New Delhi: The Election Commission of India has initiated action for enforcing due compliances by Registered Unrecognized Political Parties (RUPPs) for relevant sections 29A and 29C of the Representation of People’s Act 1951. 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.
Out of 2354 RUPPs, over 92% RUPPs have not filed their Contribution Report in 2019, the ECI stated. Further, 199 RUPPs claimed Rs 445 crore Income Tax exemption in 2018-19. 219 RUPPs claimed Rs 608 crore IT exemption in 2019-20. Out of these, 66 RUPPs have claimed income tax exemption without submitting contribution reports in Form 24A as mandated under section 29C of the Act.
Besides, 87 RUPPs have been found to be not in existence, the ECI said.
While for the year 2019, 2056 RUPPs have not yet filed their Annual Audited Accounts, in General Elections 2019, out of 2354 RUPPs only 623 contested elections⁓70% RUPPs did not contest elections.
Out of 115 RUPPs (headquartered in the 5 election gone States of Assam, Kerala, West Bengal, Tamil Nadu & UT Puducherry) and which contested Assembly elections of 2021, only 15 RUPPs have filed their Election Expenditure Statement to date.
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 Commission has evidence of serious financial impropriety, willful attempts for tax evasion and other illegal financial activities against three specific Registered Unrecognized Political Parties (RUPPs) amounting to fraudulent use of privileges and public trust available to them.
There are 2796 Registered Unrecognized Political Parties (RUPP) as in September 2021, which is an increase of over 300% since 2001. Every RUPP so registered is required to comply with the following rules/instructions and directions:
- Section 29Cof RP Act 1951requires a RUPP to furnish a contribution report as prescribed in Form 24 A under Rule 85 B of Conduct of Election Rules 1961. Such contributions received by RUPPs are also 100%exempted from Income Tax as an incentive to the parties for strengthening the electoral democracy.
- Section 29A(9) mandates every political party to communicate any change in its name, head office, office bearers, address, PAN number to the Commission without delay.
- The political parties are mandated to also furnish Audited Annual Statements, flowing from ECI’s transparency guidelines dated 29/08/2014. The Supreme Court in Common Cause vs. UoI & Others (AIR 1996 SC 3081) has upheld the requirement of maintaining audited accounts by the political parties as mandatory and to be strictly enforced. The political parties, therefore, are under a statutory obligation to furnish a return of income for each assessment year to be eligible for exemption from income tax.
- The Political Party, [for being registered, as a condition precedent prescribed by ECI under its power under section 29 A (6)] needs to undertake to include in its constitution that it must contest an election conducted by the Election Commission within 5 years of its registration.
- Further, upon participation in an election, Political Parties are required to furnish their election expenditure statement within 75 days, in case of Assembly elections, and within 90 days, in case of Lok Sabha elections.
– global bihari bureau
