EC delists 255 parties, to scrutinise finances

The Election Commission (EC) has delisted 255 registered unrecognised political parties, and asked the Central Board of Direct Taxes (CBDT) to probe if they were set-up to help money laundering.

The poll panel identified and delisted these parties over a period of time as they did not contest polls between 2005 and 2015.

The delisted parties include the Life Peaceful Party and Bharatiya Sahayog Congress of Karnataka; Congress of People, Native People’s Party and Naari Shakti Party of Maharashtra; Swarn Mahasabha of Uttar Pradesh. It sent the list to the CBDT on Wednesday so that necessary action could be initiated under the provisions of Sections 29B and 29C of the Representation of People’s Act, 1951.

The CBDT will now look into these parties’ finances as many of them were suspected to have come into existence with the sole objective of helping tax evaders legitimise their ill-gotten wealth.

Section 29B of the act entitles political parties to receive contributions, and Section 29C makes it mandatory for them to declare all contributions above Rs 20,000 and report the same to the EC.

Section 29C also provides that political parties would not be entitled to tax exemptions if they fail to report contributions above Rs 20,000. The poll panel decided to hold a review to find out if these parties still exist and function from their registered addresses.

“On such verification by the chief electoral officers of the states/Union Territories, it has been reported to the commission that some parties are no longer in existence or functioning,” the EC wrote to the CBDT.

The poll panel exercised its powers under Section 29A of the act and Para 17 of the Election Symbols (Reservation and Allotment) Order, 1968, to delist these parties.