Contractors and Cronyism: How Government Contracts Fuel BJP’s Coffers in India’s Northeast
December 17, 2025
In India’s northeastern states, where infrastructure development heavily depends on central and state government funding, a striking pattern has emerged in the funding of the ruling Bharatiya Janata Party (BJP). An investigation by The Reporters’ Collective reveals that more than half of the BJP’s declared donations from four key states—Assam, Arunachal Pradesh, Manipur, and Tripura—come from individuals and companies that have secured lucrative government contracts.
Between financial years 2022-23 and 2023-24, the BJP collected ₹77.63 crore in donations from these states. At least 54.89% of this amount traced back to contractors or entities that had won tenders from state or Union government agencies, often around the time of the donations.
A Region Dependent on Public Contracts
The Northeast’s economy is uniquely reliant on government spending for roads, bridges, hydropower projects, and other infrastructure. With limited private investment, businesses thrive by partnering with political elites to secure contracts. This dynamic appears to extend to political funding, where contractors contribute significantly to the party in power—the BJP, which governs at both the Center and in these states.
The investigation cross-referenced BJP’s donation reports submitted to the Election Commission of India (declaring contributions above ₹20,000) with public tender databases. While donations are legal and no illegality was established, the overlap raises questions about potential patronage and quid pro quo in a region already vulnerable to crony capitalism.
State-by-State Breakdown
- Assam: Contractors accounted for 64.48% of donations in FY 2022-23 and 52.34% in FY 2023-24. Notable donors include SPS Construction India Pvt Ltd, which donated ₹5 crore in the year it was involved in an 8.4 km bridge project; Badri Rai and Company (₹1 crore donor with multiple contracts, including a ₹140 crore police battalion project); and the Dhanuka group (₹3.35 crore in FY 2023-24, linked to health mission tenders).
- Tripura: The highest proportions—84.12% in FY 2022-23 and 61.7% in FY 2023-24—came from contractors.
- Arunachal Pradesh: Over 50% of donations above ₹20,000 in FY 2023-24 were linked to contract winners, such as Samson Borang’s Sedi Allied Agency (₹4.3 crore donation alongside public works and hydropower contracts).
- Manipur: Lower at around 5% in FY 2022-23, dropping to negligible levels in FY 2023-24 after ethnic violence erupted in May 2023, reducing overall collections to just ₹29.8 lakh.
Regional players like Star Cement also featured prominently, donating ₹5 crore in FY 2023-24 while securing 18 tenders across multiple northeastern states and signing a massive ₹3,200-crore project MoU with the Assam government.
A Case Study in Patronage: Aryavart International University in Tripura
One emblematic example highlights how donations align with political favors beyond traditional contracts. In Tripura, the Ira Social Charitable Trust—a Ghaziabad-registered entity—and its promoters donated ₹50 lakh to the BJP in FY 2023-24. In return, the BJP-led state government under Chief Minister Manik Saha passed a special law in 2023 allowing the trust to establish Aryavart International University.
The trust (₹30 lakh donation) and trustees Raman Kumar Roshan (₹10 lakh) and Gunjan Bansal (₹10 lakh) benefited from this legislative backing, essential for private universities in the state. High-profile BJP leaders, including Union Minister Nitin Gadkari and national spokesperson Sambit Patra, visited the modest campus in North Tripura, lending it political legitimacy.
The university, operating from a basic facility in Tilthai village with over 200 students, has faced protests over lack of UGC approval and student mistreatment. Neither the trust nor the government responded to queries linking donations to the approval process.
Methodology and Broader Implications
The analysis focused on disclosed donations, which represent only a fraction of total party funding (unknown sources often comprise 60-70%). Incomplete donor details limited the scope, making estimates conservative. Correlation does not prove causation, but the consistent pattern across states suggests a systemic reliance on contractor networks.
In a region where businesses must navigate government dependencies, such funding channels risk entrenching cronyism. While anti-corruption laws exist, they rarely scrutinize these legal exchanges. As the BJP consolidates power in the Northeast, these findings underscore the need for greater transparency in political financing to safeguard democratic integrity.
This investigation is based on Election Commission reports, tender databases, and company records.
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