RUPPs have failed to fulfil the essential condition of contesting even a single election for the last six years since 2019 and also their offices could not be physically located anywhere.
- The ECI will take the final decision on delisting, which would end all benefits enjoyed by RUPPs.
Registration Of Political Parties
- Section 29A of the Representation of the People Act, 1951 (RPA,51): Lays down the requirements for registration of a political party with the ECI.
- However, the ECI does not have power to de-register (different from de-listing) any political party under the RPA, 51 [case law: Indian National Congress versus Institute of Social Welfare (2002)
Concerns Posed by RUPPS
- Compliance-Related Concern: Non-submission of Mandatory Contribution Reports under Section 29C of the RPA, 1951.
- Financial Irregularities and Tax Abuse
- Improper Claims of Income Tax Exemptions: In FY 2019–20, 219 RUPPs claimed ₹608 crore.
- Alleged Serious Financial Impropriety: Fake donation receipts; Use of shell companies; Bogus transactions and purchases, etc.
- No Electoral Participation: In General Elections 2019, around 70% did not contest, despite being registered.
Ways to Deal with Errant RUPPS?
- Law Commission's 255th report (2015): Automatic de-registration of parties failing to contest elections for 10 consecutive years.
- ECI's 2016 memorandum: Suggested amending law to empower ECI to de-register political parties.
