We Don't Know Who Paid Whom But Electoral Bond Data Tells Us Everything We Need to Know About What's Wrong With Indian Politics
Election dates will be announced on Saturday, Admiral Ramdas was naval chief who cared for ship of Indian democracy
A newsletter from The Wire | Founded by MK Venu, Seema Chishti, Siddharth Varadarajan, Sushant Singh, Sidharth Bhatia, Pratik Kanjilal and Tanweer Alam | Contributing writer: Kalrav Joshi, with additional inputs by Anirudh SK
Snapshot of the day
March 15, 2024
Siddharth Varadarajan
The dates for the Lok Sabha election will be announced by the Election Commission at 3 pm tomorrow. Assembly elections for Andhra Pradesh, Arunachal Pradesh, Odisha and Sikkim are expected to be held simultaneously.
The Supreme Court has said it will hear a challenge to the dodgy law under which two Election Commissioners who took charge this morning were appointed—but only next week, on March 21. Milords say they “do not usually stay laws.” (Except, of course, when laws directly concern them – like the National Judicial Appointments Commission Act, which they ensured would not be implemented before they finally killed in 2015.]
But first the Great Unravelling of the Electoral Bonds Scam. Yesterday, the Election Commission uploaded two PDF documents, one containing a datewise list of bond purchases by companies and individuals, the other a datewise list of bonds redeemed by political parties. It is virtually important to match one to the other but even without knowing who paid whom, the list of donors and the dates they decided to buy electoral bonds tells us all we need to know about what is wrong with Indian democracy today.
Here is a list of the top 50 donors, grouped by holding company/promoter, and the sectors they are in. The top 20 donors – all companies – account for nearly 50% of bonds purchased. The single biggest donor is a company most Indians would never have heard of. Future Gaming, which donated Rs 1,368 crore – that is nearly 10% of all bonds bought – is run by a self-styled ‘lottery king’ who has spent the past decade making pots of money through questionable means, getting raided by the authorities, and, as it turns out, donating pots of money to politicians—presumably so that he remains out of harm’s way.
When electoral bonds were introduced in 2018, Narendra Modi’s government claimed they would help clean up political financing. The claim was absurd, and was criticised even by the Reserve Bank of India, finance ministry officials and the Election Commission. Yet the Supreme Court dragged its feet and took six years to declare the scheme illegal. The details before us are nothing but the chronicle of a disaster foretold. Today we have a list of companies but we don’t know whose money has been sloshing around given that some of them have donated up to 10 and even 100 times their profit to parties through electoral bonds. As many as 43 companies set up with minimum mandated capital of Rs 1 lakh bought and donated bonds, as did at least 28 companies that were set up on or after April 12, 2019, when the first electoral bond in the SBI’s list was purchased. This is the first point.
Second, the list is full of companies involved in infrastructure, mining, real estate, gaming, power, roads, telecom – sectors where the government still has a lot of discretionary power. Prime Minister Modi has changed environment and other policies to help businesses in these sectors, at the cost of the land and livelihoods of millions of poor Indians. The data makes it clear who has been calling the tune of the Pied Piper of Hindutva.
Third, the fact that huge amounts of corporate money went not just to the BJP, which controls the national government and several states, but also to the Trinamool Congress, Biju Janata Dal, DMK and YSR Congress (which are in power in West Bengal, Odisha, Tamil Nadu and Andhra Pradesh respectively),( the Bharatiya Rashtra Samiti which ruled Telangana till last December) and the Congress which ran states like Chhattisgarh and Rajasthan tells us that the politics of quid pro quo is thriving everywhere. Powerful state governments have a cosy relationship with big business houses from the state or even those from outside looking to exploit mineral resources.
The fourth disturbing element is that evidence has begun to emerge of electoral bond purchases opening the doors for lucrative commercial contracts. This is something that can only be properly investigated if and when the State Bank of India provides information that can help match company to party.
Fifth, many examples have surfaced of electoral bonds being bought shortly after a company runs into trouble with the authorities. For example, “on April 2, 2022, it was reported that the ED had initiated a money laundering probe against Future Gaming and seized Rs 409.92 crore worth of its assets. Five days later, on April 7, 2022, according to the Election Commission’s data, the company bought around Rs 100 crore worth of bonds.” Many such examples have emerged which suggest Indian politics resembles an extortion racket of sorts. “I don't want industries to be badnaam-ed like this,” Finance Minister Nirmala Sitharaman said today. “I don't think they come and make donations only because they want to escape ED. It doesn't happen that way. There is no direct correlation between the ED and the donation business.” She may have a point but no one is likely to take her word for it: doubts can only be resolved when the SBI spills all the beans.
Today, the Chief Justice of India asked the SBI why it had not revealed the unique IDs of the bonds – the Supreme Court’s February order had said voters had a right to know whether parties and donors had a relationship enabling quid pro quo. Investigative journalist Poonam Aggarwal, who bought a bond, elaborates on how the SBI has always known the trail. Sidelights from the court today: Tushar Mehta, the Solicitor General jumped in to defend the SBI. When the bench rapped him, he squirmed and said he was not representing the bank. Worth a watch.
