NationalThe Hindu
How should RUPPs be regulated? | Explained
The article examines regulatory challenges surrounding Registered Unrecognised Political Parties (RUPPs) in India, highlighting their misuse for tax benefits and money laundering despite poor electoral compliance. It discusses the Election Commission's limited powers to de-register parties, the need for vote thresholds to claim tax exemptions, and transparency reforms. The issue is critical for polity and governance sections as it involves electoral reforms, RPA 1951 provisions, and EC's constitutional authority under Article 324.
Exam-ready takeaways
- RUPPs are registered under Section 29A of Representation of People Act, 1951 but not recognised as state/national parties by EC
- Over 2,500 RUPPs exist; many inactive for years but retain tax exemption under Section 13A of Income Tax Act
- Election Commission cannot de-register parties — only Supreme Court can, per 2002 ruling (Indian National Congress vs Institute of Social Welfare)
- EC proposed 2016 amendment: parties securing <1% votes in LS/Assembly polls should lose tax benefits
- Law Commission 255th Report (2015) recommended deregistration of parties not contesting elections for 10 consecutive years
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EC proposed 2016 amendment: parties securing <[ … ] votes in LS/Assembly polls should lose tax benefits
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EC proposed 2016 amendment: parties securing <1% votes in LS/Assembly polls should lose tax benefits
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