New Delhi: A close perusal of the list of companies that have bought electoral bonds to fund political parties have thrown up at least 19 companies which were marked ‘high risk’ by the Ministry of Finance for violating rules under the Prevention of Money Laundering Act (PMLA).
Together, these companies had purchased electoral bonds for Rs 100.89 crore.
Sixteen of these companies were found to be registered in Kolkata, including in places like Lal Bazar, infamous for shell companies.
In a report on The Wire on March 15, The Wire had identified at least three such ‘high risk’ companies, besides naming a fourth company with a similar name, the exact registered address in Kolkata, and a common director with another Kolkata-based company labeled ‘high-risk’ by the ministry for violating the anti-money laundering law.
The Ministry of Finance’s Financial Intelligence Unit (FIU), which disseminates information related to suspect financial transactions to enforcement agencies and its counterparts in foreign countries, had put out a list of 9,491 “high-risk financial institutions” in 2018 for the first time. The exercise was to alert the enforcement agencies for alleged money laundering by these entities.
Quoting sources in the FIU then, a Business Standard report had said, “The activities of these institutions – post the demonetisation of large currency notes of Rs 1,000 and Rs 500 in November 2016 – were under the scanner of the FIU and it published their names after analysing their data from various information sources.” A senior ministry official had told the newspaper, “The publication of this information in newspapers is primarily a step by the FIU to make aware the public that these NBFCs are not law compliant and that they should refrain from indulging into transactions with them.”
FIU, since, then, has been putting out an annual list of non-banking financial companies (NBFCs) that have not complied with the rules of PMLA, and thereby alerting the enforcement agencies about it.
Significantly, thorough scrutiny of the ECI’s list by The Wire holds up that all the 19 companies marked ‘high risk’ by the FIU that have gone on to buy the electoral bonds belong to the 2018 list alone.
Bought Bond and off FIU List?
Also, as many as 18 of these 19 companies that had bought electoral bonds, coincidentally did not appear in the FIU’s subsequent annual lists of ‘high risk’ NBFCs. So only one of the ‘high risk’ companies which we found to have bought bonds, remained as a ‘high risk’ entity.
Weeks after the 2018 list was put out by the FIU, a PTI report, quoting Ministry of Finance officials, had said that “over 1200” of the 9,491 companies named in the 2018 ‘high risk’ list had filed additional documents to comply with the rules of the Prevention of Money Laundering Act (PMLA).
Renuka Investment Finance Limited
The company that has continued to feature in the Ministry’s subsequent lists of ‘high risk’ NBFCs is Renuka Investment Finance Limited.
Registered in Uttar Pradesh’s Sonbhadra, Renuka Investment Finance Limited had featured in the FIU’s annual ‘high-risk’ list in 2018, 2019, 2021, and 2022.
On April 12, 2019, the company bought electoral bonds worth Rs 5 crore. With SBI yet to furnish complete information about the purchases, it is not clear which political party had been funded by it and whether any of the amounts had been redeemed at all by a political party.
Other companies from the 2018 ‘high risk’ list
Following are the 18 other companies from the 2018 ‘high risk’ list of FIU for “non-compliance with PMLA and PML Rules, i.e., registration of principal officer” which have gone on to buy electoral bonds, intended to bankroll political parties.
Kamna Credits and Promoters Pvt Ltd.
The 2018 list the FIU had featured Kamna Credits and Promoters Pvt Ltd. (No. 3784 in the FIU list) for “non-compliance with PMLA and PML rules i.e., non-registration of principal officers”.
A Kolkata-based company, it bought electoral bonds worth Rs 23.1 crore on January 4, 2022. Four days later, the ECI announced assembly elections in Uttar Pradesh, Manipur, Punjab, Uttarakhand, and Goa.
Innocent Merchandise Pvt Ltd.
Yet another ‘high-risk’ company named by the ministry’s watchdog unit in 2018 for violating PMLA rules was Innocent Merchandise Pvt Ltd.
Also a Kolkata-based company, it bought electoral bonds worth Rs 25 lakh on April 12, 2019.
While the State Bank of India (SBI) has not disclosed the unique codes of the bonds yet, which would reveal which political party it had funded, the bonds were bought a day after the first phase of the 2019 general elections.
Almighty Finance and Investment Pvt. Ltd.
A Kolkata-based company, it bought electoral bonds worth Rs 30 lakh on July 5, 2019. While it not known which party it had funded, assembly elections and bye-elections were held in several states later that year.
Arihant Enterprises Ltd.
Arihant Enterprises Ltd too is a Kolkata-based company; it had bought electoral bonds worth Rs 40 lakh on April 12, 2019, a day after the first phase of the 2019 general elections was completed.
Asish Finance Pvt. Ltd.
This is also a Kolkata-registered company. It bought electoral bonds worth Rs 7 crore on January 4. It is not yet clear which party it funded and whether any of this substantial sum was redeemed by a political outfit contesting elections.
