Press Release: Between FY 2019-20 and FY 2023-24, there’s a dramatic increase in declared income of Registered Unrecognised Political Parties starting from FY 2021-22 (Rs 490.2151 cr), which then rose by 223% in FY 2022-23 (Rs 1581.7517 cr); 73.26% of unrecognised political parties did not have either report available in the public domain

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Press Release

July 18, 2025

Analysis of status of submission of annual reports of Registered Unrecognised Political Parties during FY 2022-23

For the detailed report on key findings, observations and recommendations by ADR, please access the report on the website: https://adrindia.org/content/Analysis-of-status-of-submission-registered-Unrecognised-Parties-FY-2022

Link to data available on MyNeta website: https://myneta.info/party/unrecognized_parties.php

Introduction

This report by Association for Democratic Reforms (ADR) analyses the status of submission of annual audit reports and contribution reports of registered unrecognised parties for FY 2022-23. The report looks at the status of submission of the annual reports of registered unrecognised parties and the income, expenditure and donations declared by these political parties during the FY 2022-23. Previously also ADR released several reports on the political finance disclosures by the RUPPs, which can be accessed here.

Political funding for RUPPs primarily comes from voluntary contributions by individuals and corporate entities, as permitted under Section 29B of the Representation of the People Act (RPA), 1951. Foreign funding is prohibited under the Foreign Contribution (Regulation) Act, 2010. These parties enjoy income tax exemptions under Section 13A of the Income Tax Act, 1961, provided they file their income tax returns and disclose details of donations exceeding ₹20,000 to the ECI annually. However, many RUPPs fail to comply with these requirements, leading to issues like tax evasion and money laundering. For instance, in 2019–20, 219 RUPPs claimed tax exemptions worth ₹608 crore, yet 66 of them did not submit mandatory contribution reports, underscoring widespread non-compliance with Election Commission of India (ECI) regulations. The lack of consistent financial reporting and minimal electoral activity by many RUPPs has led the ECI to initiate cleanup drives, delisting non-compliant parties and enforcing stricter regulations.

Between 2022 and 2024, over 3,260 RUPPs collectively received more than ₹10,000 crore in electoral donations, raising alarms about potential misuse as "slush money." Investigations suggest that much of this funding is funnelled to shell companies through complex bank account networks, indicating possible money laundering. In 2022, the ECI delisted 537 RUPPs for non-compliance, such as failing to submit audited accounts, contribution reports for donations above ₹20,000, or election expenditure statements. The ECI also introduced a web portal in 2023 to streamline digital filing of financial statements, with reminders to enforce compliance.

Many RUPPs are suspected of existing solely to exploit tax exemptions under Section 13A of the Income Tax Act, 1961, without engaging in electoral activities. The ECI’s data indicates that only 5% of RUPPs submitted donation reports between 2013 and 2016, highlighting persistent non-compliance. The ECI continues to monitor RUPPs, with plans for further delisting of non-compliant parties and stricter enforcement of financial reporting requirements.

The Election Commission of India issued guidelines on “Transparency and Accountability in party funds and election expenditure – submission of reports by unrecognised political parties” which were applicable to all political parties w.e.f 1st October, 2014. As per these guidelines, all unrecognised parties are required to submit their requisite reports in the office of the respective State CEOs. On receipt of the reports from the state level unrecognised political parties, scanned copies of annual audited accounts, contribution reports and statements of election expenditure shall be uploaded on the websites of CEOs of the respective states, within 3 days of receipt of the same for viewing by the public.

Status of submission of annual audit statements and contribution reports by registered unrecognised political parties all over India, FY 2022-23

This report analyses the status of submission of annual reports of a total of 739 (26.74% of the total RUPPs) registered unrecognised parties across 22 states in India, whose either audit or contribution reports were available on the respective state CEOs websites for the FY 2022-23.
The analysis shows that both annual audit and contribution reports of a significant 73.26% or 2025 of the total RUPPs are not available in the public domain for FY 2022-23.
The maximum number of RUPPs, whose statements were available are in Uttar Pradesh, followed by Delhi and Bihar, given that these states have the highest number of registered unrecognised political parties.
States with zero reporting: Punjab (73 RUPPs), Uttarakhand (40 RUPPs) and Goa (12) are among the top three states where both audit and contributions reports of none of the RUPPs are available on the official websites. This highlights stark non-compliance or non-disclosure in these regions.

Among the 739 RUPPs analysed in this report, both audit and contribution reports are available for 501 RUPPs across 20 states. This is a mere 18.13% of the total number of RUPPs.
The top compliant states are Gujarat (37.89%), Bihar (36.41%), Delhi (30%), Uttar Pradesh (23.25%) and Tamil Nadu (21.74%) where either statement is available for the aforementioned percentages of total RUPPs in the state.
Gujarat (30.53%), Delhi (21.67%) and Bihar (18.48%) demonstrate relatively higher levels of compliance compared to the national average in terms of the availability of both reports of RUPPs in the public domain.

