Scam fear coming true? Megha Engineering, 2nd biggest donor, purchased major Electoral Bonds, got key govt contracts

Electoral Bonds: Analysis of Election Commission data exposes a correlation between MEIL's electoral bond purchases and the timing of lucrative government contracts.

Author
Prateek Gautam
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Courtesy: freepik

Electoral Bonds: Megha Engineering & Infrastructure Ltd (MEIL) finds itself under scrutiny as data reveals significant electoral bond purchases amounting to ₹966 crore, coinciding with the acquisition of key government contracts. Let's delve into the details.

Electoral Bonds Purchase and Contract Awards

Analysis of Election Commission data exposes a correlation between MEIL's electoral bond purchases and the timing of lucrative government contracts. The company procured bonds worth ₹966 crore, becoming the second-largest purchaser.

Key Projects and Bond Acquisition

MEIL's bond acquisitions closely preceded or followed the awarding of significant projects, such as the Zojila tunnel in Jammu and Kashmir, valued at ₹4,500 crore. Notably, the company secured Asia's longest bi-directional road tunnel project in Jammu and Kashmir shortly after a substantial bond purchase.

Financial Contributions

The electoral bond purchases translated into substantial financial contributions, with MEIL donating ₹585 crore to the Bharatiya Janata Party (BJP), among others. The firm also contributed to regional parties like the Bharat Rashtra Samithi (BRS), DMK, YSR Congress Party, and others.

Timeline of Bond Purchases and Project Awards

MEIL's bond acquisitions in October 2020 coincided with securing the contract for constructing a bullet train station at the Bandra Kurla Complex (BKC) in Mumbai. Similarly, significant bond purchases in subsequent months aligned with the acquisition of major projects like the Polavaram project in Andhra Pradesh.

Geographical Spread of Projects

MEIL's project portfolio extends across states like Uttar Pradesh, Uttarakhand, Gujarat, and Madhya Pradesh, reinforcing its presence in the infrastructure sector nationwide.

Political Donations

Apart from the BJP, MEIL extended financial support to various political parties, including the BRS, DMK, and regional players like the Telugu Desam Party (TDP) and Congress.

Company Profile

Founded in 1989 by industrialist Pamireddy Pitchi Reddy, MEIL initially focused on manufacturing pipes for municipalities before diversifying into executing large-scale infrastructure projects, including dams, power plants, and roads.

The revelation of MEIL's significant electoral bond purchases alongside government contract awards raises questions about the nexus between corporate contributions and political decision-making. As scrutiny intensifies, transparency and accountability in such transactions become imperative for maintaining the integrity of the electoral process.