The scandal has forced the resignation of Bangaru Laxman, the president of the ruling Bharatiya Janata Party (BJP).
Following are extracts from the Tehelka tapes, which have unleashed a mounting political storm in India.
Bangaru Laxman
Tehelka: And today I will give you one lakh (100,000) rupees. For just the beginning. A New Year gift. Bangaru Laxman: Hmm, hmm.
T: Okay? But... but... but, tell me, sir, very frankly, (middleman) Mr RK Gupta told me he arranged the meeting. Outside the...
BL: I do not know what exactly transpired between you and him. He just... he was mentioning...
T: Okay.
T: Sir, this is a small gift... small gift.
BL: Oh, no, no...
T: It's a small gift for the New Year party. Right?
(Bangaru Laxman opens the drawer, takes money from Tehelka and puts it away)
T: New Year Party fund...? One lakh rupee...?
T: And then... rupee.
BL: When do you...?
T: Tomorrow. Rupee or dollar?
BL: Dollars. You can give dollars.
T: Okay. We can give you dollars. Sir, we need your blessing.
Samata Party leader Jaya Jaitley: So please send a word down that if anybody is fairly offering a good quality thing at a good price, they should also be considered.
Tehelka: Okay.
Jaya Jaitley: Because we don't have any extra interest in anybody. We have extra interest in the good quality and good price... In the interest of the nation. So that we'll ensure that they don't neglect you.
T: Okay
JJ: After that, it's up to you and your product.
T: That's all. That's all we're expecting... that's all... That's two lakhs (200,000 rupees). Two lakhs.
(Jaya Jaitley nods)
JJ: Thank you very much.