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Bihar Assembly Election

₹14,000 cr World Bank loan used in Bihar polls: PK's party

Prashant Kishor's Jan Suraaj Party's reaction came a day after it failed to open its account in the Bihar assembly elections.

News Arena Network - Patna - UPDATED: November 16, 2025, 10:07 AM - 2 min read

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A file photo of Prashant Kishor.


In a scathing post-election critique, the newly formed Jan Suraaj Party, led by former poll strategist Prashant Kishor, has alleged that the Bihar government under Chief Minister Nitish Kumar misused public funds on an unprecedented scale to influence the 2025 assembly elections. 


The party, which made its electoral debut but failed to secure a single seat, claimed that a substantial portion of a World Bank loan—estimated at Rs 14,000 crore—was diverted to finance populist schemes, doles, and freebies aimed at swaying voters.


Addressing reporters on Saturday, —just a day after the election results were declared—Jan Suraaj Party's national president, Uday Singh, levelled serious charges against the Nitish Kumar-led administration. Singh, a former Bharatiya Janata Party (BJP) MP, asserted that the government had splurged approximately Rs 40,000 crore in public money from June 2025 until the announcement of the polls to "purchase" votes.

 

 


"The scale was unprecedented. Even Rs 14,000 crore of the loan they received from the World Bank has been diverted for doles and freebies," Singh alleged. He emphasised that this diversion occurred despite the funds being intended for developmental projects, redirecting them instead toward electoral handouts.


Singh specifically highlighted the 'Mukhyamantri Mahila Rojgar Yojana', a scheme under which Rs 10,000 was directly transferred to the bank accounts of women across Bihar in the lead-up to the two-phased elections. "It must have been the first time that people kept getting the money till a day before voting took place, despite the model code of conduct (MCC) being in effect. This was enough to sway women who may have been living hand-to-mouth," he said, pointing out how the timing of these transfers violated the spirit of fair elections.


He further claimed that without such lavish spending of taxpayer money, the National Democratic Alliance (NDA)—comprising the BJP, Janata Dal (United) or JDU, and allies—would have faced a rout. "The NDA, which has retained power in Bihar, would have been decimated had public money not been splurged to buy out votes," Singh stated.


Adding to the narrative, Singh credited his party's campaign for forcing policy changes. "Please remember that it was not until the Jan Suraaj Party promised Rs 2,000 as old-age pension that the government raised the amount from Rs 700 to Rs 1,100 per month," he noted, suggesting that their entry into the fray compelled the ruling alliance to enhance welfare measures reactively.


Fear of 'Jungle Raj' and Voter Shift


Singh also attributed part of his party's poor performance to lingering fears among voters about a potential return to lawlessness under the Rashtriya Janata Dal (RJD).

 

"I can say there was fear of the return of jungle raj under the RJD. Although I am not saying that there has been any jungle raj, the fear was there. Many people, who would have given us a chance, ended up voting for the NDA out of that fear," the former BJP MP explained. This psychological factor, he argued, consolidated support for the NDA among sections that might otherwise have experimented with the newcomer Jan Suraaj Party.


Corroboration from Party Colleague Pavan Verma


Echoing Singh's accusations, senior Jan Suraaj leader and former diplomat Pavan Verma provided additional details in an interview with mediapersons. Verma referenced a larger World Bank fund of Rs 21,000 crore, alleging that portions were syphoned off for electoral purposes.


"The public debt in Bihar currently stands at Rs 4,06,000 crore. The interest per day is Rs 63 crore. The treasury is empty," Verma said, painting a picture of fiscal strain. "We have information, which could also be wrong, that the amount of Rs 10,000 given to women in the state was disbursed from Rs 21,000 crore, which came from the World Bank for some other project. An hour before the model code of conduct for the polls came into force, Rs 14,000 crore was taken out and distributed to 1.25 crore women in the state.


"Verma was cautious in his phrasing, adding, "As I have said, this is our information. If it is wrong, I seek forgiveness. But if it is true, then the question arises as to how far this is ethical. It is possible that, legally, you cannot do anything. The government can divert funds and later give explanations. Explanations will come after the election."


As of now, there has been no immediate response from any NDA leader, the Bihar government, or Chief Minister Nitish Kumar to these allegations. The claims remain unverified by official sources, and the Election Commission of India has not commented on potential MCC violations related to the fund transfers.


Bihar Assembly Election Results 2025: NDA's Dominant Victory


The allegations come against the backdrop of a decisive NDA win in the Bihar assembly elections, where the alliance secured a comfortable majority in the 243-member House.

NDA Tally: 202 seats

  • BJP: 89 seats
  • JDU (led by Nitish Kumar): 85 seats
  • Lok Janshakti Party (Ram Vilas), led by Union Minister Chirag Paswan: 19 seats
  • Hindustani Awam Morcha, led by Union Minister Jitan Ram Manjhi: 5 seats
  • Rashtriya Lok Morcha, led by Rajya Sabha MP Upendra Kushwaha: 4 seats

The opposition Mahagathbandhan, anchored by the RJD, was reduced to a paltry 35 seats, marking a significant setback.


Mahagathbandhan Tally: 35 seats

  • RJD: 25 seats (its second-worst performance after the 2010 elections)
  • Congress: 6 seats (down from 19 in the previous assembly)
  • CPI(ML) Liberation: 2 seats
  • CPI(M): 1 seat
  • CPI: 0 seats

Other notable outcomes included the All India Majlis-e-Ittehadul Muslimeen (AIMIM), led by Hyderabad MP Asaduddin Owaisi, winning 5 seats. Mukesh Sahani's Vikassheel Insaan Party (VIP) failed to open its account, mirroring the fate of the Jan Suraaj Party.


The elections were conducted in two phases—November 6 and November 11 —and witnessed a record voter turnout of over 66 percent, the highest in Bihar since the state's first assembly polls in 1951. This high participation underscored the intense political contest, even as the Jan Suraaj Party's allegations highlight concerns over the use of state resources in campaigning.


The Jan Suraaj Party's debut, though seatless, has positioned it as a vocal critic of the establishment, with Prashant Kishor vowing to continue his grassroots movement for governance reforms in Bihar. The controversy over the alleged World Bank fund diversion is likely to fuel debates on electoral ethics and fiscal accountability in the coming days.

 

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