{"id":123902,"date":"2026-09-11T12:30:35","date_gmt":"2026-09-11T07:00:35","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=123902"},"modified":"2026-09-11T12:30:35","modified_gmt":"2026-09-11T07:00:35","slug":"registered-unrecognised-political-parties-fixing-political-funding-gaps","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/registered-unrecognised-political-parties-fixing-political-funding-gaps\/","title":{"rendered":"Registered Unrecognised Political Parties: Fixing Political Funding Gaps"},"content":{"rendered":"<h2><b>Registered Unrecognised Political Parties Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A recent media investigation has revealed that six <\/span><a href=\"http:\/\/vajiramandravi.com\/current-affairs\/registered-unrecognised-political-party\/\" target=\"_blank\"><b>Registered Unrecognised Political Parties (RUPPs)<\/b><\/a><span style=\"font-weight: 400;\">, all based in Gujarat, received donations of around Rs 1,700 crore in 2023-24. This is more than the combined donations of five nationally recognised parties, excluding the BJP, which received Rs 1,480 crore in the same period.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The revelation has raised serious concerns about opaque political funding and the misuse of tax exemptions by non-serious parties.<\/span><\/li>\n<\/ul>\n<h2><b>What Are Registered Political Parties<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Political parties are associations or bodies of individuals formed by citizens.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Section 29A<\/b><span style=\"font-weight: 400;\"> of the Representation of the People Act, 1951 (RP Act) lays down the requirements for registering a political party with the Election Commission (EC).\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After scrutiny of the documents submitted, the EC registers the party as RUPP.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">RUPPs enjoy <\/span><b>three key benefits<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Tax exemption on donations received under Section 12 of the Income Tax Act, 2025.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">A common symbol for contesting general elections to the Lok Sabha or State Assemblies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Twenty &#8220;star campaigners&#8221; during election campaigns.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In return, RUPPs must fulfil certain obligations:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Maintain details of individual donors contributing more than Rs 20,000 in a financial year and submit them to the EC annually.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Under Section 29C of the RP Act, failure to do so leads to loss of income tax exemption.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Accept donations above Rs 2,000 only through cheque or bank transfer, as required by the Income Tax Act, 2025.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><b>The Problem of &#8220;Letter Pad Parties&#8221;<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As per the EC notification, India had more than 2,800 RUPPs as of July, but only around 750 contested the 2024 general elections.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The rest have earned the moniker &#8220;letter pad parties&#8221;, existing largely on paper.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The core issue is the EC&#8217;s limited power. The RP Act <\/span><b>does not explicitly empower<\/b><span style=\"font-weight: 400;\"> the EC to de-register a party that fails to contest elections, conduct inner-party elections or file required returns.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In <\/span><b><i>Indian National Congress vs Institute of Social Welfare<\/i><\/b><span style=\"font-weight: 400;\"> &amp; Ors (2002), the Supreme Court held that the EC cannot de-register a political party under the RP Act, except in exceptional circumstances:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Registration obtained by fraud.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The party ceasing to owe allegiance to the Constitution.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The party being declared unlawful by the government.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The EC periodically publishes lists of de-listed RUPPs. The October 2025 notification contained over 800 such parties.<\/span><\/li>\n<\/ul>\n<h2><b>Why the Six Gujarat Parties Remain Active<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The six parties named in the investigation are Aam Janmat Party, Bharatiya National Janata Dal, Garib Kalyan Party, New India United Party, Satyawadi Rakshak Party and Swatantrata Abhivyakti Party.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">All remain on the EC&#8217;s active list as of October 2025 because they collectively fielded 15 candidates in the 2024 Lok Sabha elections.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Contesting a token number of seats allows them to retain their registration and tax benefits.<\/span><\/li>\n<\/ul>\n<h2><b>Poor Compliance and Lack of Transparency<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Association for Democratic Reforms (ADR) periodically publishes reports on RUPP compliance.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Its July 2025 report, analysing annual reports for 2022-23, found that reports of only 26 per cent of RUPPs were available in the public domain.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Poor compliance with statutory requirements, combined with weak transparency, allows these parties to function as opaque channels for tax evasion and money laundering.<\/span><\/li>\n<\/ul>\n<h2><b>Way Forward<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Empower the EC to de-register parties<\/b><span style=\"font-weight: 400;\">. The Law Commission, in its 255th report, recommended amendments to allow de-registration of a party that fails to contest elections for ten consecutive years.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The EC, in its 2016 memorandum on electoral reforms, also sought powers to de-register parties.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">These reforms would enable action against non-serious parties that serve merely as a front for illegal financial transactions.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strengthen enforcement<\/b><span style=\"font-weight: 400;\">. Even if de-registration powers are granted, parties may contest a few seats simply to meet the statutory requirement while continuing to misuse tax exemptions.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">In today&#8217;s digital environment, the Income Tax Department and other enforcement agencies can easily monitor the transactions of such parties.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Strict action against wrongdoing would act as a deterrent.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Introduce a vote threshold for tax exemptions<\/b><span style=\"font-weight: 400;\">. The EC had earlier suggested that tax exemptions be given only to parties that win seats in the Lok Sabha or State Assemblies.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Analysts consider this undemocratic and extreme, since many parties contest elections consistently without winning.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Instead, they propose a vote percentage threshold, similar to the 1 per cent vote threshold used for allotting common symbols to RUPPs.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Only parties crossing this threshold should be eligible for tax exemptions on donations.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><b>Conclusion<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The RUPP framework was designed to nurture political participation, but weak statutory provisions and poor compliance have turned it into a loophole for opaque funding.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Empowering the EC to de-register non-serious parties, strengthening enforcement and linking tax exemptions to a reasonable vote threshold would restore integrity to political funding without stifling genuine small parties.<\/span><\/li>\n<\/ul>\n<p><strong>Source: <a href=\"https:\/\/www.thehindu.com\/news\/national\/karnataka\/eight-karnataka-based-registered-unrecognised-parties-delisted\/article65899150.ece\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a> | <a href=\"https:\/\/www.thehindubusinessline.com\/news\/exploiting-loopholes-in-law-rupps-mushroom-from-694-in-2001-to-3264-in-2024\/article69354455.ece\" target=\"_blank\" rel=\"nofollow noopener\">BL<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Registered Unrecognised Political Parties face scrutiny over opaque funding, weak compliance and tax exemptions, highlighting the need for stronger Election Commission oversight.<\/p>\n","protected":false},"author":18,"featured_media":123954,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[60,10166,22,59],"class_list":["post-123902","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-mains-current-affairs","tag-mains-articles","tag-registered-unrecognised-political-parties","tag-upsc-current-affairs","tag-upsc-mains-current-affairs","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/123902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=123902"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/123902\/revisions"}],"predecessor-version":[{"id":123955,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/123902\/revisions\/123955"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/123954"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=123902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=123902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=123902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}