Last week, the EC made available SBI’s electoral bonds data. Of the real estate companies that donated more than Rs 1000 crore, DLF and Chennai Green Woods Private Ltd. were at the top.
Data released by the Election Commission, which also released SBI’s list of entities that purchased electoral bonds for political donations, shows that between 2019 and 2024, over 40 real estate firms gave more than Rs 1000 crore to political parties through these bonds.
On March 14, the Election Commission made accessible SBI’s electoral bond data in two files: one file contained the names of the bond buyers, and the other contained the names of the political parties that cashed the bonds.
Several well-known real estate firms, including DLF’s subsidiaries DLF Commercial Developers Ltd, DLF Luxury Homes Ltd, and DLF Garden City Indore Pvt Ltd, contributed Rs 180 core to the electoral bonds. These are in the corresponding years’ books of accounts. There are no more remarks from us,” the company representative stated.
Chennai Green Woods Private Ltd., a construction company that contributed Rs 70 core, is owned by the Ramky Group. According to the EC’s data, B.G. Shirke Construction Technology Pvt. Ltd., which has “millions of sq. ft of construction encompassing mass housing projects,” contributed more than Rs 80 crore.
K Raheja Corp made a roughly Rs 20 crore contribution. The business remained silent.
Real estate companies must obtain over 20 regulatory approvals from local and state bodies before starting construction, which include environmental clearances, zoning regulations, construction permits, and building permits.
Property transactions were the most common use of cash in 2022, according to a LocalCircles study, based on the value of each transaction. Even though things had gotten better over time, buyers acknowledged that they paid cash for properties they had bought in the preceding seven years, according to the report.
Benami transactions were once prevalent. In these kinds of transactions, one party transfers or holds property, but a third party pays the consideration to conceal the actual owner’s identity. On November 1, 2016, the Benani Transaction (Prohibition) Amendment Act became operative. The Supreme Court had disapproved of its use retroactively in 2022.
The Real Estate (Regulations and Development) Act, 2016 (RERA) aims to protect homebuyers’ interests and promote investment in the real estate sector. Real estate projects and agents must register to ensure adherence to project timelines, quality, and fair practices. With the introduction of RERA, homebuyers now have more confidence.
Other property firms purchasing election bonds
The Prestige Group has made contributions totaling nearly Rs 45 crore through its businesses, which include Prestige Garden Estates Private Ltd, Prestige Projects Pvt Ltd, Prestige Habitat Ventures, Prestige Notting Hill Investments, Prestige South City Holdings, Prestige Estates Projects Ltd, and Prestige Management and Services. The company did not respond at all.
The Rustomjee Group made a nearly Rs 5 crore contribution. The business remained silent. The list shows that BKC Properties Pvt. Ltd. and Omkar Realtors Projects Pvt. Ltd. each contributed Rs five crore.
Lulu contributed Rs 2 crore, while Inorbit Malls India Pvt. Ltd. contributed approximately Rs 20 crore among retail companies.
The list included other developers such as Fortune Estate Developers Pvt Ltd, Sohini Developers, SRI Developers, Ashoka Developers, Magarpatta Township Development & Construction Company, Suman Estates Pvt Ltd, Chennai Greenwoods Pvt Ltd, Fortune Estate Developers Pvt Ltd, and Sweta Estates Pvt Ltd.