanese woman from Nagasaki who moved to Britain in the 1950s with her British husband and daughter from a previous marriage. The daughter was born at a time when memories of the US atomic bombing of Nagasaki during World War II and anxiety over the effects of nuclear radiation still haunted the community. It is a reflection on the legacy of the local and national trauma of the bombing that ended the period of Japanese militarism. A central theme of the movie is the need, at
The Chinese Nationalist Party (KMT) and the Taiwan People’s Party (TPP) on Friday used their legislative majority to push their version of a special defense budget bill to fund the purchase of US military equipment, with the combined spending capped at NT$780 billion (US$24.78 billion). The bill, which fell short of the Executive Yuan’s NT$1.25 trillion request, was passed by a 59-0 margin with 48 abstentions in the 113-seat legislature. KMT Chairwoman Cheng Li-wun (鄭麗文), who reportedly met with TPP Chairman Huang Kuo-chang (黃國昌) for a private meeting before holding a joint post-vote news conference, was said to have mobilized her
Before the Chinese Communist Party (CCP) and its People’s Liberation Army (PLA) can blockade, invade, and destroy the democracy on Taiwan, the CCP seeks to make the world an accomplice to Taiwan’s subjugation by harassing any government that confers any degree of marginal recognition, or defies the CCP’s “One China Principle” diktat that there is no free nation of Taiwan. For United States President Donald Trump’s upcoming May 14, 2026 visit to China, the CCP’s top wish has nothing to do with Trump’s ongoing dismantling of the CCP’s Axis of Evil. The CCP’s first demand is for Trump to cease US
RSS