India Incorporation Registers 14 'Electoral Trusts' As Polls Draw Closer

NEW DELHI: With Lok Sabha polls set to begin next month, at least 14 electoral trusts have been set up by various business houses, including by giants like Tatas, Reliance, Mahindras and Bajajs, for contributing funds to various political parties. Being registered under a new framework that mandatorily requires 'Electoral Trust' in the name, the concept has been introduced to bring in more transparency into political funding activities. According to data available with the Corporate Affairs Ministry, at least 14 electoral trusts have been registered and the count is expected to rise further as many other corporates have initiated process to set up such entities before polls start for electing the 16th Lok Sabha.

Some of these trusts have decided to release funds to political parties after the elections, while some others are already believed to have made certain contributions. The corporate houses that have set up electoral trusts under the new regulatory framework in recent months include Tatas, Reliance, Bajajs and Mahindras. Bharatiya Socialist Republican Electoral Trust, Bajaj Electoral Trust and Jankalyan Electoral Trust, are among those already registered, according to latest data available with the Corporate Affairs Ministry.

Progressive Electoral Trust has been established by Tatas while Reliance group has set up People's Electoral Trust. Mining major Anil Agarwal-led Vedanta group has registered the Janhit Electoral Trust. Satya Electoral Trust has been formed by Bharti group while MP Birla group has incorporated the Paribartan Electoral Trust and K K Birla group has registered the Samaj Electoral Trust Association.

The remaining five are Mahindra Electoral Trust Company, Pratinidhi Electoral Trust, Reformative Electoral Trust of India, Gauri Welfare Association Electoral Trust and Harmony Electoral Trust. Names of many of the trusts do not identify with the business or corporate with which they are associated. In some instances, the trusts and their respective corporate house share common address. Although business houses have been funding political parties, the idea of electoral trust is aimed at streamlining the process as well as to usher in more transparency. For political funding purposes, companies and other entities can register non-profit trusts which would help in differentiating them from other group firms with business interests.

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