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Context

A new report by the Association for Democratic Reforms (ADR) revealed that 59% of Registered Unrecognised Political Parties (RUPPs) linked to Bihar failed to submit mandatory financial disclosures for FY 2023–24.

What Are Unrecognised Political Parties (RUPPs)?

RUPPs are political organisations registered with the Election Commission of India (ECI) under Section 29A of the Representation of the People Act, 1951, but they do not meet the criteria to be classified as National or State Parties.

The ECI categorises political parties as:

• National Parties
• State Parties
• Registered Unrecognised Parties (RUPPs)

Recognition depends on electoral performance—votes secured and seats won in Lok Sabha or Assembly elections.

Recognition Criteria:

• A National Party must secure at least 6% of valid votes in four or more states and win four Lok Sabha seats, or be recognised as a State Party in four or more states.
• A State Party must secure at least 6% of votes and two Assembly seats, or meet alternate thresholds such as 3% of seats or 8% of total valid votes in that state.

Privileges

Recognised parties enjoy exclusive election symbols, free airtime on Doordarshan and All India Radio, free electoral rolls, and the ability to nominate up to 40 Star Campaigners. 

RUPPs, however, have to pick symbols from a common list, get no free broadcast time, and are limited to 20 Star Campaigners. 

RUPPs benefit from tax exemptions under Section 13A of the Income Tax Act, 1961—a privilege that has become a concern.

The Growing Number of RUPPs

In 2001, India had 694 RUPPs. By 2025, that number exceeded 2,800.

• Some of these are small, local outfits that reflect regional aspirations.
• Many exist largely on paper—created to exploit financial loopholes or act as proxies for larger political players.

Challenges

The Representation of the People Act (1951) and ECI guidelines (since 2014) require all registered parties to:

• Maintain audited accounts,
• File annual audit reports, and
• Submit contribution statements disclosing all donations above ₹20,000.

ADR’s 2025 nationwide analysis revealed that RUPPs’ declared incomes surged by 223% in FY 2022–23, yet 73% of these parties failed to share financial details publicly.  

Why So Many Fail to Comply?

• Limited Capacity: Many smaller, genuine parties lack the administrative resources or expertise to manage accounts and file reports properly.
• Deliberate Concealment: Some intentionally avoid disclosures to hide illegal funding or money laundering.

The ECI’s Response

Delisting Drives: In 2025, the ECI delisted 808 RUPPs for non-compliance—334 in August and 474 in September—for failing to contest elections for six consecutive years or to file mandatory reports.

Online Reporting Portal: The Integrated Election Management System (iems.eci.gov.in) launched in 2023 enables online submission of contribution and audit reports to improve accessibility and monitoring.

Stricter Symbol Allocation Rules: Since 2024, RUPPs seeking common symbols must present audited accounts and election expenditure statements from the previous elections.

Way Forward 

Empower ECI to De-register: Amend the Representation of the People Act to allow de-registration for persistent non-compliance, financial fraud, or long-term inactivity.

Tighten Financial Rules:

• Lower or eliminate the ₹20,000 disclosure threshold.
• Enforce mandatory independent audits and make reports public.
• Impose heavy penalties for delayed or false reporting.

Reform Registration Criteria: Raise entry standards for party registration to prevent the creation of shell entities. 

Automated Deactivation: Parties failing to contest elections for two general cycles should automatically lose registration.

Conclusion

Unrecognized political parties undermine electoral transparency and democratic integrity by exploiting loopholes. To address this, financial transparency, empowering the Election Commission, legislative reforms, and enhanced accountability are essential to ensure parties truly represent public interest.

Source: INDIA TODAY