Over 40 real estate firms contributed more than ₹1000 crore to political parties through electoral bonds between 2019 and 2024, as per data released by the Election Commission that released SBI’s list of entities that had purchased electoral bonds for making political donations.
The Election Commission had released SBI’s data on electoral bonds on March 14 in two files – one containing names of purchasers and the other the names of political parties that encashed the bonds.
Among the prominent real estate companies that contributed to the electoral bonds included DLF’s subsidiaries such as DLF Commercial Developers Ltd, DLF Luxury Homes Ltd and DLF Garden City Indore Pvt Ltd that contributed an amount of ₹180 crore. “These are fully disclosed in our book of accounts for the respective years. We have no further comments,” the company spokesperson said.
Chennai Green Woods Private Ltd, a construction company owned by the Ramky Group, contributed ₹70 crore. B. G. Shirke Construction Technology Pvt Ltd that has ‘millions of sq. ft of construction encompassing mass housing projects’ contributed over ₹80 crore, according to the data released by the EC.
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K Raheja Corp contributed around ₹20 crore. The company did not respond.
There are more than 20 regulatory approvals ranging from environmental clearances, zoning regulations, construction and building permits that real estate companies are required to procure from local and state bodies before commencing construction.
In 2022, a LocalCircles study, had said that property transactions were the top area of cash usage from a value per transaction standpoint. The report pointed out that though the situation had improved over the years, a large number of property buyers admitted to paying cash as part of the transaction for property acquired in the previous seven years.
Benami transactions, where properties are transferred or held by one person but the consideration is paid for by someone else with the intention of concealing the identity of the actual owner, was a common practice earlier. The Benami Transaction (Prohibition) Amendment Act came into effect from November 1, 2016. In 2022, the Supreme Court had rules against its retrospective use.
The Real Estate (Regulation and Development) Act, 2016, (RERA) was passed to protect the interests of home buyers and also boost investments in the real estate sector. It mandates the registration of real estate projects and real estate agents, ensuring adherence to project timelines, quality, and fair practices. The implementation of RERA has boosted homebuyers’ confidence.
Other real estate companies that bought electoral bonds
Prestige Group through its companies such as Prestige Garden Estates Private Ltd, Prestige Projects Pvt Ltd, Prestige Habitat Ventures, Prestige Notting Hill Investments, Prestige South City Holdings, Prestige Estates Projects Ltd, Prestige Property Management and Services contributed close to around ₹45 crore. There was no response from the firm.
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The Rustomjee Group contributed close to ₹5 crore. The company did not comment. BKC Properties Pvt Ltd contributed ₹5 crore, Omkar Realtors Projects Pvt Ltd contributed ₹5 crore, according to the list.
Among retail companies Lulu contributed ₹2 crore and Inorbit Malls India Pvt Ltd contributed around ₹20 crore.
Other developers included Sweta Estates Pvt Ltd, Magarpatta Township Development & Construction company, Suman Estates Pvt Ltd, Chennai Greenwoods Pvt Ltd, Fortune Estate Developers Pvt Ltd, Sohini Developers, SRI Developers, Ashoka Developers among others, according to the list.
