Donations through electoral bonds not always in line with company performance

BL Data Team Updated - March 16, 2024 at 01:12 PM.

Financial performance of many of these companies are very weak, and the donations seem way higher than their revenue and income

Many defunct companies belonging to a larger group, which have almost no operations, seem to have been used to purchase electoral bonds | Photo Credit: Soumen Tarafder

The data regarding donors using electoral bonds to donate to political parties between 2019 and 2024 features many unlisted companies. But the financial performance of many of these companies are very weak, and the donations seem way higher than their revenue and income.

Future gaming and hotel services, for instance, donated ₹1,368 crore through electoral bonds between 2020 and 2024. The company donated ₹405 crore in 2022, while its profit for FY22 was just ₹49.4 crore. In the next year too, it donated 5 times its net profit as a donation through electoral bonds. The company, owned by Santiago Martin, had several run-ins with the enforcement directorate, and its operations also appear to have been hit due to the 28 per cent GST imposed on lottery tickets in recent years.

The electoral bonds purchased by Qwiksupply chain private Ltd, at ₹410 crore are also well above its net income of ₹33 crore and ₹22 crore in FY23 and FY22, respectively. Very little information is available regarding the company, which appears to be involved in trading and logistics activities. But for a company with a turnover of ₹15,747 crore, it’s strange that it does not have an official website.

Also, many defunct companies belonging to a larger group, which have almost no operations, seem to have been used to purchase electoral bonds. For instance, Madanlal Ltd. and MKJ Enterprises seem to have had no revenue or profit in FY23 and FY22. These companies, belonging to Keventer Food Park Infra ltd, were used to channel the donations through electoral bonds. Similarly, DLF Commercial Developers, a company yet to file its annual accounts for FY22 and FY23, has donated ₹105 crore through electoral bonds.

Published on March 15, 2024 13:50

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