Key facts
- India has over 2,800 Registered Unrecognised Political Parties (RUPPs) that can receive donations and claim tax exemptions.
- Six RUPPs examined by the BBC received about 17 billion rupees in donations in 2023-24, fielding only 15 candidates in the 2024 election.
- The Satyawadi Rakshak Party reported over $35 million in donations in the financial year ending March 2024.
- Aam Janmat Party reported over 6.2 billion rupees in donations in 2023-24.
- Tax officials are investigating suspected misuse of RUPPs, identifying 55.91 billion rupees in suspected bogus political donations.
- Some RUPPs' registered offices were found to be closed or inactive, and officials could not explain large expenditures.
India's vast network of over 2,800 Registered Unrecognised Political Parties (RUPPs) is facing increased scrutiny from tax authorities over suspected misuse of donations. These parties, while legally registered, have not achieved sufficient electoral success to be recognised at state or national levels. Despite fielding minimal candidates, some RUPPs report receiving substantial sums, raising questions about their electoral activity and financial transparency.
A BBC investigation into six such parties revealed they collectively received approximately 17 billion rupees in the 2023-24 financial year, yet only fielded 15 candidates in the 2024 general election, none of whom came close to winning.
The Satyawadi Rakshak Party, for instance, reported receiving over 3.3 billion rupees (approximately $35 million) in donations. Its president, Swati Ben Patel, stated the money was spent on charity without maintaining records. Similarly, the Aam Janmat Party saw a dramatic surge in donations, reporting over 6.2 billion rupees in 2023-24, significantly more than the main opposition party, the Indian National Congress. However, party officials could not explain this sudden increase, and its registered office was found to be shut.
The Garib Kalyan Party reported 1.38 billion rupees in donations but fielded only three candidates. Its president's mother recalled Income Tax department officials searching the family home.
Tax officials are investigating potential financial wrongdoing, including suspected bogus donations and foreign transactions, amounting to billions of rupees. They note that a web of taxpayers, parties, and intermediaries can obscure the origin and destination of funds. Some donors have confirmed claiming tax benefits on their contributions to these parties. In some cases, chartered accountants and middlemen reportedly exert significant control over party finances, as stated by the former president of the Swatantrata Abhivyakti Party, which also reported substantial donations.