Fun fact: the electoral bond data has also revealed Rs 5 crores of donations from two beef exporting companies.
Congress President M Mallikarjun Kharge this afternoon demanded a special investigation into the electoral bonds scheme – through which the ruling party has encashed at least Rs 6,060 crore over five years – and said the BJP's bank accounts must be frozen till its completion. Kharge also raised the issue of several companies purchasing electoral bonds soon after they faced raids by central agencies such as the Enforcement Directorate and Income Tax Department. While the BJP has collected crores of rupees in electoral bonds, the bank account of the Congress, which received donations, was frozen, he said. “The Prime Minister says ‘Na khaunga, na khane dunga (Will not eat, will not let others eat)’, but today it has been exposed by the Supreme Court how the BJP has made money out of electoral bonds. SBI data shows BJP got 50 per cent donations and Congress got only 11 per cent,” Kharge said.
Meanwhile, the international media has dined out on the bonds story. The Financial Times notes, “India’s so-called Lottery King, who is under investigation for fraud and money laundering, has emerged as one of the biggest political donors in the country, according to data published in the wake of a landmark Supreme Court ruling. Santiago Martin’s Future Gaming and Hotel Services bought Rs13.68bn ($165mn) worth of electoral bonds between 2019 and 2024, according to data published by the Election Commission of India late on Thursday.”
Now that we know something about the companies who bought electoral bonds, people have begun demanding that the controversial PM Cares Fund which Narendra Modi set up as a non-government trust during Covid also open its books. perhaps this sums up what most of us feel.
Leo Mirani in The Economist’s Essential India newsletter looks at the killing of Tiktok in India and what it might have been like, if not banned by the BJP-led government in 2020. He says: “It is impossible to say what Indian society or Indian politics might have looked like over the past four years had TikTok not been banned. But it is fair to assume that Instagram and YouTube have proved less disruptive than TikTok might have, if only because India has more leverage with Western tech giants than it would with a Chinese one.”
A Gujarat school principal who in her capacity as exam administrator asked Muslim students to remove their hijabs has been removed from her post. She said she did this so that the girls’ faces were clearly visible on CCTV cameras as required by exam protocol, but the exam director of Gujarat’s secondary school board said there was no need to police their attire in this case: “Any female supervisor can check the identity of a female student ahead of the exam by matching her face with the photo on the receipt. After that, we have no issues,” she told PTI.
Some civil society organisations in Manipur declared a 48-hour “general strike” after members of the United National Liberation Front (Pambei) were arrested in an investigation led by the National Investigation Agency earlier this week, India Today NE reports. The state’s chief minister has also demanded their release unless they were proved guilty of wrongdoing. The UNLF-P is in peace talks with the Union government.
The Economist writes on India’s first test of a “MIRVed” ICBM — one with multiple warheads each of which can strike different, distant targets — and some of the implications. “The cost saving for an equal number of warheads on target could be substantial,” says Christopher Clary, Associate Professor of Political Science, University at Albany.
“Go with your identity. You can’t encash his name,” the Supreme Court told the Nationalist Congress Party’s Ajit Pawar-led faction regarding its use of Sharad Pawar’s face in its publicity materials. It added: “Give us an undertaking or we will pass an order. Go with your identity only. You have separated yourself.” The junior Pawar later told the press that “after Sharad Pawar objected”, his party started using photos of Maharashtra’s first chief minister YB Chavan instead.
The Uttar Pradesh police’s special task force has traced the leaked question papers in a recent constable recruitment exam to an Ahmedabad warehouse, Piyush Rai reports. According to Rai, three people broke into a sealed trunk containing the papers, scanned them and forwarded it to “members of the cheating mafia”.
After suffering from a cerebral concussion and sharp cuts on her head, West Bengal chief minister Mamata Banerjee is back home after being treated by doctors, The Telegraph reports. She told the police she was pushed from behind and a probe into the matter is ongoing.
Large troop deployments by India and China and “sporadic encounters between opposing forces risk miscalculation and escalation into armed conflict”, the office of the US government’s director of national intelligence has said in a recent report. It also notes that while India and Pakistan are “inclined to sustain the current fragile calm in their relationship” following the 2021 ceasefire, they haven’t used this calm to rebuild bilateral ties.
The PM will visit Bhutan next week, his opposite number Tshering Tobgay said yesterday. India is Bhutan’s principal trade partner and provides its military support, but the Himalayan kingdom is also holding border talks with China, the completion of which likely pave the way for full diplomatic relations between the two countries.
Ex-Naval Chief Admiral Laxminarayan Ramdas passed away at the age of 90 this morning. Over the years, Admiral Ramdas became an outspoken voice of conscience, advocating actively for the defence of the Indian Constitution, especially the values of liberty, equality, fraternity and secularism.
Udta Telangana?
