At least 20 newly established companies, some less than three years old, unlawfully bought electoral bonds worth ₹103 crore, violating regulations prohibiting political contributions within the initial three years of incorporation. Despite existing restrictions, these firms, many initiated during economic downturns or amidst the pandemic, obtained significant bond sums shortly after inception. The retention of the three-year rule aims to deter shell companies from engaging in political funding, with concerns raised over potential misuse for money laundering purposes. Notably, 12 of these companies, primarily headquartered in Hyderabad, collectively donated ₹37.5 crores, predominantly to BRS, TDP, Congress, and BJP. This breach underscores challenges in enforcing regulatory compliance within corporate political funding.
Newly Incorporated Firms Violate Political Contribution Norms, Purchase Electoral Bonds
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