Source– The post is based on the article “RUPP & Tough: EC’s move to weed shady political parties should look at some funding provisions too” published in The Times of India on 9th September 2022.
Syllabus: GS2- Salient features of Representation of People Act
News- The article explains the issues related with registered Unrecognised Political Parties(URPP) in India.
Recently, Income tax officials recently carried out raids on URPPs in a larger clean-up process.
What are some facts about Unrecognised Political Parties(URPPs)?
EC data shows that in 2021 there were 2796 Registered unrecognised political parties. It is an increase of 300% over last two decades. In 2019, Lok Sabha elections, only 30% of these parties contested elections.
100% tax exemptions are given to them subject to certain conditions.
Like recognised parties they need not to disclose cash donations upto Rs. 2000.
Why does the system get abused?
Combination of tax exemptions, anonymity in funding and easy registration encourages formations of such parties.
Introduction of electoral bonds is also problematic because it allows anonymity and problematic sources of funding political parties.