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ECI Delists 334 RUPPs; ₹11,813 Cr Tax Exemption Lost on Political Donations – Need for CAG Audit

PolityEconomyCORE
Target:UPSC GS-IIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
24 Sept 2026
~2 min
Source: The Hindu
Key Data:₹11,813 crore223%₹7,416 crore₹18,742 crore334 RUPPs2,854 RUPPs
Bodies:Election Commission of IndiaSupreme Court of IndiaCentral Information CommissionIncome-Tax DepartmentEnforcement DirectorateComptroller and Auditor General of India
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What This Article Covers

1.BBC and ADR reports expose extraordinary donations to RUPPs, with a 223% rise in declared income in FY2022-23.

2.Over the last decade, tax exemptions on political donations cost the exchequer ₹11,813 crore; only 41.76% of total donations were claimed as tax-exempt.

3.ECI delisted 334 RUPPs but cannot deregister them; they remain eligible to receive contributions under Section 29B of RPA and tax exemption under Section 13A of Income-tax Act.

The Big Picture
Prelims · HighMains · High

Political parties in India enjoy unprecedented tax exemptions and opacity in donations. A recent BBC investigation and ADR report reveal that Registered Unrecognised Political Parties (RUPPs) received huge donations without contesting elections. The exchequer lost ₹11,813 crore in taxes over a decade. The Election Commission lacks power to deregister shell parties, and the author calls for mandatory CAG audit, expenditure limits, and a digital portal for financial transparency.

Exam Lens

Quick Exam Facts From News

RUPPs total2,854 (as of 2025); 334 delisted by ECI
Income rise (RUPPs)223% in FY2022-23
Tax exemption loss (10 yrs)₹11,813 crore
Donations to parties (2023-24)₹7,203 crore (27 parties)
Donations to parties (2015-16)₹714 crore (43 parties)
Total donations not claimed58% of ₹28,287 crore over 9 years
Election funds (2024 general)22 parties had ₹18,742.31 crore
Post-election surplus₹14,848.46 crore

1-Minute Revision

  • ›RUPPs total: 2,854 (as of 2025); 334 delisted by ECI
  • ›Income rise (RUPPs): 223% in FY2022-23
  • ›Target this Data: ₹11,813 crore tax loss over a decade; 223% rise in RUPP income FY2022-23; 334 RUPPs delisted out of 2,854.
  • ›Target this Nodal Body: Election Commission of India (ECI) – registers parties under Section 29A RPA, but cannot deregister.
  • ›Target this Legal Point: Section 29A RPA (registration), Section 13A IT Act (tax exemption), Section 29B RPA (receiving contributions).

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which constitutional body is responsible for registration of political parties under Section 29A of the Representation of the People Act, 1951?

Q2Statement-basedHard

Consider the following statements regarding Registered Unrecognised Political Parties (RUPPs):

1. RUPPs are eligible to receive electoral bonds.

2. The Election Commission delisted 334 RUPPs in 2025 as part of a clean-up strategy.

3. RUPPs must contest elections within five years of registration to avoid automatic delisting.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what was the total tax exemption loss to the exchequer over the last decade due to political donations?

Q4Application/ImpactMedium

Why does the author recommend that the Election Commission order the Comptroller and Auditor General (CAG) to audit political party accounts?

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