1,330 unrecognised political parties lack financial reports for FY 2024-25, reveals ADR

As many as 1,330 registered unrecognised political parties (RUPPs), accounting for around 65 per cent of the total, did not have both their annual audit and contribution reports available in the public domain for the financial year 2024-25, according to a report by the Association for Democratic Reforms (ADR).

The report examined the financial disclosures, income, expenditure, donations and electoral performance of unrecognised political parties across the country. Of the 734 parties for which at least one financial disclosure was available, only 461, or 22.23 per cent, had submitted both reports. While 159 parties had filed only audit reports, another 114 had submitted only contribution reports.

ADR analysed data from 734 parties across 34 states and Union territories using information available on the websites of respective chief electoral officers.

Gujarat accounts for highest reported income

The 734 parties collectively declared an income of Rs 1,118.49 crore, expenditure of Rs 1,024.60 crore and donations worth Rs 1,104.36 crore.

Gujarat topped the list with a reported income of Rs 510.42 crore, followed by Delhi at Rs 218.48 crore and Rajasthan at Rs 173.37 crore. Together, these three states accounted for around 81 per cent of the total declared income.

Uttar Pradesh had the highest number of RUPPs with available financial statements, followed by Delhi and Bihar. However, Delhi recorded the highest proportion of parties with both financial reports available, at 26.55 per cent.

High-value donations raise questions

The ADR report found that 98.4 per cent of declared high-value donations went to parties that either failed to win any seats or did not contest elections.

Of the 49 parties reporting incomes above Rs 1 crore, 43 failed to win a single seat. Eleven of these parties did not have their audit reports publicly available, despite collectively receiving Rs 371.95 crore in contributions exceeding Rs 20,000.

The report also flagged discrepancies in the financial disclosures of 14 parties. Three of them, Vishal Janta Party, Justice Party and Majlis Bachao Tahreek, declared zero total donations while separately reporting contributions above Rs 20,000.

Among the 15 RUPPs with the highest reported incomes, donations above Rs 20,000 totalled Rs 1,064.71 crore. Despite these contributions, the parties failed to win any seats in the elections they contested.

ADR seeks stricter financial scrutiny

The findings come after the Election Commission delisted 808 RUPPs in August and September 2025, primarily for not contesting elections for six consecutive years. In September, it also initiated proceedings against 359 other parties over failures to submit audited accounts and election expenditure reports within the prescribed timelines.

ADR has recommended stricter registration norms, regular updates of financial disclosures by state chief electoral officers and greater scrutiny of parties receiving substantial donations.

It has also called for a centralised digital database tracking parties' financial filings and compliance records. Further, the organisation recommended withdrawing tax-exempt status from parties that fail to contest elections or submit contribution reports within statutory deadlines.