BJP Receives ₹382 Crore Donation from Gujarat: ₹1 Crore Donation to AAP by Ahmedabad Company

During the Lok Sabha elections in 2019, the Bharatiya Janata Party (BJP) received a total of ₹153.50 crore from Gujarat between March and May. Similarly, for the 2022 Assembly elections, the party received ₹92.59 crore in electoral bonds from the state between October and November. 

According to data from the Election Commission website, from 2018 to September 2023, the BJP obtained a whopping ₹382.61 crore through electoral bonds from Gujarat. Out of these bonds, 598 were issued in Gandhinagar SBI branch, and others were from Ahmedabad. 

Collaborating with the Association for Democratic Reforms (ADR), Lokesh Batra’s RTI revealed that Gujarat ranked sixth in issuing the highest value of electoral bonds across the nation, issuing bonds worth ₹629.87 crore between 2018 and 2024. Mumbai’s main SBI branch issued the highest number of bonds worth ₹4,000 crore. 

The Gandhinagar (Sector 10B) SBI branch, the empowered branch for issuing electoral bonds in the state, issued a total of 1,189 bonds worth one crore each. While the government has printed over ₹36,000 crore worth of electoral bonds so far, only ₹16,000 crore worth of bonds have been bought by political parties.

Breakdown of BJP’s Electoral Bond Issuance

The Bharatiya Janata Party (BJP) has issued a significant number of electoral bonds valued at ₹1 crore each, amounting to a total of 355 bonds. The distribution of these bonds based on their denominations and their cumulative value is detailed below:

• Bonds valued at ₹1,000: 29 bonds, with a total value of ₹29,000
• Bonds valued at ₹10,000: 27 bonds, totaling ₹2.70 lakh
• Bonds valued at ₹1 lakh: 69 bonds, accumulating to ₹26.90 crore
• Bonds valued at ₹10 lakh: 269 bonds, adding up to ₹26.90 crore
• Bonds valued at ₹1 crore: 355 bonds, summing up to ₹355 crore

In total, the BJP has issued 749 electoral bonds, generating a cumulative value of ₹382.62 crore from the period spanning from 2018 to September 2023.

How do Parties Receive Funds through Electoral Bonds?

As per the Coordinator of the Association for Democratic Reforms (ADR) Gujarat, the process of obtaining funds through electoral bonds is akin to issuing Demand Drafts (DDs) at banks. Just like the DD process, electoral bonds involve a similar procedure. 

Individuals or companies willing to contribute financially to a political party purchase electoral bonds from authorized branches of the State Bank of India (SBI) approved by the government. Subsequently, the purchaser hands over these bonds to the political party of their choice. 

The party then deposits these bonds into their account at the authorized branch of the State Bank of India, which issues the bonds publicly. The funds thus received are credited to the party’s account. Across different states of the country, 29 branches of SBI are authorized to sell electoral bonds.

Corporate Contributions through Electoral Bonds: A Case Study

According to data from the Election Commission’s website, Vadodara-based Alembic Pharmaceuticals donated ₹50 lakh to the Sikkim Democratic Front through electoral bonds in October 2018. Similarly, during the 2019 Lok Sabha elections, Torrent Pharmaceuticals, based in Ahmedabad, donated ₹100 crore to a common citizens’ party in May.

Here’s a breakdown of the issuance of electoral bonds from various main branches of the State Bank of India (SBI):

• Mumbai Main Branch: 5,426 bonds issued, totaling ₹4,009 crore
• Hyderabad Main Branch: 4,812 bonds issued, totaling ₹3,554 crore
• Kolkata Main Branch: 7,834 bonds issued, totaling ₹3,333 crore
• New Delhi Main Branch: 3,662 bonds issued, totaling ₹2,324 crore
• Chennai Main Branch: 1,869 bonds issued, totaling ₹1,524 crore
• Gandhinagar Main Branch: 1,189 bonds issued, totaling ₹629 crore
• Other 13 Main Branches: 3,238 bonds issued, totaling ₹1,145 crore

Total issuance from 19 main branches stands at 28,030 bonds, accumulating to ₹16,518 crore. Out of the total, only 28,030 bonds have been sold, while 27,811 bonds have been submitted by political parties. The total value of bonds submitted is ₹16,518 crore.

As per the Right to Information (RTI) data, out of the ₹36,881 crore worth of electoral bonds printed by the government from 2018 to 2024, only 28,030 bonds have been sold, and 27,811 bonds have been submitted by political parties. The remaining bonds, if not submitted by parties within 15 days, are transferred to the Prime Minister’s Relief Fund after the maturity period.