The recent updated list of registered political parties notified by the Election Commission of India (ECI) has drawn attention to several issues. Amongst these is the concern about inactive parties exploiting income tax exemption laws and the ECI’s inability to deregister non-participating parties. Along with this, the ECI is pushing for considerable electoral reforms, bringing to light a myriad of challenges the commission is grappling with.
Registered but Inactive: The Issue of Non-Participating Parties
There are over 2000 registered yet unrecognized parties in India. The ECI wants to address the problem of these inactive entities possibly misusing the income tax exemption laws. However, the ECI does not currently have the authority to deregister parties, even if they don’t contest elections or breach their commitments at the time of registration. This power lies within the purview of the Representation of the People Act, 1951. Under this act, party deregistration can only occur if registration was procured through fraud, if the party is deemed illegal by the central government, or if the party amends its constitution, indicating it cannot adhere to the Indian Constitution.
Possibility of Money Laundering
Several suspicions have arisen that these unrecognized parties may be involved in money laundering, given their access to income tax exemptions. The Association of Democratic Reforms, an NGO tracking electoral matters, highlighted that the number of these parties has doubled during the past decade. These parties have a 100% exemption on their incomes from property, other sources, capital gains, and voluntary contributions under Section 13A of the Income Tax Act, 1961. This exemption, however, comes with certain conditions.
Undefined Scope of Powers & Other Challenges
There is considerable ambiguity about the ECI’s powers regarding enforcement of the Model Code of Conduct (MCC) and other election-related decisions. The MCC, despite being framed based on political party consensus, lacks legal backing. It is only enforced by the ECI’s moral and constitutional authority.
Another concern arises from the ECI’s abrupt transfer of senior state government officials, a move that can bypass rules under Article 309 of the constitution. Furthermore, there are instances when the MCC conflicts with the law. For example, although the MCC stipulates that ministers cannot announce financial grants, Section 123 (2)(b) of the RPA, 1951 states that public policy declaration or legal right exercise will not be considered as electoral interference.
Lack of Enforcement Power
The ECI lacks enforcement power to disqualify candidates committing electoral malpractices. It can only direct for a case to be registered; this was acknowledged by the ECI during the 2019 general elections, where it admitted to the Supreme Court its limited powers to deal with inflammatory speeches in the campaign.
Way Forward
The ECI plays a pivotal role in maintaining the confidence of Indian citizens in legislative bodies’ purity. Still, it is crucial to address the legal ambiguities and empower the commission to safeguard free and fair elections effectively. The call for substantial changes rather than mere rhetoric over the ECI’s independence is growing louder. Moreover, the ECI needs to reinvent its approach to uphold the democracy’s foundation, especially in light of these emerging challenges.
