Unrecognised parties got Rs. 10,000 cr in donations
Extract
from the article:
The recent revelation that registered unrecognised political
parties have amassed over ₹10,000 crore in political donations between 2022 and
2024 is a striking indicator of evolving political financing dynamics in India.
Interestingly, these smaller and less visible parties have surpassed the
traditionally dominant BJP and Congress in attracting donations. The Income Tax
department’s investigations uncovered hundreds of such parties’ bank accounts,
highlighting a broadening donor base that has reportedly expanded to
approximately 8,000 individuals. This influx of contributions signals a
diversification of political capital and possibly an underlying shift in donor
confidence or strategy away from the major established parties.
Furthermore, the article underscores significant concerns
about transparency and regulatory oversight within political funding. The
burgeoning financial clout of these unrecognised parties raises critical
questions about accountability, the efficacy of existing electoral financing
frameworks, and the potential for misuse of funds. It also posits challenges
for regulators like the Income Tax department and the Election Commission, who
grapple with enforcing compliance amid complex financial networks. In essence,
the political donation landscape is experiencing a metamorphosis, with nuanced
implications for democratic processes and party politics in India.
My
Take:
A. In
17 years, 8 parties got Rs 15,000 crore from unknown donors
" There is only ONE WAY to bring about TOTAL
TRANSPARENCY as far as DONATIONS to political parties, is concerned. Here is
detailed PROCEDURE : Transparency in Political Funding ? [ 08 July 2017 ]
"
Looking back at what I wrote several years ago, the surge of
donations to unrecognised parties today was already foreshadowed by the
troubling trend of massive funds flowing to a handful of parties from anonymous
donors. I had envisaged that without systemic transparency reforms, such flows
would multiply, cluttering the political ecosystem with opaque financial
transactions. The partial solutions offered in the past—like limited reporting
or voluntary disclosures—proved insufficient because the core issue of
verifiable transparency remained unaddressed. The current scenario vividly
reflects that my calls for a comprehensive procedural overhaul are more
pertinent than ever. Only with robust mechanisms ensuring full visibility of
funding sources can we hope to stem the tide of unaccountable political
financing.
Looking back, the prescriptive measures I proposed were
designed not merely to reveal donor identities but to institutionalize
integrity in political funding workflows, thereby enabling regulatory bodies to
meaningfully audit and act against malpractice. The burgeoning donations to
lesser-known parties symbolize the manifestation of systemic loopholes I had
warned against. This reinforces my conviction that incremental tweaks won’t
suffice – a paradigm shift, grounded in codified transparency and traceability,
is indispensable to safeguard democratic legitimacy.
" The root-cause of this evil is our existing system of
funding of political parties. Introduction of ELECTORAL BONDS, a few years ago,
has failed to eliminate the use of unaccounted money and shady financial
practices. "
This quotation sharply resonates with today’s revelations
about registered unrecognised parties eclipsing established giants in donation
collections. The Electoral Bond scheme, introduced to bring transparency by
holding donor anonymity through banks, ironically has opened fresh avenues for
subtle financial obfuscation. The spike in donations to unrecognised outfits,
which are less tightly regulated and scrutinized, exemplifies how the system’s
vulnerabilities continue to be exploited. The Election Commission’s limited
reach and enforcement capabilities mean that without broader structural
overhaul, the proliferation of such financial anomalies is almost inevitable.
In reflecting on this, I see clear validation for my
assertion that the regulatory architecture is ill-equipped to confront
entrenched fiscal opacity. The line between legitimate political financing and
covert money-laundering gets increasingly blurred, partly because of policy
constructs that inadvertently shield dubious transactions. It calls for
reimagining not just the tools but also the fundamental principles governing
political donations—emphasizing non-negotiable transparency and real-time
accountability.
C. How
will political parties survive without transparency?
" Mandate that ALL donations, even for ONE rupee, to
political parties can only be made ONLINE with immediate real-time reporting to
a central authority, leaving no room for cash transactions or anonymous
funding. "
What I anticipated in this 2016 discourse is now more
relevant than ever. The explosion of funding into unrecognised parties
testifies to what happens when donations are not stringently monitored or
digitized. The absence of mandatory online channels and instant disclosures
creates fertile ground for ‘shadow’ funding networks, which not only evade
legal oversight but deepen mistrust in political financing. The persistence of
cash-based or opaque transactions flagrantly undermines democratic ideals by sheltering
funding sources that could wield undue influence or engage in quid pro quo
politics.
Revisiting this stance, I remain steadfast that an
all-encompassing digitization mandate—with no exceptions—could significantly
curtail illicit funding flows. Real-time data transparency would empower
watchdogs and enforcement agencies to detect irregularities promptly, thus
fostering an environment where political parties must earn public trust through
open books. Any continued tolerance for non-digital, non-transparent funding
tactics directly invites systemic corruption and electoral distortion.
Call to
Action:
To the Election Commission of India and the Central
Government: It is imperative to urgently revisit and revamp the political
funding architecture. I call upon these authorities to institute mandatory
end-to-end digital trails for all political donations, with zero tolerance for
anonymity, regardless of party recognition status. Establishing a transparent,
centralized, and publicly accessible platform for donation disclosures will
empower citizens and regulators alike. Further, strict enforcement measures must
accompany these technological reforms to preempt financial malfeasance and
restore public confidence in democratic processes. The time for incremental
reforms is over; bold, decisive action is needed now to safeguard the integrity
of India’s political fabric.
With regards,
Hemen Parekh
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