Congress was third in the list encashing bonds worth Rs 32 crore while TDP and Trinamool were fourth and fifth each getting bonds valued at about Rs 13 crore. Apart from them, RJD, DMK, Shivsena and BJD in that order all got bonds valued at Rs 5 crore or more from this fledgling companies.
The scheme was first announced in the 2017-18 Budget speech, but the first bonds were issued in March 2018. Prior to 2017, the Companies Act, 2013 allowed a company to donate only up to 7.5% of its average profit for the three previous years. By this yardstick, many of these companies incorporated from 2017 onwards would not have been eligible for political donations. The govt amended the law to lift this restriction on the companies.
With the cap of 7.5% of average profits for three years removed, some companies donated a significant proportion of their profits or even more than the profit and even some that were making losses donated to parties through electoral bonds. The amendements also allowed companies to donate within the same year of being incorporated, which would not have been possible earlier.
For instance, Tsharks Overseas Education Consultants and Tsharks Infra Developers Private Limited, which donated Rs 4 crore and Rs 3.5 crore to BRS, were incorporated in 2023. Similarly, HH Iron and Steel Private Limited, incorporated in 2018, made a combined profit of Rs 5.6 crore in the three years between 2019-20 and 2021-22 but donated Rs 15 crore to BJP and Rs 5 cr to BJD.
Overall, six of these relatively new companies donated more than Rs 10 crore each through electoral bonds. LCC Projects Private Limited leads the list with Rs 31.5 crore and is followed by Aparna Farms, Askus Logistics and HH Iron and steel, each donating more than Rs 20 crore.
