Regulatory Framework on Political Parties in India

In the constitution, the only reference to political parties is found in the 10th schedule (disqualification). Framing and administering the rules for political parties comes under EC.  EC has the ultimate power to register or deny the registration of any association of people as a political party or assign it status of a national party.

RoPA 1951 makes it mandatory for any association of the individuals calling itself a political party to make application to EC for registration as a political party within 30 days following the date of its formation. The Election Commission’s decision in this matter is final.

Regarding the accountability, functioning, funding and expenditure RoPA has certain provisons which empower the EC for handling these. Via the section 29C of RoPA, all registered political parties are required to submit an annual report to the ECI on all contributions in excess of Rs 20,000, without which no political party is eligible for any tax relief provided to political parties under the RPA. EC can ask for all information regarding their funding and expenditure even as a requirement to register an association of people as political party.

However, the issue is that despite EC having overarching powers, trhere are almost no provisions with respect to penalties on defaulters.

Section 29A of RoPA makes EC a quasi-judicial body with reference to such matters. Due to this, once a political party is registered, the EC has no powers to review the registrations for having violated the undertaking given at the time of registration. EC can cancel the registration of a political party only on the grounds of a registration via fraudulent means or declared unlawful by court / government or if the party itself says that it has ceased to exist.

In conclusion EC has symbolic powers regarding the registration and de-registration of the parties.

Regarding reforms, the M.N. Venkatachaliah committee had recommended for a separate legislation to regulate political parties. This recommendation along with some other reports of law commission led to creation of the draft Political Parties (Registration and Regulation of Affairs, etc) Bill, 2011. This bill was prepared by Centre for Standards in Public Life (CSPL). It was never introduced in any house, but its provisions can help you to make good points in your answer. These are as follows:

• It made legally binding provisions of maintenance and reporting of funds in excess of Rs. 20000.
• It set strict norms for observance of internal democracy, it gave power to registrar of the political parties to direct special audit of accounts and there were provisions of fine, imprisonment and withdrawal of registration on non-compliance.