Many companies in Hyderabad and Telangana used subsidiaries and affiliates in sectors like pharma and real estate to buy electoral bonds.
Many companies attempt to donate through multiple subsidiaries, avoiding disclosure of the main company's name. (The South First/Sumit Jha)
Hyderabad, the capital of Telangana, has emerged as the second-most-favoured destination for purchasing electoral bonds.
It also has brought to light a scenario where many companies headquartered in the city or the state have utilised their subsidiaries and affiliated entities — in sectors like pharmaceuticals and real estate — to acquire these bonds.
Between 2018 and 2024, during the sale of electoral bonds to political parties, the Hyderabad Main Branch of the State Bank of India (SBI) emerged as the second-highest seller nationwide.
The branch sold electoral bonds totalling ₹3,554.9 crore, ranking just behind the Mumbai Main Branch, which sold bonds worth ₹4,009.3 crore.
Among the prominent contributors, Megha Engineering and Infrastructures Limited (MEIL) stands out with a substantial contribution of ₹966 crore, supplemented by an additional ₹220 crore through its subsidiary Western UP Power Corporation. This brings the group’s total electoral bond purchase to ₹1,186 crore.
However, other companies seem to lag far behind in terms of donations. Many companies attempted to “donate” through multiple subsidiaries, avoiding disclosure of the main company’s name.
In October 2021, the Income Tax (I-T) Department conducted raids at over 50 locations across the country connected to the Hetero Group.
During the raids, the tax sleuths reportedly seized unaccounted-for cash amounting to ₹140 crore.
Following these events, Hetero Group Chairman B Partha Saradhi Reddy was nominated as a Rajya Sabha member by the BRS in June 2022.
Interestingly, just a couple of months before his nomination to the Rajya Sabha, the Hetero Group purchased 40 bonds valued at ₹1 crore each on 7 April, 2022.
Subsequently, Hetero Pharma made significant donations, totalling ₹60 crore, through three of its entities: Hetero Drugs Limited (₹30 crore), Hetero Labs Limited (₹25 crore), and Hetero Biopharma Limited (₹5 crore).
It’s worth noting that several pharmaceutical companies, which have also made political donations, have relationships with Hetero Pharma.
Honour Lab Limited, which made donations totalling ₹25 crore in two tranches in 2022 and 2023, has its Managing Director Rathnakar Reddy Kura serving as the director of both Hetero Drugs Limited and Hetero Labs Limited.
Furthermore, a tweet shared by the IPR Department of the Telangana government shows Rathnakar Reddy alongside the Hetero Group Chairman Partha Saradhi Reddy.
Hetero Drugs gave Rs 5 crore donation and Rs 5 crore worth medicines (to the government. Hetero Chairman SrI Parthasarathy Reddy,Director Sri Ratnakar Reddy gave Cheque to the CM and medicines to Medical and Health Minister Sri Etela Rajender.@TelanganaCMO @TelanganaHealth pic.twitter.com/96SjkTNkj8
— IPRDepartment (@IPRTelangana) March 30, 2020
Similarly, Hindys Lab Private Limited, which contributed ₹17.5 crore, has its Director Sambi Reddy Jonnala serving as a full-time director of Hetero Drugs Limited.
Another director of Hindys Lab, Kasireddy Subhas Chander Reddy, holds a directorial position at Honour Lab Limited.
Additionally, Sambi Reddy Jonnala is also a director at Selmar Lab Limited, which donated ₹15 crore. One of Selmar Lab’s other directors, Chandra Sekhar Tumuluru, is also associated with Hetero Biopharma Limited.
Another company, Hazelo Lab Private Limited, donated ₹12.5 crore, and its Director Kasireddy Subhas Chander Reddy is linked to Honour Lab Limited.
Furthermore, Dasami Lab Private Limited, which contributed ₹7.5 crore, is directed by Mohana Reddy Chilukuri, who is also a director of Hetero Labs Limited.
In total, the companies associated with Hetero Pharma appear to have donated ₹112.5 crore.
Aurobindo Pharma purchased multiple electoral bonds totalling ₹52 crore, consisting of bonds valued at ₹1 crore each, between 8 and 15 November, 2022.
