Who’s Sarath Chandra Reddy? Liquor scam approver who paid crores in EBs

Hyderabad-based businessman Sarath Chandra Reddy, the man whose revelations led to the arrest of BRS MLC K. Kavitha and Delhi CM Aravind Kejriwal over the past week, also paid Rs 55 crore to the Bharatiya Janata Party through electoral bonds, the data released on March 21 reflected.

Sarath Chandra Reddy won licences for five liquor retail zones under the excise policy that was implemented in Delhi from November 2021 to July 2022. He was arrested by the Enforcement Directorate on November 11, 2022 and four days later, Aurobindo Pharma, in which he is a director, paid Rs 5 crore to the BJP through electoral bonds, reports said.

After his bail in May 2023, Reddy turned approver and his firm paid another Rs 25 crore to the BJP through bonds on November 8, 2023. Also, two other companies connected to Aurobindo Pharma — Eugia Pharma Specialities Ltd and APL Healthcare Ltd are wholly-owned subsidiaries of Aurobindo Pharma — donated Rs 25 crore to the BJP.

The Enforcement Directorate has alleged that the “South Group”, which includes Reddy and others from Telangana and Andhra Pradesh, gave Rs 100 crore to AAP leaders, which it said was used by the party in 2022 Goa Assembly elections. ED further said that the loss to the Delhi government under this excise policy amounts to Rs 2,873 crore in revenues.

In Andhra Pradesh, Aurobindo Pharma donated to the Telugu Desam Party and In Telangana to BRS, according to the data available on Electoral Bonds.

 

 

 

Electoral Bonds: SC asks SBI to declare all details by Thursday, March 21

On Monday, the Supreme Court issued directives to the State Bank of India (SBI) to disclose comprehensive details concerning electoral bonds. These details include the date of purchase and redemption, the names of purchasers and recipients, denominations, and alphanumeric numbers and serial bonds.

Furthermore, the court instructed SBI Chairman Dinesh Kumar Khara to submit an affidavit by 5 pm on Thursday, confirming the disclosure of all pertinent details in the bank’s possession and affirming that no information has been withheld.

Chief Justice DY Chandrachud emphasized the necessity for SBI to provide all available details, including alphanumeric and serial numbers of purchased bonds, to prevent potential future controversies. The court underscored the importance of transparency by mandating the filing of an affidavit to confirm the disclosure and absence of withheld information.

supreme court/IANS

Additionally, the Supreme Court dismissed a petition by the ‘Citizens Rights Trust’ seeking to pre-date the disclosure of bond details. Instead, the court directed SBI to disclose information from April 12, 2019, to Feb 15, 2024. The plea alleged the sale of 9,159 bonds worth ₹4,000 crores during this period.

The court declined pleas by industry bodies like Ficci and Assocham to defer the disclosure of bond numbers, asserting that anonymity cannot supersede the requirement for information disclosure.

During the proceedings, Solicitor General Tushar Mehta raised concerns about misinformation on social media regarding the court’s electoral bond judgment. He highlighted deliberate misrepresentation by petitioners in press interviews and emphasized a hidden agenda behind such actions. In response, the court reiterated its readiness to handle social media commentary, asserting its commitment to the rule of law and transparency.

In the previous hearing, the Supreme Court instructed the Election Commission to return sealed covers containing electoral bond information. The court directed the digitization of this data by 5 pm on Saturday and its subsequent public release in accordance with the court’s directives.

Electoral Bonds: Furnish unique numbers, SC tells SBI while hearing EC plea

The highest judicial authority today issued a stern rebuke to the State Bank of India (SBI) concerning its handling of information regarding electoral bonds, a program enabling discreet donations to political parties by individuals and entities.

Following the court’s previous decision to nullify the electoral bonds scheme, SBI was instructed to divulge comprehensive data regarding donations spanning the past half-decade.

Responding to a plea from the Election Commission, the Supreme Court pointed out deficiencies in the data furnished by SBI. Presiding over a five-judge panel, Chief Justice DY Chandrachud directed SBI to not only provide existing details but also disclose the electoral bond numbers.

