ISLAMABAD: More than half of India’s ruling Bharatiya Janata Party (BJP)’s funds from four northeastern states came from those who won government contracts, according to an Indian media report.
The report traces how the contractor-driven economy in Assam, Tripura, Arunachal Pradesh, and Manipur is helping fill the party's coffers, raising questions about the link between political funding and government tenders.
In the two financial years 2022-24, the BJP collected Rs776.3 million in donations from companies and individuals in Assam, Arunachal Pradesh, Manipur, and Tripura.
Of this, at least 54.89% came from those who had secured tenders or regulatory clearances from state or Union government agencies.
In Assam alone, more than 52% of funds in the financial year 2023-24 came from government contractors, a trend that continued in the previous year, with 64.48% of donations from such sources.
The report's findings suggest that in Arunachal Pradesh, over half of the BJP’s donations in FY 2023-24 came from contractors, while in Tripura, the figure was over 61%.
In Manipur, in FY 2022-23, around 5% of the contributions were from companies that had secured government contracts.
The BJP’s declared donors, including businesses in Assam’s trading community, have long been linked to the region’s contractor economy, which depends heavily on government projects.
“In Assam, it’s the business and trading community that is donating to the BJP. These trading communities control the economy,” said Bonojit Hussain, a researcher from Assam.
According to the report, on June 4, 2023, the under-construction Aguwani-Sultanganj bridge in Bihar collapsed into the Ganga, causing widespread panic. Local activist Ajit Kumar witnessed the event and described it as a massive shockwave.
The bridge was being built by SPS Construction India Pvt Ltd, the same company responsible for an 8.4 km bridge under construction in Guwahati, Assam, intended to connect Pan Bazaar with the northern end of the city.
In response to the collapse, the Assam government initiated an inquiry, and IIT Guwahati conducted a review, though the findings were never made public.
The report states that SPS Construction donated Rs50 million to the BJP during the same financial year, highlighting a potential link between the company and the ruling party.
Multiple contracts
According to the report, the company had been awarded multiple contracts by BJP-run state governments in the northeast, including in Assam, where it faced scrutiny following the bridge collapse.
The report maps donations by companies such as Badri Rai and Company, which donated Rs10 million in FY 2023-24 after its construction projects in Assam and Arunachal Pradesh.
Notable case
Another notable case involves Samson Borang, a businessman from Arunachal Pradesh, who donated Rs43 million to the BJP after his company, Sedi Allied Agency, secured state contracts.
While these donations are legal under the Representation of the People Act, 1951, experts argue that the connections between government contractors and political contributions point to a larger issue of crony capitalism.
“Politics is largely run by syndicate money,” said Hussain, highlighting concerns over the opaque flow of funds in the region’s contractor economy.
Incomplete disclosures
The Indian media report used data from the Election Commission of India, which mandates political parties to disclose donations above Rs20,000.
However, the BJP’s incomplete disclosures and lack of transparency hindered a full analysis, leaving many donor identities unknown.
The report sheds light on how India’s northeastern states, with their reliance on central government contracts, have created a political funding landscape in which businesses and contractors thrive in close-knit relationships with the ruling party.
While such donations are legally permitted, critics warn that they perpetuate a system prone to cronyism and potential corruption, the report states.
There was no public comment on the report by BJP officials till the publication of the report.
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