Gujarat Emerges as Political Donation Hub with Rs.1,700 Crore in 2023-24

AHMEDABAD : Gujarat has emerged as a striking hub of political funding, with six political parties receiving donations totalling around ₹1,700 crore during the 2023-24 financial year, according to a BBC report citing data from the Election Commission and election watchdog Association for Democratic Reforms (ADR). The figures have put the spotlight on the flow of political money into Gujarat, particularly amid questions surrounding little-known parties and their financial disclosures.

Five parties that were recognised as national parties at the time — the Congress, Aam Aadmi Party, Bahujan Samaj Party, Communist Party of India (Marxist) and National People’s Party — accounted for about ₹1,480 crore of the reported donations.

But the larger concern emerging from the data is the role played by relatively obscure political outfits that received substantial sums despite having a negligible electoral footprint.

One such party is the Aam Janmat Party, whose financial records have drawn particular attention. According to information cited from the Bihar Chief Electoral Officer’s office, the party received ₹216 crore in donations in 2022-23 and another ₹620 crore in 2023-24, taking its two-year total to ₹836 crore.

The figures are striking given the party’s limited electoral presence. During the 2024 Lok Sabha elections, it fielded just one candidate in Gujarat — from the Panchmahal constituency — whose security deposit was forfeited.

The party was registered in Bihar in 2020, but its audit and contribution reports reportedly showed an Ahmedabad address. Documents submitted to the Bihar election authorities listed an address in Ahmedabad’s New Naroda area.

The financial disclosures have also raised questions about compliance and transparency. According to the material cited in the report, the party submitted several accounting and audit reports covering earlier years on a single date, November 29, 2023. Its report showing ₹620 crore in donations for 2023-24 was submitted on April 15, 2025.

Questions have also been raised over election expenditure disclosures. Despite assembly and Lok Sabha elections being held in states where the party was active, the party reportedly failed to submit election expenditure accounts for several years. The Bihar Chief Electoral Officer had also sought pending reports from the party.

The issue assumes greater significance because Ahmedabad, particularly Naroda, has emerged as a location associated with several little-known political parties that have reported substantial donations.

According to Gujarat election authorities, around 80 parties registered in the state have become inactive or electorally insignificant due to low vote shares, with more than 32 based in Ahmedabad. Around 10 are reportedly located in Naroda.

The developments have intensified scrutiny of political funding mechanisms and the regulatory oversight of parties receiving large contributions despite limited electoral activity.

The central question now is not merely how much money political parties receive, but whether voters and regulators can clearly establish where the money comes from, how it is spent and whether statutory financial disclosures are being properly followed.