Total Income, Expenditure and Donations declared by top 10 Registered Unrecognized Political Parties during FY 2022-23

Out of the top 10, 5 parties (50%) are from Gujarat, indicating a concentration of unrecognized parties with high declared incomes in this state.
Gujarat parties collectively reported Rs 1158.115 cr in total income—over 70% of the top 10 parties’ income. The highest income was declared by Bharatiya National Janta Dal, Rs 576.458 cr.
Donations above Rs 20,000 account for a large share of total donations—e.g. New India United Party shows 100% of donations as large donations (Rs 407.45 cr).
Many of the top earners were formed after 2015, reflecting a trend of newer parties rapidly mobilizing funds. These include Satyawadi Rakshak Party (2022), Jan Man Party (2021), Jan Sewak Kranti Party (2021) and New India United Party (2018).

Year-wise total income declared by top 10 Registered Unrecognized Political Parties from FY 2019-20 to FY 2023-24

Bharatiya National Janata Dal declared the highest total income of Rs 957.4454 cr (31.76% of total) between the FY 2019-20 to 2023-24. The party witnessed a major jump in FY 2021-22 and FY 2022-23.
Satyawadi Rakshak Party declared the second highest income of Rs 416.2337 cr, with sharp growth in FY 2022-23 (Rs 85.6779) and a massive Rs 330.5558 cr in FY 2023-24.
Gujarat-based parties alone account for 73.22% (Rs 1158.1154 cr) of the top 10 parties’ declared income of Rs. 1581.7517 cr.
Some parties report no or very less income in earlier years, but then suddenly report large sums in one or two fiscal years. Aam Janmat Party jumps from Rs 8000 in FY 2020-21 to Rs 220.3676 cr in FY 2022-23. Similarly, Saurashtra Janta Paksha reported Rs 131.3107 cr from zero in the previous two fiscal years.

Comparison of Total Income, Expenditure and Donations declared by top 10 Registered Unrecognised Political Parties with Recognised Political Parties during FY 2022-23

In terms of political finance disclosures, RUPPs are not far behind the recognised political parties. In most cases, the income and donations of only the top 10 RUPPs match that of the state parties. The total donations above Rs 20,000 declared by top 10 RUPPs exceeded that of the National and state parties for FY 2022-23.
The total income declared by the top 10 RUPPs was Rs 1581.7517 cr while the total donations declared was Rs 1581.66 cr for FY 2022-23. 99.99% of income came from donations.
Rs 1479.942 cr (93.56%) came from donations above Rs 20,000.
National parties reported only 33% (27.64) donations from large donors (donations above Rs 20,000), while the top 10 unrecognized parties reported a massive 93% from large donors. This stark difference might suggest different reporting practices or dependence on fewer large donors by unrecognized parties. Regional parties reported the least large-donor concentration (14%).

