The Bahujan Samaj Party’s (BSP’s) balance sheet is a study in how to manipulate accounts.
The Bahujan Samaj Party’s (BSP’s) balance sheet mirrors a trend the nation is increasingly witnessing in affidavits filed by members of parliament seeking a reelection – that of a quantum leap in assets from 2004 to 2009. It is also a study in how to manipulate accounts.
Despite being a regional party mostly confined to Uttar Pradesh (UP), I-T returns suggest, BSP’s net worth grew from Rs11 crore in 2001-02 to over Rs44 crore in 2005-06.
In 2001-02, the party’s income was Rs5.90 crore, which shot up to Rs29.50 crore in 2002-03.
A major portion (Rs22.31 crore) of its income in 2002-03 came from donations, while it received over Rs31 crore during 2001-06. Another major source of its income in the five-year period was membership fees, which swelled its coffers by Rs22.70 crore.
BSP’s changing fortunes are also reflected in its immovable assets. The party had assets worth Rs98,000 in 2001-02, Rs58.77 lakh the next year, Rs9.36 crore in the subsequent year and Rs11.72 crore in 2005-06.
Similarly, the party’s expenditure shot up. If it was paying Rs9,301 for electricity and water in 2001-02, it paid Rs2.90 lakh and Rs7.61 lakh for the services in 2003-04 and 2005-06. Its expense on rent also sharply increased from Rs1 lakh in 2001-02 to Rs87.40 lakh in 2005-06.
Every party is supposed to declare donations above Rs20,000 to the election commission (EC), though this is voluntary. BSP used this ‘voluntary’ clause to advantage.
While filing I-T returns, it said it received Rs19 lakh from ITC in 2004-05, but kept this information from EC.
To offset profits shown in its balance sheet, the party has also shown unbelievable losses. For example, in fiscal 2005-06 it sold five properties — two in Lucknow and three in Hyderabad – at a loss of over Rs6.35 lakh. All these properties were purchased and sold in the same year and at a time when there was a real estate boom.
The purchase, sale and loss cycle is, in fact, a regular feature of the BSP balance sheet. In 2001-02, the party sold five vehicles, one of which was purchased the same year, at a total loss of close to Rs10 lakh. In 2002-03, it sold another eight vehicles, two of which were purchased the same year, at a total loss of over Rs22.30 lakh. In 2004-05, another seven vehicles were sold at a loss of over Rs32 lakh.
I-T returns suggest BSP purchased a plasma TV for Rs2.30 lakh in 2005-06 but disposed it of at a loss of Rs1.05 lakh.
There are several other entries in the BSP balance sheet that are puzzling. For example, the party has not shown any salary disbursal to office-bearers for three years — 2001-02 and 2002-03. In 2003-04, however, a sudden spurt of Rs2.54 crore in salaries is mentioned, followed by another zero-salary year. In 2005-06, the salary expenditure was Rs3.12 lakh. Irrational?
BSP’s major expenditure — Rs14.56 crore during 2001-06 — has been on purchase and construction of immovable assets such as land. Rs4.14 crore has been expended on purchase of movable assets such as cars and furniture.
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