Why is the Election Commission of India De-listing Political Parties?

Why in the News?

The Election Commission of India (ECI) has initiated a de-listing drive against 345 Registered Unrecognised Political Parties (RUPPs) that have not contested any election in the last six years and could not be physically located, sparking concerns over misuse of legal status, income tax exemptions, and electoral integrity.

Background

• The right to form political associations is a fundamental right under Article 19(1)(c) of the Constitution.
• Under Section 29A of the Representation of the People (RP) Act, 1951, any political association can register with the ECI.
• Once registered, these are called Registered Unrecognised Political Parties (RUPPs).
• Registration criteria include submission of the party constitution, allegiance to constitutional values, and provisions for internal democracy.

Features of RUPPs

• Privileges enjoyed:
• Tax exemption on donations (Section 13A, Income Tax Act).
• Allotment of a common symbol for elections.
• Permission for 20 star campaigners during elections.

Obligations:

• Maintain donor records (above ₹20,000).
• Accept donations over ₹2,000 only via cheque/bank transfer.
• File annual contribution and expenditure reports.
• Present numbers (as of May 2025):

• 2,800+ RUPPs registered.
• Only ~750 contested in the 2024 Lok Sabha elections.
• Many inactive RUPPs are termed as ‘letter pad parties’.

Challenges

No explicit deregistration power with ECI:

• As per the SC ruling (Indian National Congress v. Institute of Social Welfare, 2002), ECI can only de-register if:
• Registration was obtained by fraud.
• The party ceases allegiance to the Constitution.
• It is declared unlawful by the government.

Misuse of tax benefits:

• RUPPs continue to avail tax exemptions without actually contesting elections.
• Lack of inner-party democracy:
  Despite legal expectations, no strict mechanisms enforce internal elections or democratic functioning.

Non-compliance and non-traceability:

• ECI is unable to locate physical addresses or an updated list of office-bearers.
  As of 2025, 281 de-listed and 217 inactive RUPPs identified.

No direct penalty for dormancy:

• Parties not contesting elections for years still enjoy legal status unless fraudulent.
• IT infrastructure not fully linked:
  Delays in real-time compliance monitoring due to a lack of automated linkage between the Income Tax Dept., ECI, and CAG.

Way Forward

Amendments to RP Act (as per Law Commission & ECI suggestions):

• Law Commission’s 255th Report (2015): De-registration after 10 years of electoral inactivity.
  ECI’s 2016 memorandum: Seeks explicit de-registration power.

Mandatory annual compliance:

• Automate the audit of donation records and election participation through CCTNS-like tech tools.

Link tax benefits to electoral activity:

• Withdrawal of Section 13A tax exemption for parties not contesting for defined periods.

Reinforce internal democracy:

• Amend the RP Act to mandate periodic internal elections and audits by external bodies.

Empower ECI without politicisation:

• Ensure constitutional safeguards for ECI’s independence while granting limited supervisory powers.

Transparency in funding:

• Implement real-time digital disclosure of donations and expenditure.
• Digitised and geotagged office validation:
  Periodic verification of party offices through digital platforms and local verification.

Conclusion

Question: While the ECI’s current de-listing exercise is legally limited, it is a step toward electoral hygiene and democratic accountability. To deal effectively with inactive and bogus political parties, India must urgently bring in legal reforms empowering the ECI, strengthen institutional oversight, and foster transparency and internal democracy within parties.

MAINS PRACTICE QUESTION

Question: Discuss the challenges posed by the proliferation of Registered Unrecognised Political Parties (RUPPs) in India. In this context, critically evaluate the role of the Election Commission of India (ECI) in regulating political parties and suggest necessary reforms to ensure electoral integrity and transparency.

PRELIMS PRACTICE QUESTION