New Delhi: The Election Commission of India (ECI) on Wednesday said it has initiated action against over 2,100 registered unrecognised political parties (RUPPs) for non-compliance with statutory requirements, especially related to income tax exemptions and filing of the audited reports. The poll panel also noted that 66 parties claimed IT exemption in FY20 without complying with statutory requirements under the Representation of the People Act and 2,174 have not submitted contribution reports.
The Commission is cognizant that compliance to the conditions and regulations in the said Act are essential conditions for maintaining financial discipline, propriety, public accountability, transparency and empowering voters for making informed decisions. In the absence of required compliance, the electorate and ECI are deprived of basic factual information in ensuring ECI’s mandate of conducting free, fair and transparent elections,” the poll watchdog said in a statement on Wednesday.
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The Commission has evidence of serious financial impropriety, willful attempts for tax evasion and other illegal financial activities against three specific Registered Unrecognised Political Parties (RUPPs) amounting to fraudulent use of privileges and public trust available to them,” it added. Till September 2021, as many as 2,796 RUPPs were listed, which was an increase of over 300% since 2001. The Commission said the registered parties were required to comply with Section 29 C of the Act and furnish a contribution report. Such contributions were 100% exempted from income tax as an incentive to the parties for strengthening the electoral democracy.
Taking notice of this, ECI in a statement said, “Action to be initiated against those receiving donations without due statutory compliances. The action was initiated against three registered unrecognised political parties (RUPPs) reported being involved in serious financial impropriety. Eighty-seven non-existent RUPPs shall be deleted from the list and benefits under the Symbols Order (1968) withdrawn".
