Samajwadi Party has dropped its association with election consultancy firm Indian Political Action Committee (I-PAC) for reasons of financial constraint ahead of the critical Uttar Pradesh Assembly polls, party chief Akhilesh Yadav said.

In a press conference on Wednesday in Lucknow, Yadav clarified that the termination of the contract was not based on a performance in the election but due to lack of finances. He had complained that the Bharatiya Janata Party (BJP) was blocking financial resources to the party. He said that they did not drop the contract over the results, but just did not have the finances. The BJP didn’t allow funds to reach them.”

Yadav pointed out that the SP had interacted with I-PAC on a relatively short basis, for a few months. The party first considered professional campaign management but they went so far as to establish such a relationship that would have needed a lot of funding, he added. He also made a veiled criticism on the political consultancy sector, saying that there are different “winning agencies” in the market.

Started by political strategist Prashant Kishor, I-PAC has been instrumental in many prominent election campaigns in India. The firm has, however, been in hot water lately after the arrest of its co-founder Vinesh Chandel by the Enforcement Directorate in a money laundering case related to the alleged coal scam in West Bengal. Chandel has since been granted bail but the dispute seems to have exacerbated the party’s split.

The Samajwadi Party is preparing for a titanic battle with the BJP in the upcoming elections in Uttar Pradesh as it pushes for a solid bottom-up campaign plan in the face of financial and political constraints.