ECI’s Crackdown on Unrecognised Political Parties, Delisting 345 Defaulters from Political Registry

Unrecognised Political Parties Latest News

• The Election Commission of India (ECI) has initiated steps to de-list 345 Registered Unrecognised Political Parties (RUPPs).

Overview of Registered Unrecognised Political Parties (RUPPs)

• Registered Unrecognised Political Parties (RUPPs) are associations registered with the Election Commission of India (ECI) under Section 29A of the Representation of the People Act, 1951. 
• These parties are distinct from recognised national or state parties as they have not secured a sufficient vote share or seats in previous elections.
• Despite not having official recognition, RUPPs enjoy certain benefits:
  • Tax exemption under Section 13A of the Income Tax Act, 1961.
  • Eligibility for common poll symbols during elections.
  • Permission to nominate up to 20 ‘star campaigners’ for canvassing.
• They are, however, required to:
  • Contest elections periodically.
  • File annual audit accounts and contribution reports.
  • Disclose donations exceeding Rs. 20,000, and ensure that no donations above Rs. 2,000 are accepted in cash.

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Reasons Behind the Election Commission Delisting 345 RUPPs

• The Election Commission has initiated the process of delisting 345 RUPPs that have:
  • Not contested even a single election in the last six years.
  • Failed to maintain physical offices at their registered addresses.
  • Ignored statutory filing requirements, including financial disclosures.
• This is part of a broader clean-up initiated by the ECI, which began identifying and acting against “non-functional” parties as early as 2022. 
• Since then, 284 RUPPs have been delisted and 253 declared inactive for failing to comply. 
• The latest batch of 345 brings this drive to a sharper focus, particularly with upcoming elections in view.
• The Election Commission has tasked the Chief Electoral Officers (CEOs) of the respective States and UTs to issue show-cause notices to these parties before delisting. 
• Final decisions will be made based on the CEO’s recommendations.

Legal Framework and Loopholes

• The right to form a political association is protected under Article 19(1)(c) of the Constitution.
• Registration is governed by Section 29A of the RP Act, 1951, which does not grant ECI explicit power to de-register a political party once registered, except in cases of fraud or violation of constitutional allegiance.
• This legal vacuum means that while the ECI can delist or declare parties inactive (affecting their privileges), it cannot de-register them outright. 
• The Supreme Court, in Indian National Congress vs Institute of Social Welfare (2002), affirmed this interpretation.
• Thus, ECI’s current action is limited to delisting RUPPs from the list of parties eligible for benefits, not erasing them as legal entities.

Financial Implications and Risks

• Many of these parties were found to be:
  • Availing 100% tax exemptions despite non-compliance.
  • Operating as shell entities or even engaging in money laundering activities.
  • Selling nominations by fielding dummy candidates to extract withdrawal payments from major parties.
• By delisting such entities, the ECI aims to block misuse of public trust and state-sanctioned benefits.

Reforms Needed and Way Forward

• The Law Commission, in its 255th report (2015), recommended empowering the ECI to de-register parties that fail to contest elections for 10 consecutive years. 
• The ECI echoed this in its 2016 electoral reform memorandum.
• Additionally, the lack of inner-party democracy remains an unresolved concern. Many RUPPs, and even some recognised parties, operate without periodic internal elections or transparency in leadership appointments. 
• The 170th and 255th Law Commission Reports called for specific amendments to the RP Act to instill internal democracy.
• Policy Recommendations:
  • Amend the RP Act to explicitly allow de-registration for non-contesting or non-compliant parties.
  • Mandate inner-party democracy through legal provisions.
  • Establish independent auditing of party finances, possibly under a public accounting body.

Source: TH