Authum Investment & Infrastructure Limited
A Mumbai-registered company, it purchased electoral bonds worth Rs 10 crore on April 7, 2022. Several assembly elections and bye-elections were held across different states, including in Gujarat and Himachal Pradesh, after April 2022.
On January 24, 2023, it again bought bonds for Rs 15 crore. Between 2022-23, it purchased bonds worth Rs 25 crore.
Bansal Business Pvt. Ltd.
Yet another Kolkata-based company, it acquired electoral bonds for Rs 50 lakhs on January 3, 2022, prior to elections in some state assemblies including in Goa, Uttarakhand, Punjab, Manipur and Uttar Pradesh. It is not yet clear if any party had redeemed the amount.
Clix Securities Pvt. Ltd.
Yet another Kolkata-registered company, it bought electoral bonds on January 3, 2022, worth Rs 36 lakh.
Crochet Trade and Investment Ltd.
Registered in Kolkata’s Lal Bazar area, Crochet Trade and Investment Ltd. picked up electoral bonds worth a significant Rs 2 crore on October 8, 2021.
On July 7, 2023, it bought bonds for Rs 1.5 crore.
In total, it purchased bonds worth a whopping Rs 3.5 crore.
Jupiter Merchantile Pvt. Ltd.
Also a Kolkata-based company, it purchased bonds worth Rs 25 lakh on April 17, 2019.
Lifeline Marketing Pvt. Ltd.
Another Kolkata-based company, it bought electoral bonds to fund political party/parties worth Rs 2 crore on October 7, 2021.
Manu Vyapar Pvt. Ltd.
Also registered in Kolkata, this company picked electoral bonds for a huge sum of Rs 3 crore on January 24, 2023.
Again, it bought bonds on January 11, 2024 for another Rs 2 crore. In total, it bought bonds for a massive Rs 5 crore.
Pluto Finance Pvt. Ltd.
This too is a Kolkata-based company; bought bonds from the State Bank of India (SBI) worth Rs 24 lakh on July 6, 2021.
On January 4, 2024, it picked more bonds; this time worth Rs 25 lakh.
A day later, it picked yet more bonds, worth Rs 50 lakh. Between 2021 and 2024, it had purchased bonds for Rs 99 lakh.
Ramoli Dealer Pvt Ltd.
Ramoli Dealers is also a Kolkata registered company. It had purchased electoral bonds for Rs 25 lakh on January 3, 2022.
Rani Sati Mercantile Pvt. Ltd.
A Kolkata company, it bought electoral bonds for Rs 30 lakh on October 5, 2021.
Again, it purchased bonds on January 6, 2024 for Rs 75 lakh. In all, it picked bonds for Rs 1.05 crore.
Interestingly, a director of this company is common with another company marked ‘high risk’ by the Finance Ministry in the 2018 list – Arihant Corporate Consultants Limited.
A Kolkata-based company with a similar name features in the ECI’s list. However, its directors’ names don’t match.
Right Aid Consultants Pvt. Ltd.
Again a Kolkata Lal Bazar company, it bought electoral bonds for Rs 1.5 crore on October 8, 2021.
On July 10, 2023, it bought more bonds worth Rs 1.5 crore. In all, it picked bonds to fund political parties worth Rs 3 crore.
Silvertone Securities Pvt. Ltd.
This too is a company registered in Kolkata’s Lal Bazar. It purchased electoral bonds worth Rs 2 crore on October 8, 2021.
On July 10, 2023, it acquired bonds for Rs 1.5 crore.
In total, between 2021 and 2023, it bought bonds for Rs 3.5 crore.
Sreenath Finvest Pvt. Ltd.
This too is a Kolkata-based company. It purchased bonds for Rs 10 lakh on July 7, 2021.
On January 7, 2022, it bought Rs 20 lakh worth bonds.
In all, it purchased electoral bonds for Rs 30 lakh.
Sudha Commercial Company Ltd.
Also a Kolkata-registered company; bought electoral bonds for Rs 30 lakh on April 20, 2019.
Sweta Estates Pvt. Ltd.
Registered in Aero City, Delhi, this company bought electoral bonds for Rs 2 crore in two lots on April 16, 2019.
Curious case of ABC India Ltd
Interestingly, in 2018, the FIU had named a Kolkata-based company, ABC Financial Services Ltd, as one of the ‘high-risk’ NBFCs for violating the anti-money laundering Act. In the electoral bonds data revealed by SBI, a company with a similar name – ABC India Ltd – bought electoral bonds. On April 12, 2019, it bought bonds worth Rs 40 lakh.
ABC India Ltd is also registered in Kolkata. The Ministry of Corporate Affairs’ documents show that ABC Financial Services Ltd and ABC India Ltd have the same registered postal address in Kolkata and a common director.
Note: This article was edited on March 18, 2024 to correct the amounts donated by some of the companies listed. The previous error is regretted.
