Unrecognised parties transparent, still behind national, regional parties

Just one in every four registered unrecognised political parties (RUPPs) had their audited annual statements in public domain for 2022-23 (FY23).

 

Despite a really low compliance rate, it is still more than four times compared to the measly rate of 5.43 per cent during FY18.

 

Data from the Association for Democratic Reforms (ADR) suggests that RUPPs have higher compliance in submitting their audited annual statements and contribution reports to state chief electoral officers (CEOs). The scanned copies are then uploaded on the websites of different state CEOs for public viewing within three days of receipt of these documents.

 

In FY18, merely 125 RUPPs (5.43 per cent) had their audited statements, and 82 RUPPs (3.56 per cent) had their contribution reports in public domain, according to ADR reports published in 2020 and 2021.

 

These numbers have grown manifold to 24.13 per cent and 20.73 per cent for audited annual statements and contribution reports, respectively, in FY23, reflecting a substantial rise in compliance level.

 

This assumes significance because of concerns regarding transparency and potential misuse of funds in operations of RUPPs, which primarily depend on voluntary contributions and donations from individuals and corporations. 

 

On the other hand, the share of regional or state parties not submitting their audited statements increased marginally from 15 parties out of 52 (28.84 per cent) in FY19 to 18 parties out of 57 (31.58 per cent) in FY23.

 

Moreover, the share of regional parties submitting their annual documents within the due date has fallen sharply from 44.23 per cent in FY19 to 28.07 per cent during FY23. This signifies a greater proportion of regional parties filing delayed documents.

 

A similar trend is visible for national parties too. In FY23, only one of six national parties filed their audited statements before October 31, 2023, the due date to submit these documents. 

 

During FY19, four of seven national parties filed their contribution reports on time (57.14 per cent). This reduced to just 2 out of 6 national parties in FY23 (33.33 per cent).

 

Further, there has been a decline in the non-compliance of regional parties in submission of reports of contribution — from 50 per cent in FY19 to 38.6 per cent during FY23. Section 29C of the Representation of People Act, 1951 mandates political parties to submit their contribution details in excess of  ₹20,000 received, in order to enjoy 100 per cent tax exemption. 

 

Despite political parties being mandated to file their audited annual statements and contribution reports, the compliance level remains dismal for both recognised and unrecognised parties.

 

Even when compliant, major national and regional parties have often breached the due date to file their documents. Although the increased conformity of rules by RUPPs is a welcome change, the Election Commission of India (ECI) needs to enforce the requisite regulations strictly to bring transparency and accountability in India’s election system.