Loading…
An investigative report has found that six Gujarat-based Registered Unrecognised Political Parties received about Rs 1,700 crore in donations in 2023-24, more than the combined receipts of the national parties other than the BJP.
The six fielded only 15 candidates in the 2024 Lok Sabha election, against 893 by the five national parties.
India has more than 2,800 RUPPs, of which only around 750 contested the 2024 general election; the rest are widely described as 'letter pad parties'.
RUPPs get tax exemption on donations, a common symbol and 20 star campaigners, in exchange for disclosure obligations under Section 29C of the Representation of the People Act, 1951.
The Election Commission cannot de-register a party except in narrow circumstances laid down by the Supreme Court in 2002, and the Law Commission's 255th report recommended changing that.
Lays down the procedure for registering an association as a political party with the Election Commission; registration alone makes a party an RUPP
Requires a party to report every contribution above Rs 20,000 to the Election Commission; failure costs it income tax exemption
Grants political parties exemption on voluntary contributions, house property income, capital gains and other income, subject to maintenance of accounts, the Rs 20,000 donor record and filing of the Section 29C report
Supreme Court held the Election Commission has no general power to de-register a party, except where registration was obtained by fraud, the party ceases to owe allegiance to the Constitution, or it is declared unlawful by the government
Recommended amending the law to allow de-registration of a party that has not contested an election for ten consecutive years
Registers parties under Section 29A, receives contribution reports under Section 29C and periodically delists non-functioning RUPPs; constituted under Article 324
Civil society organisation that analyses party finances and candidate affidavits; its PIL led to the 2002 disclosure judgment and later to the electoral bonds challenge
Administers the Section 13A exemption and can withdraw it where disclosure conditions are not met
Because donations to a compliant party are tax-exempt, a dormant party can function as a conduit: money is donated, the donor claims deduction, and the funds are returned less a commission. This is the mechanism behind demands for a CBI probe.
The Supreme Court struck down the electoral bonds scheme in February 2024 for violating the right to information; RUPP donations are the low-visibility channel that survived it.
Layering funds through dormant entities attracts the Prevention of Money Laundering Act, 2002, which is why enforcement agencies rather than the Election Commission end up leading such cases.
The Law Commission's 255th report tied de-registration powers to a wider package including mandatory inner-party elections and audited accounts.
GS Paper II > Salient features of the Representation of People's Act; statutory bodies; transparency and accountability
General Awareness > Indian polity and elections
Consider the following statements: 1. The Election Commission of India is a five-member body. 2. Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections. 3. Election Commission resolves the disputes relating to splits/mergers of recognised political parties. Which of the statements given above is/are correct?
Answer: 3 only
A party registered under Section 29A of the RP Act, 1951 that has not met the vote-share or seat criteria for state or national recognition
The annual statement of donations above Rs 20,000 that a party must file with the Election Commission under Section 29C
A leader whose campaign travel expenses are not charged to an individual candidate's expenditure ceiling — 40 for a recognised party, 20 for an RUPP