Megha Engineering & Infrastructure Ltd (MEIL) is the second largest donor of the Electoral bonds. And the Bharatiya Janata Party redeemed maximum numbers of bonds donated by the company. Pamireddy Pichi Reddy and PV Krishna Reddy are the promoters of the Hyderabad based Megha Engineering that purchased Rs 966 crore worth bonds.
The MEIL was awarded with nine major projects, of which five were bagged by the company between 2019 and 2023. In five projects, the company purchased bonds close to the dates of contracts being awarded to the company that hinted towards possible quid pro quo between the company and the political party.
While in the remaining four projects Megha Engineering did buy the bonds around the time the contract was awarded but the bonds were not redeemed by the political parties who were responsible for awarding the projects. Thus there is no direct link of quid pro quo in these four instances.
In all nine instances, MEIL either purchased bonds before or after the contract was awarded to the company.
Of Rs 966 crore – Rs 584 crore went to BJP, while BRS received Rs 195 crore and DMK got Rs 85 crore.
Other political parties that received bonds were YSR Congress, Telugu Desam Party, Congress, Janta Dal (United), Janata Dal (Secular) and Janasena Party.
Here is the list of all parties who received donation through Bonds and their respective total donation amount.
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Project 1 – Thane-Borivali Twin Tunnel Project
MEIL was awarded with Rs 14,400 crore Thane – Borivali twin tunnel project in May 2013 by the Mumbai Metropolitan Region Development Authority.
MEIL bought electoral bonds worth Rs 140 crore, around the time when the contract was awarded to the company, of which Rs 115 crore were redeemed by the BJP.
Larsen & Toubro (L&T) who lost this project filed a case against MEIL in the Bombay High Court and alleged that the Mumbai Metropolitan Region Development Authority wrongfully rejected their bid. The court later quashed L&T’s petition.
“It is surprising to note the company is executing a project where the average cost of construction of a kilometer stretch would work out to Rs 50 cr which is way too high…are they planning to gold plate the road stretch? An investigation is needed that could reveal the disparity in the actual rate and the okayed cost. The project seems to have become an income source.” said MLA Jitendra Awhad of NCP (Sharad Pawar) on social media.
He cited examples of a road and bridge constructed in Thane which he alleged had suffered damage within months of construction but led to no investigation.
Megha was the lowest bidder with the offer of Rs 13,057 crore. But after the contract was awarded to Megha, the cost of the project was increased to Rs 14,400 crore.
Project 2 – Mongolia Refinery Project
In September 2023 the company got a 648 million dollars Mongolia Refinery project which was executed with the Indian government’s assistance. In October 2023 the company bought Rs 160 crore worth bonds of which Rs 150 crore went to the BJP.
Project 3- Hindustan Petroleum Corporation Rajasthan Refinery Projects
In October 2022, Megha Engineering got contracts worth a total of around Rs 3,200 crore from the Hindustan Petroleum Corporation Rajasthan Refinery. The project was a joint venture between Hindustan Petroleum Corporation (74 per cent equity) and the Rajasthan Government (26 per cent equity). The company purchased bonds in the same month worth Rs 10 crore of which 8 crores went to the BJP.
Project 4 – Hindustan Petroleum Corporation
In March 2021, MEIL got a civil works contract in Mangalore worth around Rs 300 crore from Hindustan Petroleum Corporation. On April 6 2021, the company purchased bonds worth Rs 38 crore of which Rs 33 crore went to BJP.
Project 5 – Natural Gas Corporation
In June-July 2019, the company bagged Rs 6000 crore worth contract from public sector energy Oil and Natural Gas Corporation (ONGC) for oil rigs. In May 2019 the company bought bonds worth Rs 60 crore of which Rs 53 crore were redeemed by the BJP. This period coincided with the 2019 Lok Sabha elections.
Bonds donated to those political parties who had no role in awarding the contract
Interestingly, MEIL bought Rs 20 crore worth of electoral bonds in October 2020 close on the heels of winning another order worth around Rs 800 crore from HPCL Rajasthan Refinery and the Rs 4,700-crore Zojila tunnel contract from the National Highways & Infrastructure Development Corporation (NHIDCL). However, all these bonds went to the DMK.
Project 6 – HPCL Rajasthan Refinery
In Oct 2020, the company bought Rs 20 crore bonds which was close to winning a contract worth 800 crore from HPCL Rajasthan Refinery.
Project 7 – Zojila Tunnel Project
The company got another project worth Rs 4700 crore Zojila tunnel contract from National highways and Infrastructure Development Corporation. The Rs 20 crore worth bond that it purchased all of it went to DMK.
Project 8 – HPCL Rajasthan Refinery
MEIL got over Rs 5000 crore contract from HPCL Rajasthan Refinery in Aug- Sept 2021. In Oct 2021 it purchased bonds worth Rs 100 crore which were redeemed by Bharat Rashtra Samithi. Thus no direct connection of quid pro quo.