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Samajwadi Party Ends Contract with I-PAC Citing Fund Constraints

The Samajwadi Party has ended its contract with the political consultancy firm I-PAC, citing financial constraints as the reason for the separation. Samajwadi Party president Akhilesh Yadav confirmed the decision, stating that the party could not sustain the arrangement due to a lack of sufficient funding. He dismissed speculation that the move was linked to recent election results in other states, emphasizing that financial limitations were the sole reason for severing ties.

According to details received by The Chenab Times, Yadav announced the termination of the association with I-PAC on Wednesday. The party had engaged the firm for a brief period in preparation for the 2027 Uttar Pradesh Assembly elections. However, the financial realities of the party made it unfeasible to continue the collaboration. Yadav suggested that if the media were to provide funds, the party might consider hiring another company, underscoring the severity of the financial constraints.

The decision comes amidst broader concerns surrounding I-PAC, including a recent Enforcement Directorate (ED) probe into alleged financial irregularities. The ED had arrested I-PAC co-founder Vinesh Chandel in connection with alleged financial irregularities linked to the alleged Bengal coal smuggling case. Investigators claimed that the firm used a financial model to convert black money into white money, with payments reportedly received through both formal banking channels and cash transactions. Chandel was granted bail last week. While the exact impact of the ED probe on the Samajwadi Party’s decision is not explicitly stated by Yadav, sources indicated that the arrest created doubts within the party about I-PAC’s ability to manage a high-pressure election campaign.

While the Samajwadi Party has ended its contract with I-PAC, it is reportedly continuing its work with another election management and social media consultancy, Showtime, with whom an agreement was signed approximately two months ago. I-PAC had been focusing its efforts on constituencies where the Samajwadi Party had experienced narrow losses in the previous Assembly elections. Many members of the I-PAC team assigned to Uttar Pradesh were reportedly operating from outside the state.

The termination of the contract marks a significant strategic shift for the Samajwadi Party as it gears up for the upcoming Uttar Pradesh Assembly elections in 2027. The party’s leadership appears to be reassessing its campaign strategy and financial management in light of these developments. The Samajwadi Party aims to intensify its campaign against the ruling Bharatiya Janata Party (BJP) in the state, focusing on issues such as unemployment, caste census, law and order, and farmers’ concerns. The party leadership intends to strengthen its internal organizational network and political machinery for future campaign planning, rather than solely relying on external consultancy firms. This move signifies a renewed focus on internal resource optimization and financial responsibility within the party’s operational framework.

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