Chief Justice Chandrachud wasted no time in highlighting the absence of bond numbers, querying the representation for the State Bank of India at the onset of the session.

In a notification served to SBI, the Supreme Court bench requested clarification regarding this oversight, scheduling a follow-up hearing for March 18. The inclusion of electoral bond numbers is deemed crucial for establishing connections between donors and political entities.

Electoral bonds were introduced in 2018 by the BJP administration as a measure to substitute cash contributions, purportedly enhancing transparency in political funding.

Last month, the Supreme Court invalidated the program, citing constitutional concerns and the potential for quid pro quo arrangements. Furthermore, the court urged SBI to furnish the Election Commission with all pertinent details regarding bond transactions.

In its submission, the Election Commission reiterated the court’s directive to retain copies of documents submitted during the proceedings, emphasizing the importance of maintaining records at the commission’s office.

The Election Commission clarified that it had not retained any copies of the documents and requested their return to facilitate compliance with the court’s instructions.

Electoral Bonds Data Published on Election Commission Website, Initial Revelations

The electoral bonds data published by the Election Commission of India on its official website reveals the donor side and the political parties but not connect who received from whom. However, initial data interpretation showed that political parties received more than Rs 12,769 crore as donations from corporates and individuals since 2019.

A total of 20,421 electoral bonds were encashed since 2019 and of these, 12,207 bonds were of Rs 1 crore each; 5,366 bonds (Rs 10 lakh each); 2,526 (Rs 1 lakh each); 219 bonds (Rs 10,000 each); and 103 were of Rs 1,000 each.

The BJP received a maximum Rs 6,060 crore as donations and encashed 5,854 bonds of Rs 1 crore each and 1,994 bonds of Rs 10 lakh each. Apart from bonds of Rs 1 lakh and Rs 10,000, it also encashed 31 bonds worth Rs 1000 each.

The next recipient was Trinamool Congress which redeemed 3,275 electoral bonds of about Rs 1,609 crore of which 1,467 were of Rs 1 crore each and 1,384 bonds were of Rs 10 lakh each.

The Congress came third with 3,141 encashed electoral bonds of about Rs 1,421 crore, which included 1,318 bonds of Rs 1 crore each and 958 bonds of Rs 10 lakh each.

In all, there were 1,260 companies and individuals who purchased electoral bonds worth ₹12,769 crore. Ms SN Mohanty is the biggest individual donor on the list with total donations of ₹45 crore, followed by Lakshmi Niwas Mittal who donated ₹35 crore.

Electoral Bonds: What to expect from SBI’s submission of details to Supreme Court today

The State Bank of India (SBI) has reportedly indicated its readiness to disclose details regarding electoral bonds, as mandated by the Supreme Court. Following the Court’s directive on Monday, SBI was instructed to provide information on electoral bonds encashed by political parties to the Election Commission of India by the close of business hours on Tuesday, March 12.

Expressing dissatisfaction with SBI’s initial reluctance, the Supreme Court warned the public sector lender of potential consequences for non-compliance, emphasizing the seriousness of the matter. The five-judge constitution bench, led by Chief Justice DY Chandrachud, dismissed SBI’s plea for an extension until June 30 to reveal the details, instead setting a deadline for disclosure to the Election Commission by 5pm on March 15, with publication on the Commission’s official website.

The court also said that matching names of electoral bond buyers with specific political parties was not required at the stage since it was cited as the sole reason government lawyer to the Supreme Court bench. Hence, all the available information on purchasers, bond denominations, and redemptions by political parties is readily available with the bank which is expected to be disclosed today by the end of working hours.

 

Supreme Court

 

The Supreme Court had previously invalidated the controversial electoral bonds scheme on February 15, deeming it unconstitutional and mandating disclosure of donor information, donation amounts, and recipients by March 13. The apex court also instructed SBI to furnish details of electoral bonds purchased since April 12, 2019, by March 6.

During the latest hearing, the Supreme Court addressed SBI’s request for an extension, as well as separate pleas seeking contempt action against the bank for alleged defiance of previous directives. Agency reports suggest that SBI’s submissions imply the availability of the requested information, further underscoring the importance of compliance with the court’s directives.