"Gaps in Regulation of Political Party Finance Examined"
RUPP
a Registered Unrecognised Political Party, registered under Section 29A but not granted recognition status by the ECI.
Delisting
removal of a party from the ECI's active list for not contesting elections; not the same as deregistration.
Political parties sit at the centre of India's electoral democracy. Yet the Constitution barely mentions them. The only direct reference is in the Tenth Schedule, which deals with anti-defection law. Parties function legally as voluntary associations. This status comes from the freedom of association guaranteed under Article 19(1)(c). No separate law defines whether a party must be structured as a company, a trust, or a society.
Registration of parties is governed by Section 29A of the Representation of the People Act, 1951. The Election Commission of India (ECI) administers this registration. Once registered, a party can receive contributions under Section 29B of the same Act. It also becomes eligible for income-tax exemption on donations under Section 13A of the Income-tax Act, 1961. This exemption applies even if the party never wins, or even contests, an election.
Recognition is a separate and higher legal status. It is governed by the Election Symbols (Reservation and Allotment) Order, 1968. This Order distinguishes recognised National and State parties from a much larger pool of Registered Unrecognised Political Parties, or RUPPs. In 1994, Chief Election Commissioner T.N. Seshan criticised the "adhocism" in party functioning. He introduced Order 16A, giving the ECI power to suspend or withdraw a party's recognition for violating the Model Code of Conduct. Later ECI guidelines required parties to contest an election within five years of registration. A party that does not contest continuously for six years is automatically delisted.
Delisting is not the same as deregistration. The ECI generally has no statutory power to strike a party off the register altogether. A delisted or unrecognised party remains a legal entity. It can still receive donations. It can still, in principle, claim the tax exemption meant for genuine political activity. This gap is what allows some RUPPs to function like shell companies. They can accept money and claim exemptions without ever seriously fighting an election.
The ECI's adjudicatory power also has clear limits. When a party splits, the ECI decides which faction keeps the original name and symbol. …
Consider the following statements:
1.Union Territories are not represented in the Rajya Sabha.
2.It is within the purview of the Chief Election Commissioner to adjudicate the election disputes.
3.According to the Constitution of India, the Parliament consists of the Lok Sabha and the Rajya Sabha only.
Which of the statements given above is/are correct?
Match List-I with List-II and select the correct answer using the code given below:
List-I
A.Section 29A, RPA 1951
B.Section 13A, Income-tax Act
C.Election Symbols Order, 1968
D.Tenth Schedule
List-II
1.Anti-defection law
2.Registration of political parties
3.Recognition and symbol allotment
4.Tax exemption for political parties
Which of the following disputes fall within the adjudicatory jurisdiction of the Election Commission of India?
1.Deciding which faction of a split party retains the party's name and symbol
2.Adjudicating a dispute over the result of a parliamentary election
3.Suspending or withdrawing recognition of a party for violation of the Model Code of Conduct
Select the correct answer using the code given below:
Consider the following statements regarding Registered Unrecognised Political Parties (RUPPs) in India:
1.RUPPs are registered under Section 29A of the Representation of the People Act, 1951.
2.The Election Commission of India can deregister a RUPP for failing to contest elections continuously for six years.
3.RUPPs remain eligible to receive donations under Section 29B of the RPA even after being delisted.
How many of the above statements are correct?
With reference to the Electoral Bonds Scheme, consider the following statements:
1.It was introduced through the Finance Act, 2017.
2.The Supreme Court declared the scheme unconstitutional in 2024.
Which of the statements given above is/are correct?
The power of the Election Commission of India to suspend or withdraw recognition of a political party for violating the Model Code of Conduct is derived from:
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