Big corporates buy electoral bonds, reap huge benefits in return

Between April 12, 2019, and January 24, 2024, around 14 of the top 30 companies that bought electoral bonds faced investigations by government agencies, as per data from the State Bank of India released by the Election Commission.

Following pressure from the Supreme Court, which invalidated the electoral bonds scheme introduced by the first Narendra Modi government in 2018, the Election Commission of India has revealed the list of companies purchasing these bonds. Some notable donors include Vedanta Ltd, Bharti Airtel, Essel Mining Ltd, Bajaj Auto Ltd, and DLF Ltd.

During the period from April 1, 2019, to February 15, 2024, a total of Rs 12,156 crore was donated through the scheme. Nearly half of this amount came from the top 20 donors alone, according to data provided by the State Bank of India to the ECI.

Here is a list of major corporations that bought electoral bonds and reportedly gained significant benefits in return:

Wonder Cement Limited

Wonder Cement Limited has announced the establishment of a new production facility in Tulsigam, Savli Taluka. This strategic move, revealed on January 6, 2024, follows the company’s purchase of electoral bonds worth INR 10 crore on November 6, 2023. The new unit is set to bolster Wonder Cement’s manufacturing prowess, catering to the surging market demand.

The company’s commitment to enhanced service delivery and customer satisfaction is at the forefront of this expansion. The Tulsigam facility marks a pivotal step in Wonder Cement’s growth trajectory, positioning it as a formidable player in the construction materials sector.

Megha Engineering

Between April 2019 and January 2024, Megha Engineering and its group firm Western UP Power Transmission purchased 1,116 electoral bonds valued at Rs 1 crore each. In return, Megha Engineering secured the Thane-Borivali twin tunnel project worth Rs 14,400 crore in May 2023, beating out competitors such as L&T. Hyderabad-based Megha Engineering & Infrastructures Ltd (MEIL) won the bid for two separate packages to construct this ambitious project in Mumbai.

Serum Institute

The Serum Institute, known for releasing the Covishield vaccine, donated Rs 52 crore to the BJP through electoral bonds on August 18, 2022. Shortly after, Serum Institute of India CEO Adar Poonawalla met with Prime Minister Narendra Modi, and the Prime Minister tweeted in support of the Serum Institute on August 23, 2022, just five days after the electoral bond purchase.

Vedanta Limited

Vedanta Limited, founded by businessman Anil Agarwal and based in Mumbai, donated Rs 386 crores through electoral bonds on April 16, 2019. This donation occurred just before the elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur, and Goa. The group's subsidiary, Sesa Goa, is a major player in the iron ore mining sector in India, with significant mining operations in Odisha. Vedanta has diverse interests in sectors such as iron ore, oil and gas, copper, aluminium, and steel.

IFB Agro Limited

IFB Agro Limited, a prominent distiller and spirit-maker in India, faced scrutiny when the Kolkata Zonal Unit of the Directorate General of Goods and Services Tax Intelligence (DGGST) raided its Noorpur plant in June 2020. In 2023, a senior company executive disclosed that IFB Agro donated Rs 40 crore in electoral bonds "as per our instructions from the government."

According to data released by the Election Commission (EC), IFB Agro has donated a total of Rs 92 crore in electoral bonds. The company attracted attention when its Noorpur plant was attacked in 2020, prompting then-West Bengal governor Jagdeep Dhankhar to intervene and urge the TMC government to create a favorable environment for investment in the state.

ArcelorMittal Group

ArcelorMittal Group, along with individual contributions from Lakshmi Niwas Mittal, the executive chairman of ArcelorMittal, purchased electoral bonds worth INR 5 crore. In return, on January 10, 2024, the government announced ArcelorMittal's plan to establish the world's single largest steel plant in Gujarat. The proposed factory will have a capacity of 24 million tonnes per annum, as stated during the 10th Vibrant Gujarat Global Summit.

Torrent Power

Torrent Power, a part of the Rs 37,000-crore Torrent Group based in Ahmedabad, is the top buyer of electoral bonds from Gujarat, purchasing bonds worth Rs 107 crore. Additionally, Torrent Pharmaceuticals Ltd, a subsidiary, has bought bonds worth Rs 78 crore since 2019. Torrent Power has Mamta Verma, Principal Secretary of Energy and Petrochemicals, on its board as a non-executive director.

In return for their contributions, on January 4, 2024, Torrent Power pledged a Rs 47,000 crore investment in renewable energy and electricity distribution in Gujarat. The company signed four non-binding Memorandums of Understanding (MoUs) with the Gujarat government during the 10th edition of the Vibrant Gujarat Global Summit.

Bright Star Investments

Bright Star Investments Private Limited bought electoral bonds worth INR 10 crore on May 8, 2019. In return, the Assam government, under Chief Ministership of Himanta Biswa Sarma, signed a Memorandum of Understanding (MoU) with Bright Star Investments Pvt. Ltd to enhance medical infrastructure. The MoU specifically focused on developing the academic block of the second medical college in Guwahati in collaboration with Bright Star Investments Pvt. Ltd on November 4, 2022.

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