Aurobindo Pharma Donates Rs 52 Cr in Electoral Bonds, BJP Largest Recipient

New Delhi, Mar 22 - In a recent disclosure by the Election Commission, Aurobindo Pharma, a prominent Hyderabad-based pharmaceutical company, has been reported to have made substantial donations through electoral bonds, amounting to a total of Rs 52 crore. The data reveals a significant portion of these funds, over half, was directed towards the Bharatiya Janata Party (BJP). This revelation comes amidst the arrest of one of Aurobindo Pharma's directors in connection with the Delhi liquor scam, raising questions about the transparency and use of electoral bonds in political funding.

Representative image

According to the Election Commission's data, Aurobindo Pharma's electoral bond purchases spanned from April 3, 2021, to November 8, 2023. The BJP received Rs 34.5 crore, while the Bharat Rashtra Samithi (BRS) and the Telugu Desam Party (TDP) were allocated Rs 15 crore and Rs 2.5 crore, respectively. Notably, a purchase worth Rs 5 crore was made on November 15, 2022, just five days after P Sarath Chandra Reddy, a director at Aurobindo Pharma, was arrested for his alleged involvement in money laundering linked to the now-defunct Delhi excise policy.

Electoral Bonds Encashment

The BJP encashed an electoral bond sum of Rs 5 crore on November 21, 2022. Furthermore, on November 8, 2023, Aurobindo Pharma acquired additional electoral bonds valued at Rs 25 crore, which were subsequently encashed by the BJP on November 17, 2023. An earlier transaction also saw the company purchasing bonds worth Rs 3 crore on January 5, 2022, which were encashed by the BJP a week later.

Controversies and Legal Proceedings

The arrest of Reddy and his subsequent role as an approver in the Delhi excise policy case has cast a shadow over these transactions. The Enforcement Directorate had previously accused him of engaging in unfair market practices to benefit unduly from the liquor policy by colluding with business figures and politicians implicated in the case. This development has intensified scrutiny over electoral bonds and their role in political financing.

Political Reactions

Amidst these revelations, Congress general secretary Jairam Ramesh criticized the government's handling of the electoral bonds scheme. He pointed out that Aurobindo Pharma's case exemplifies how companies under investigation for various charges are still able to contribute significant amounts through electoral bonds. Ramesh accused the government of engaging in "hafta vasuli" (extortion) and highlighted that at least 21 firms currently facing inquiries from agencies like the CBI, ED, or IT department have made donations through this mechanism.

The use of electoral bonds has been a contentious issue in Indian politics, with critics arguing that it lacks transparency and allows for anonymous donations that could lead to undue influence on political parties. The recent developments involving Aurobindo Pharma have further fueled this debate, prompting calls for more stringent regulations governing political donations in India.