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HomePoliticsFor three years, only 5% of unrecognised parties filed donation reports: ADR

For three years, only 5% of unrecognised parties filed donation reports: ADR

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Report raises fears of them being used as money laundering fronts or for electoral malpractice, calls for more stringent EC monitoring

New Delhi: In a disturbing report published Wednesday, the Association for Democratic Reforms (ADR) has found that on average, only five per cent of all unrecognised political parties filed their donation reports in the three-year period between 2013 and 2016.

In 2013-14, the report said, only 89 of the 1,627 unrecognised parties — barely 5 per cent — provided their financial details; the combined declared income was Rs 14.03 crore.

The following year, 106 of 1,737 unrecognised parties (6 per cent) declared a combined income of around Rs 6.86 crore.

In 2015-16, the numbers dip, when only 99 of 1,906 such parties (5 per cent) declared a combined income of just Rs 4.37 crore.

The number of unrecognised parties fluctuates with the years as the Election Commission (EC) continually updates its lists, adding some and removing others. The latest gazette notification issued by the EC, dated 13 April, 2018, states that as of now there are 2,044 unrecognised political parties.

Rajasthan the highest

The report notes that unrecognised parties from Rajasthan declared the highest income of Rs 10.79 crore in the three-year period, followed by Telangana (Rs 3.82 crore) and Haryana (Rs 2.74 crore).

“Such parties in Haryana, Uttar Pradesh, Tripura, Karnataka, Bihar, Assam, Himachal Pradesh and Jammu & Kashmir failed to submit their donation details for at least one of the three years considered,” the report said.

It also found that only 33 unrecognised parties submitted their donation reports for all the three years. Of these, 14 declared having received no donations in the three years.

What are unrecognised political parties

The unrecognised political parties, according to ADR, are those that have not secured enough percentage of votes in assembly or general elections to be classified as state or national parties, or those that have never contested in elections since being registered.

The parties are not entitled to some benefits that are accorded to national or regional ones. They cannot obtain land at a subsidised rate or get a reserved party symbol for electoral use. They also do not receive free electoral rolls.

They are, however, exempt from paying income tax as long as they file their I-T returns and annually submit details of donations received above Rs 20,000. “Even if the parties declare that they have not received any amount above Rs 20,000 from a single donor, they would still enjoy tax exemption,” the report states.

ADR recommendations

Fearing that these unrecognised parties could be used for money laundering and corrupt electoral practices, the ADR has called for the EC to impose strict norms for the registration of political parties and derecognise those parties that fail to adhere to the rules.

It also calls for the parties to be brought under the Right to Information (RTI) Act. “Full details of all donors should be made available for public scrutiny under the RTI. This would not only instil confidence of the public in the functioning and finances of political parties but would also strengthen the democratic process,” the report states.

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