How Political Parties Are Regulated by Law in India – A Simple, Honest Guide for Citizens

Introduction: Why Regulate Political Parties?

Political parties are the heart of democracy—they give us choices, ideologies, and leadership. But with great power comes great responsibility. What happens when a political party crosses ethical or legal boundaries? Or worse—when it misuses public trust?

That’s where laws regulating political parties come in.

Think of it like traffic rules: you can drive where you want, but there must be speed limits, road signs, and penalties for breaking the law. Similarly, political parties are free to operate—but under the watchful eye of the Constitution, the Election Commission of India, and other legal frameworks.

In this blog, let’s decode:

• How political parties are formed
• What rules they must follow
• How they are regulated
• Real-life violations and what happened
• FAQs to clear up confusion

What Is a Political Party?

At its core, a political party is a group of people who come together to contest elections, promote policies, and form governments.

But here’s the catch: to operate legally in India, a political party must be registered with the Election Commission of India (ECI) under the Representation of the People Act, 1951.

Once registered, the party can:

• Contest elections
• Use a party symbol
• Get access to electoral rolls
• Receive regulated donations

Step 1: Registration of Political Parties

Legal Basis:

Under Section 29A of the Representation of the People Act, 1951, any association or group intending to become a political party must apply to the Election Commission of India (ECI).

Requirements:

To register, parties must:

• Submit their constitution and rules
• Declare that they will abide by the Constitution of India
• Ensure democratic internal structure
• Avoid promoting hatred or violence

Once approved, the party becomes a registered political party.

Step 2: Recognition as National or State Party

Not all registered parties are equal.

Categories:

• National Party
• State Party
• Registered (Unrecognized) Party

To qualify as a national or state party, certain performance-based criteria must be met (like a percentage of votes or seats in elections).

Benefits of recognition include:

• Reserved party symbol
• Free airtime on Doordarshan
• Access to electoral rolls
• Eligibility for public funding (in future, if allowed)

Who Regulates Political Parties in India?

Here are the main legal authorities:

1. Election Commission of India (ECI)
2. Income Tax Department (for financial transparency)
3. Supreme Court & High Courts (for judicial scrutiny)
4. Parliamentary Laws like:
   1. Representation of the People Act, 1951
   1. Income Tax Act
   1. Indian Penal Code
   1. Anti-Defection Law (Tenth Schedule)

Key Legal Obligations for Political Parties

1. Democratic Functioning

All parties must operate democratically, hold regular internal elections, and promote transparency.

Issue: Many parties operate like family businesses—this is where reform is still needed.

2. Financial Transparency

Political parties must:

• Submit annual income and expenditure reports
• Declare donations above ₹20,000
• Be audited annually

But loopholes in the system (like anonymous electoral bonds) have raised concerns.

3. Filing Affidavits and Candidate Details

Before elections, parties must:

• Submit details of their candidates’ criminal records, education, and assets
• Inform voters through media campaigns

Failure to do so can lead to:

• Cancellation of candidacy
• Fines
• Warnings by ECI

4. Compliance with Model Code of Conduct (MCC)

During elections, political parties must follow the Model Code of Conduct, which prohibits:

• Hate speech
• Use of government resources for campaigns
• Vote-buying
• Personal attacks

The ECI can issue notices, bans, or disqualify candidates if MCC is violated.

Real-Life Case Studies

📚 Case 1: National Party Status Lost – Trinamool Congress (2023)

In 2023, the Election Commission withdrew the national party status of AAP, TMC, and NCP after they failed to meet performance criteria. This meant loss of benefits like a reserved symbol across states.

👉 This shows that regulations are actively enforced.

🕵️ Case 2: Shiv Sena vs Shiv Sena (2022-23)

A split in the Shiv Sena led to both factions claiming the party name and symbol. The ECI investigated, applied internal democracy checks, and ultimately assigned the original name to the Eknath Shinde faction.

👉 Shows how ECI resolves internal party disputes using the Election Symbols Order, 1968.

💰 Case 3: Undisclosed Donations – Multiple Parties

In several cases, parties were pulled up by the Income Tax Department for:

• Not declaring donations
• Misusing funds
• Hiding donor identities

👉 These cases are under investigation and highlight the need for financial transparency.

Consequences of Violating Rules

Here’s what can happen if a political party breaks the law:

🛑 Derecognition

The ECI can withdraw state or national status, which affects party funding and symbol usage.

🚫 Ban from Contesting

Candidates or parties can be banned for corrupt practices like bribery, hate speech, or booth capturing.

💸 Penalties

Non-compliance with audit norms can result in fines, loss of tax exemptions, or public censure.

🏛️ Legal Action

Courts can disqualify candidates or parties under:

• The Representation of the People Act
• Anti-defection law
• Criminal laws

Anti-Defection Law – Discipline Within Parties

What happens when elected representatives switch parties after elections?

That’s where the Anti-Defection Law (Tenth Schedule of the Constitution) steps in.

It prevents:

• Horse-trading
• Mass defections
• Destabilizing governments

Violation can lead to disqualification of the MP or MLA.

How Political Funding Is Regulated

Political funding is one of the most sensitive issues in party regulation.

Parties must:

• Disclose all donations above ₹20,000
• File returns with the Election Commission
• Be audited annually

However, anonymous donations and electoral bonds have made this less transparent. Civil society continues to demand cleaner funding mechanisms.

FAQs: Let’s Clear Common Doubts

Q1: Can the Election Commission ban a political party?
Technically, no. The ECI can deregister or derecognize, but banning a party is a power that lies with the Union Government under the Unlawful Activities Prevention Act (UAPA).

Q2: Can citizens file complaints against political parties?
Yes. You can:

• File complaints with the ECI
• Use the cVIGIL app during elections
• Move court for serious violations

Q3: Are all political party donations public?
No. Donations under ₹20,000 don’t have to be disclosed. Electoral bonds also hide donor names—this has led to criticism and legal challenges.

Q4: How often do parties need to hold internal elections?
There is no fixed rule, but they must regularly elect office bearers as per their party constitution. Many delay or skip this, raising transparency issues.

Q5: Can political parties be sued?
Yes. Political parties can be sued for:

• Defamation
• Corruption
• Breach of election rules
• Financial misconduct

The Road Ahead: What Needs Improvement?

Despite all regulations, challenges remain:

• Lack of complete transparency in funding
• Delay in disqualifying criminal candidates
• Parties not following internal democracy
• No law to limit dynasty politics

Proposed reforms include:

• Making internal elections mandatory
• Capping party spending
• Bringing political parties under Right to Information (RTI)
• Making NOTA stronger (None of the Above)

Conclusion: In Democracy, Law Keeps Power in Check

Political parties are powerful—but they must play by the rules.

As citizens, we must:

• Know our rights
• Monitor the conduct of parties
• Vote wisely
• Report violations
• Demand reforms

The Election Commission, courts, and tax authorities can regulate—but an informed voter is the ultimate watchdog.