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New Delhi: The top ten Registered Unrecognised Political Parties (RUPP), including five from Gujarat, together had an income of Rs 3,014.27 crore between 2019-20 and 2023-24, according to Association for Democratic Reforms (ADR).
Bharatiya National Janata Dal from Gujarat topped the list with Rs 957.44 crore, followed by New India United Party (NIUP) with Rs 608.13 crore and Satyawadi Rakshak Party (SRP) with Rs 416.23 crore during the five fiscals. The NIUP and SRP are also based in Gujarat.
Bihar's Aam Janmat Party had an income of Rs 220.36 crore followed by Haryana's Rashtriya Vikas Party Rs 207.63 crore. Saurashtra Janta Paksha (Rs 200.42 crore) and Jan Man Party (Rs 133.56 crore), both registered in Gujarat, were ranked sixth and seventh. All these parties have contested recent elections.
The fiscal 2022-23 saw the top ten RUPPs garnering the highest income of Rs 1,581.75 crore, of which Rs 1,479.942 crore (93.56 per cent) came from donations above Rs 20,000. The top ten RUPPs declared Rs 1,564.81 crore as their total expenditure in 2022-23, which is nearly all of their income, suggesting they are spending almost everything they raise, the ADR said.
In comparison, the total income of national parties in 2022-23 was Rs 3,076.88 crore while that of state parties was Rs 1,740.48 crore.
RUPPs are either newly registered parties, those that have not secured enough votes or seats in elections to gain recognition as a national or state party, or those that have never contested elections since registration, the ADR said.
The ADR suggested that regulation of RUPPS is crucial to avoid money laundering, corrupt electoral practices, and abuse of money power. It wanted the EC to impose strict norms for the registration of a party apart from taking the stringent step of de-listing those which fail to adhere to the rules. The Income Tax scrutiny of RUPPS should be taken up, especially of those which do not contest in elections but declare voluntary contributions.
According to ADR, a significant 73.26 per cent of 2,764 RUPPs did not submit audit and contribution reports to the EC. Reporting rates vary dramatically across states, indicating potential differences in enforcement, capacity, or willingness to comply, the ADR said, adding that while reporting formats for audit and donations reports are available but several parties fail to adhere to it.
“Despite their unrecognised status, RUPPs are significant players in India's political ecosystem, often representing niche interests or regional aspirations. However, their financial operations, including income and expenditure, have raised concerns due to limited transparency and potential misuse of funds, prompting regulatory scrutiny,” it said.
Many RUPPs are suspected of existing solely to exploit tax exemptions under Section 13A of the Income Tax Act, 1961, without engaging in electoral activities, it said.