The Hindu has a detailed report on Telangana being possibly “in the grip of intoxication and addiction.” It writes that “the clandestine trade of alprazolam and adulterated toddy has cast a shadow over Telangana, leading many of its residents to a dangerous journey of addiction. With a steady rise in cases and seizures, officials have a massive challenge at hand.”
Le Monde: India’s witch hunt against civil society
Mincing no words, Le Monde has an investigative report titled, “In India, Narendra Modi hunts down his 'enemies from within' in civil society.” The investigation starts with Harsh Mander as a key protagonist. It writes that “under the impetus of the nationalist prime minister, the executive orchestrated a radical campaign against NGOs and human rights movements.” This “witch hunt”, it says, also extends to the media and universities.
Hashtag #Tesla
Tesla may finally get the lowered import taxes it’s been lobbying for, because the government announced today that it will lower taxes on certain electric vehicles if companies commit to a $500 million investment and a factory within three years. Taxes range from 70% to 100% on imported cars and EVs and the government said it will lower them to 15% on a limited number of cars for companies that meet the investment target. The new policy is also an opportunity for Vietnam’s VinFast, which plans to invest $2 billion and is building a factory in Tamil Nadu.
When lowered import taxes primarily work for a billionaire who owns a big tech company like X (formerly Twitter), of course there are no questions to be asked.
Reportedly
To BJP or to BJD? That is the question. There is rampant confusion in the NDA’s ranks as Odisha is in the throes of ‘will BJP and BJD kiss and make up or not?’ The state BJP president, Manmohan Samal, caused a stir on Thursday (March 14) with his fluctuating stance on the matter. Upon his return from Delhi earlier in the day, Samal told reporters that the BJP would form the government alone in the state, The Indian Express reported. “Odia asmita (Odia pride) will be our primary electoral focus in the upcoming elections,” he said. However, he later changed his stance and removed his statement on X (formerly Twitter), which suggested the BJP would solely govern Odisha. They say Modi is driving this. But driving this where?
Deep dive
Scroll through Nature India’s immersive piece to unpack mounting risks as climate change hits the high Himalayas. Subhra Priyadarshini reports from the roof of the world.
Prime number: 47.8% difference between labour force participation
India’s labour force gender gap widens with women at 28.3% and men at 76.1%, showcasing a stark 47.8% contrast, reflecting significant disparities in workforce participation.
Opeds you don’t want to miss
“The court-ordered disclosure on opaque electoral bonds doesn’t link them to specific political parties. But it does raise serious questions about crony capitalism.” Andy Mukherjee on the exact nature of the relationship between capital and politics.
“While Indian government officials point to recent consumption figures to proclaim that extreme poverty has been eliminated, a closer look reveals the grim reality behind these misleading statistics,” writes Ashoka Mody. “In reality, poverty remains deeply entrenched in India and appears to have increased significantly”.
An election campaign being “launched by the prime minister” raises doubts and eyebrows. Does getting in a contestant for the polls for what is an EC activity, uphold the promise of a ‘level playing field’? asks Srinivas Kodali.
The extravagant pre-wedding festivities of Anant Ambani — son of India’s and Asia’s richest man, Mukesh Ambani — illustrated how weddings are occasions for Indians to signal their social status and wealth, writes Surbhi Gupta.
Apar Gupta writes on a policy flip-flop on an ‘illegal’ MEITY advisory on Artificial Intelligence while it refuses to admit its mistake.
Dilip D'Souza does some serious and wise calculations. “State Bank of India and Brihanmumbai Municipal Corporation face criticism for delays in tasks, like submitting records and building a bridge, due to seemingly manageable challenges.”
Has poverty really dropped to 5% in India? Surjit Bhalla and Jayati Ghosh discuss the question in a conversation moderated by Prashanth Perumal J.
Listen up
On Grand Tamasha, author and musician Zac O’Yeah joins Milan Viashnav to discuss his new book, ‘The Great Indian Food Trip’. From Koshy’s in Bengaluru to pickled mussels in Kerala and the best of Mumbai’s Irani cafes, listen here for a culinary tour.
Watch out
Watch this episode from Peeing Human that digs deep into Indian history (contemporary and ancient) and master storytelling techniques of Modi which makes it possible for him to pass off absolute fake news as stories of pride in broad daylight [In Hindi].
Over and out
Watermelon sales in Kashmir take a nosedive during Ramadan as anxiety over artificial ripeners grips consumers. Fruit traders lament a staggering decline, with daily revenues slashed by over 50% from last year’s robust average of Rs 5 crore. Amidst doctors’ warnings of health hazards, the beloved iftar staple faces a crisis of confidence.
An interesting take on actor Alia Bhat’s talent in The Film Companion. “The baby-faced actor has used innocence as the scaffolding on which her career-defining performances rest.”
That’s it for today. We’ll be back with you on Monday, on a device near you. If The India Cable was forwarded to you by a friend (perhaps a common friend!) book your own copy by SUBSCRIBING HERE.