Why is the ECI de-listing Political Parties?

Context: The Election Commission of India (ECI) has initiated the process to de-list Registered Unrecognised Political Parties (RUPPs).

De-listing Political Parties

• ECI has initiated steps to de-list 345 Registered Unrecognised Political Parties (RUPPs) that have not contested elections in the last six years and whose offices could not be physically located. 
• These parties, often termed as ‘letter pad parties’, exist only on paper and are typically inactive in electoral participation.
• In addition, political parties that have not updated their list of office bearers since 2014 have been declared ‘inactive’.
• The ECI has directed the Chief Electoral Officer of various States and Union Territories to issue show-cause notices to these RUPPs before deciding on de-listing them. 
• These parties are denied the benefit of: 
  • Putting up candidates with a common symbol in an election. 
  • Tax exemptions under Income Tax Act and RP Act. 

What are registered parties?

• Political parties are an association or body of individuals that can be formed by citizens. The right to form an association is a fundamental right guaranteed under Article 19(1)(c) of the Constitution to all citizens.
• Section 29A of the Representation of the People Act, 1951 (RP Act) lays down the requirements for registration of a political party with the ECI. 
• Any political party that seeks registration should submit a copy of its memorandum/constitution within 30 days of its formation stating:
  • Faith and allegiance to the Constitution of India. 
  • Allegiance to the principles of socialism, secularism and democracy, and uphold the sovereignty, unity and integrity of India.
• The ECI examines a political party’s constitution to ensure it includes provisions for internal democracy, such as regular elections for office bearers.
• Once registered, if it is not recognised as a state or national party, it is termed a  Registered Unrecognised Political Party (RUPP).

Benefits Enjoyed by RUPPs: 

The RUPPs enjoy the following benefits:  

• Tax exemption for donations received under Section 13A of the Income Tax Act, 1961.
• A common symbol for contesting general elections to the Lok Sabha/State Assemblies.
• 20 ‘star campaigners’ during election campaigns. 

However there exists few conditions:

• RUPPs are required to maintain the details of individual donors who have donated above ₹20,000 in a financial year and submit these details to the ECI every year. 
• As per Section 29C of the RP Act, failure to furnish these details will result in losing income tax exemption. 
• The RUPPs under the Income Tax Act, 1961, are further required to accept donations in excess of ₹2000 only through cheque or bank transfers. 

What is the issue ?

• The RP Act does not confer explicit powers on the ECI to de-register any political party if it fails to contest elections, conduct inner-party elections or lodge requisite returns. 
• The Supreme Court in Indian National Congress versus Institute of Social Welfare & Ors (2002) had held that the ECI does not have the power to de-register any political party under the RP Act. It may de-register only under exceptional circumstances such as:
  • the registration being obtained by fraud or
  • the political party ceasing to have allegiance to the Indian Constitution or
  • if it is declared unlawful by the Government.

What can be done ?

• The Law Commission in its 255th report (2015) had recommended amendments for de-registration of a political party if it fails to contest elections for 10 consecutive years. 
• The ECI in its memorandum for electoral reforms (2016) had also suggested an amendment to the RP Act that would empower it to de-register a party. 
• Another serious issue plaguing almost all political parties is the lack of inner-party democracy. As suggested by the Law Commission in its 170th and 255th report, the RP Act can be suitably amended to contain specific provisions for ensuring internal democracy in political parties.

Apart from the exercise of delisting RUPPs, these recommendations can also be implemented.