Observations of ADR

A significant 73.26% of unrecognised political parties did not have either report available online, pointing to a major transparency gap in financial reporting by registered unrecognised political parties.
Low compliance overall: Only 18.13% of parties submitted both mandatory reports.
Lack of uniformity: Reporting rates vary dramatically across states, indicating potential differences in enforcement, capacity, or willingness to comply. While reporting formats for audit and donations reports are available but several parties fail to adhere to it.
Unrecognized parties’ disclosures show that parties received large numbers of donations, heavy reliance on large donors and a near-total expenditure.
Between FY 2019-20 and FY 2023-24, there’s a dramatic increase in declared income of RUPPs starting from FY 2021-22 (Rs 490.2151 cr), which then rose by 223% in FY 2022-23 (Rs 1581.7517 cr). Income further remained high in FY 2023-24 (Rs 915.4172 cr). This suggests a surge in political fundraising activities in recent years, possibly due to heightened political competition or upcoming elections. These abrupt surges raise questions about the sources and documentation of funds.
A total of 38 of the 739 RUPPs analysed in this report declared a total income exceeding Rs 1 crore in the FY 2022-23.
On reviewing the Chief Electoral Officer (CEO) Uttarakhand’s website for FY 2022-23, it was observed that only a PDF containing consolidated status of unrecognized political parties has been uploaded. This document lists the names of 39 unrecognized parties, out of which audit reports are available for 6 parties and donation status details for 5 parties. However, the party-wise separate statements for these parties have not been uploaded on the CEO’s website. As a result, the financial data of these parties could not be incorporated into this report.
For FY 2022-23, it has been observed that the CEO websites of the following states and union territories — Punjab, Chandigarh, Tripura, Andaman & Nicobar Islands, Nagaland, Arunachal Pradesh, and Dadra & Nagar Haveli — do not have any details of the audit reports, donation reports, and election expenditure reports of unrecognized political parties available on their respective websites.
The reports and statements of registered unrecognised parties are not available on the CEO websites of Meghalaya & Puducherry (last the four years) and Goa (for the last five years) at the time of preparing this report.
Out of a total of 2,764 registered unrecognised parties, approx. 32 parties won seats in the current state assemblies and Lok Sabha. These are Kalyana Rajya Pragathi Paksha, Sarvodaya Karnataka Paksha, Voice of the People Party, Bharat Adivasi Party, Rashtriya Lok Dal, Kuki People's Alliance, Jansatta Dal (Loktantrik), Nirbal Indian Shoshit Hamara Aam Dal, Suheldev Bharatiya Samaj Party, Congress (Secular), Indian National League, Janadhipathiya Kerala Congress, Kerala Congress, Kerala Congress (b), Kerala Congress (Jacob), Loktantrik Janta Dal, National Secular Conference, Revolutionary Marxist Party Of India, Viduthalai Chiruthaigal Katchi, Marumalarchi Dravida Munnetra Kazhagam, Rashtriya Secular Majlis Party, Vikassheel Insaan Party, Hindustani Awam Morcha (Secular), Aazad Samaj Party (Kanshi Ram), Jammu and Kashmir People's Conference, Jharkhand Loktantrik Krantikari Morcha, Peasants and Workers Party of India, Rashtriya Yuva Swabhiman Party, Rashtriya Samaj Paksha, Rajarshi Shahu Vikas Aghadi, Jan Surajya Shakti and Republican Party Of India (Athawale).

Out of these 32 parties, audited and donation statements of only 13 parties are available for FY 2022-23 on their respective CEO websites. For 16 parties, both audited and donation statements are not available for FY 2022-23. One party’s audited report is not available in the public domain, and two parties were registered in 2023 and 2024.
Among the unrecognised parties that contested in their respective state assembly elections, candidates of eight unrecognised parties won seats in the elections such Apna Dal (Soneylal) (ADAL), Communist Party of India (Marxist–Leninist) Liberation, Zoram People's Movement (ZPM), Tipra Motha Party (TMP), United People's Party, Liberal (UPPL), Janasena Party (JnP), Gondwana Gantantra Party (GGP) and Revolutionary Goans Party (RGP). As a result, these parties were granted the status of regional parties by the Election Commission of India (ECI). Therefore, the financial details of these parties have not been included in this report. It is important to note that the Election Commission grants recognition as a regional party based on a party's performance in terms of vote share percentage and the number of seats won in a state’s legislative assembly or Lok Sabha elections. This recognition is determined according to the prescribed criteria laid down by the ECI.

Recommendations of ADR

In 1999, the ECI had issued notices to more than 200 political parties which were registered till 1995 but failed to contest in any elections. Notices to those parties which were returned undelivered or parties which failed to respond to these notices were deleted only from the list of registered parties, which added up to 150. Similarly, 255 parties were de-listed in 2016 from the list of registered unrecognised parties as they were no longer in existence or functioning. In 2022, the ECI delisted 537 RUPPs for non-compliance, such as failing to submit audited accounts, contribution reports for donations above ₹20,000, or election expenditure statements. This exercise should continue so as to weed out all political parties which do not contest in any election for more than 5 years and also as a means to strengthen the registration process.
The website of the state CEOs should be regularly updated to provide details of status of submission of audit reports and contribution reports by unrecognised parties. As mentioned in the transparency guidelines, the list of reports/statements filed by these parties shall be compiled and uploaded on the CEO’s website within 24 hours of the due date. This list shall be periodically updated by the CEO office, within 3 days of receipt of statement/report from any political party. None of the State CEO websites other than Chhattisgarh, Delhi, Madhya Pradesh, Bihar, Tamil Nadu, Telangana, Jharkhand, Karnataka, Assam, Kerala and Gujarat provide details of status of submission of audit reports. Other state CEO websites must follow the example of these states and display the list of parties and status of submission of their audit reports as mandated by the guidelines.
Regulation of registration of political parties is crucial to avoid money laundering, corrupt electoral practices and abuse of money power. Thus, the ECI should impose strict norms for the registration of an association of persons as a political party apart from taking the stringent step of de-listing those parties which fail to adhere to the rules.
IT scrutiny of unrecognised parties should be taken up, especially of those which do not contest in elections but declare voluntary contributions.
Strengthen oversight, especially for unrecognized parties with high donations from large donors.