India’s electoral funding architecture has long drawn criticism for lacking transparency and accountability. While the now-defunct Electoral Bonds have hogged headlines for being a major source of anonymous funding, an older and still-functioning system of Electoral Trusts continues to quietly channel vast sums of money into political parties with limited public scrutiny.
While Electoral Bonds have rightly been declared unconstitutional by the Supreme Court in 2024, Electoral Trusts have resurfaced as the primary legal tool for corporate donations to political parties, again raising serious concerns over opaque funding and disproportionate political influence by big business.
What Are Electoral Trusts?
Electoral Trusts are non-profit organizations registered with the Election Commission of India (ECI) that are legally allowed to collect voluntary contributions from individuals and companies and distribute them to registered political parties. The framework was formalized under the Companies Act and the Representation of the People Act, ostensibly to bring more transparency to corporate political donations.
But while the intent was noble, in practice, these trusts have become intermediaries that shield the identity of donors from the general public, often leaving voters in the dark about who finances whom and why.
How Do Electoral Trusts Work?
Companies donate funds to an Electoral Trust.
The Trust aggregates these funds and distributes them to political parties.
Political parties are required to declare only donations above ₹20,000, and while the Electoral Trust must file a report with the ECI, the details often remain buried in annexures that receive little media attention.
Trusts are expected not to favor one party excessively—but in reality, many do.
This system effectively allows corporations to donate to parties without their names being directly associated, sidestepping public scrutiny while maintaining legal compliance.
The 2023-24 Snapshot: Who Gave What to Whom
The ECI’s latest contribution reports for FY 2023-24 reveal the following key insights:
1. Prudent Electoral Trust
Registered Address: New Delhi
Major Donors: RP-Sanjiv Goenka Group, Megha Engineering, GMR, ArcelorMittal Nippon, TVS Motors, DLF, Airtel, Maruti Suzuki, Cipla, Jubilant, Apollo Tyres, and more.
Beneficiary Parties: BJP, INC, BRS, Jana Sena, TDP, YSRCP.
Noteworthy: Formerly Satya Electoral Trust, this is India’s most influential electoral trust.
2. Triumph Electoral Trust
Registered Address: Chennai
Major Donors: EID Parry, Coromandel International, Cholamandalam Investments.
Beneficiary Parties: BJP and DMK.
Notes: Highlights the regional focus of certain corporate-political linkages.
3. Paribartan Electoral Trust
Registered Address: Kolkata
Sole Donor: RCCPL Pvt Ltd (MP Birla Group subsidiary)
Beneficiary Party: Undisclosed, but tied to MP Birla Group interests.
Notes: Operates out of Birla-owned premises, raising conflict of interest concerns.
Other Trusts:
AB General, PD General, Jai Hind, Swadeshi, Jan Kalyan, Jay Bharath and others smaller players with concentrated or local donations.
Some, like Einzigartig Electoral Trust, received donations directly from individuals but still funneled all funds to the BJP.
The Problem: Transparency Only on Paper
While the ECI does publish reports, they are typically buried in obscure PDFs on its backend website, inaccessible to most citizens. Moreover, while companies must pass Board resolutions and ensure traceable payments, there are no effective deterrents against using subsidiaries, proxy companies, or opaque trusts to mask true donor identities.
This raises a fundamental question: Is this system a step toward transparency or a sophisticated means of legal obfuscation?
Conclusion: A Broken System That Needs Fixing
In the wake of the Electoral Bonds’ ban, Electoral Trusts have become the new anonymous pipelines of political money. While technically legal, they are no less damaging to the health of Indian democracy.
Transparency must not be symbolic. If India truly wishes to uphold the democratic spirit, it must shine a bright light on who funds its leaders and policies. Until then, Electoral Trusts will remain tools of influence hidden in plain sight, sanitized by paperwork, yet unaccountable to the public.
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