A recent report by the Association for Democratic Reforms (ADR) has revealed that 17 regional political parties failed to submit their donations report to the Election Commission of India (ECI) for the financial year 2022-23. This non-compliance raises concerns about transparency in political funding and adherence to election guidelines. The report highlights a significant lapse, considering the importance of financial accountability in democratic processes.
ADR Report Exposes Lapses in Donations Reporting
According to ADR, political parties receiving donations above ₹20,000 are required to submit an annual report detailing their contributions. This report must be submitted to the ECI before the deadline to ensure transparency in political funding. However, 17 regional parties did not comply with this mandate, raising questions about their financial practices.
Major Political Parties Named in the Report
The ADR report has identified several well-known regional parties among the defaulters. Some of these include:
- Jharkhand Mukti Morcha (JMM)
- Shiv Sena (Uddhav Balasaheb Thackeray faction)
- Jammu and Kashmir National Conference (JKNC)
- Rashtriya Janata Dal (RJD)
- Samajwadi Party (SP)
These parties, among others, failed to submit their reports within the stipulated timeframe, which could lead to potential legal consequences or scrutiny by election authorities.
Why Is the Donations Report Important?
The Election Commission mandates political parties to disclose their sources of funding to maintain transparency and prevent black money from influencing elections. Donations above ₹20,000 must be reported with details such as the donor’s name, mode of payment, and amount contributed. When parties fail to submit these reports, it raises concerns about unaccounted money and the possibility of illicit funding in politics.
Non-Compliance Trends in Political Funding
This is not the first time that regional parties have failed to submit their donations report. In previous years, several political parties delayed or defaulted on their submissions. Experts believe that such lapses indicate a lack of accountability and reluctance to disclose funding sources.
Possible Reasons for Non-Compliance
There could be multiple reasons behind the failure of these parties to submit their donation reports:
- Lack of proper financial management – Some parties may not have a structured financial reporting system.
- Fear of scrutiny – Political funding often involves large sums, and parties might avoid disclosure to evade investigation.
- Deliberate evasion – Some parties might intentionally delay or avoid submitting reports to keep their funding sources undisclosed.
ECI’s Action Against Defaulting Parties
The Election Commission has the authority to take action against political parties that fail to comply with financial reporting guidelines. In some cases, penalties or loss of tax exemptions could be imposed. However, strict enforcement is necessary to ensure that all political parties adhere to transparency norms.
Possible Consequences for Defaulting Parties
- Legal action or penalties for violating the Representation of the People Act.
- Loss of tax exemptions under the Income Tax Act, which allows political parties to receive donations tax-free.
- Public scrutiny and loss of credibility, affecting their electoral prospects.
Calls for Stricter Regulations on Political Funding
Several election watchdogs and experts have called for stricter laws regarding political donations and transparency. Many believe that digital tracking of political contributions, mandatory real-time disclosures, and stronger penalties for non-compliance could help improve financial transparency in Indian politics.
Some recommendations for better compliance include:
- Mandatory online reporting of donations above ₹10,000.
- Regular audits of political party accounts.
- Stronger penalties for non-compliance.
The failure of 17 regional parties to submit their donations report to the ECI raises serious concerns about transparency in political funding. Without proper disclosure, voters remain unaware of the financial influences behind political decisions. It is essential for authorities to enforce stricter regulations and ensure that all political parties comply with financial disclosure norms. As India moves towards digital governance, implementing real-time tracking of political donations could be a step forward in maintaining the integrity of electoral processes.