Coincidentally, the company’s Director Sharath Chandra Reddy was arrested in connection with the Delhi liquor scandal during this period.
Additionally, Aurobindo Pharma acquired bonds through its subsidiary Eugia Pharma Specialities Limited, amounting to ₹15 crore, on 8 November, 2023.
Furthermore, it purchased bonds worth ₹10 crore on the same date through another subsidiary, APL Healthcare Limited.
In total, the company invested ₹77 crore in electoral bonds.
Hyderabad-based MSN Pharmaceuticals acquired electoral bonds through four entities.
The company purchased ₹26 crore worth of bonds through MSN Pharmachem, ₹10 crore through MSN Laboratories, and ₹2 crore worth of bonds through MSN Organic.
In an intriguing development, MSN Pharmaceuticals also procured ₹2 crore worth of bonds through an entity named Maithri Laboratories in November 2023.
Hyderabad, being the nucleus of pharmaceutical companies, has witnessed substantial contributions to political parties through electoral bonds from these entities.
Among the notable contributors, Dr Reddy’s Laboratories emerges as the top donor, having purchased electoral bonds worth ₹84 crore over the years.
Natco Pharma made significant contributions with bonds as well, totalling ₹69.25 crore. Meanwhile, Divi’s Laboratories purchased bonds worth ₹55 crore.
Furthermore, two pharmaceutical giants involved in the development and manufacturing of Covid-19 vaccines in the city also participated in political donations through electoral bonds.
Bharat Biotech, the manufacturer of Covaxin, contributed ₹10 crore, while Biological E, the manufacturer of Corbevax, purchased bonds worth ₹5 crore.
My Home Constructions, a prominent real-estate-development company headquartered in Hyderabad, faced an I-T raids in July 2019.
However, the company — founded by Dr Rameswar Rao Jupally in 1981 — eventually cleared its name.
In 2023, My Home Constructions donated ₹24.50 crore to purchase electoral bonds.
Its lesser-known subsidiaries — such as Tellapur Technocity Private Limited — acquired ₹20 crore worth of bonds in the same year.
Aqua Space Developers, another subsidiary, invested ₹15 crore in electoral bonds in 2023.
Overall, the company and its subsidiaries collectively purchased electoral bonds worth ₹59.5 crore.
Several infrastructure, construction, and real-estate companies from Telangana also made significant contributions to political parties through electoral bonds.
Sri Siddharth Infratech and Services stands out as a major donor, having purchased bonds worth ₹60.10 crore.
Similarly, NCC, a prominent real-estate and construction company, contributed ₹60 crore through electoral bonds.
Another Hyderabad-based company, Rithwick Projects, invested ₹45 crore in electoral bonds in April 2023.
Interestingly, a few months later, the company secured a project worth over ₹1,000 crore in Himachal Pradesh for constructing a dam.
Aparna, a well-known and rapidly expanding real-estate company in Hyderabad, utilised its subsidiary Aparna Farms and Estates LLP to purchase ₹30 crore worth of electoral bonds.
Additionally, city-based IT companies such as iLabs and Cyient also participated in political donations by purchasing bonds worth ₹5 crore each.
Yashoda Hospitals emerges as one of the largest donors to a political party, having purchased ₹162 crore worth of electoral bonds.
In December 2020, Yashoda Hospitals, based in Hyderabad, underwent a raid by I-T officials. The hospital donated ₹10 crore to the BJP through an electoral trust in 2021-22.
It is worth noting that another entity, Yashoda Super Speciality Hospital, located in Kaushambi in Uttar Pradesh’s Ghaziabad, has denied making any political donations.
Similarly, the Hyderabad-based Yashoda Hospitals has also denied making any contributions to political parties. It’s not clear which Yashoda Hospitals bought bonds worth ₹162 crore.
However, the owners of the Hyderabad-based hospital, including Chairman G Ravender Rao, Managing Director Dr G Surender Rao, and another Director G Devender Rao, individually purchased electoral bonds worth ₹1 crore each, totalling ₹3 crore.
(Edited by Arkadev Ghoshal)
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