ADR Report: 1,330 Parties Lack Financial Reports for 2024-25

As many as 1,330 registered unrecognised political parties (RUPPs), accounting for 65% of the total, did not have both their annual audit reports 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 findings highlight significant gaps in the public availability of financial information submitted by political parties. The absence of these disclosures makes it difficult for citizens and other stakeholders to examine the income, expenditure and donations received by a large number of registered unrecognised parties.

According to ADR’s overall figures, only 734 parties, or approximately 35% of the total, had financial disclosure information available. Among the parties covered by the analysis, 461, representing 22.23%, had both audit and contribution reports available. Another 159 parties had submitted only their audit reports, while 114 had submitted only contribution reports.

ADR, a non-governmental organisation working on electoral and political reforms, examined the availability of financial disclosures, income, expenditure, donations and electoral performance of registered unrecognised political parties.

The report analysed 734 parties across 34 states and Union territories for which audit or contribution reports were available on the websites of the respective chief electoral officers.

ADR Report: What Do the Financial Disclosure Numbers Show?

The report identified substantial differences in the availability of financial statements across states and Union territories. Uttar Pradesh had the highest number of registered unrecognised political parties with available financial statements, followed by Delhi and Bihar.

Delhi recorded the highest proportion of parties with both financial reports available, at 26.55%. The figures indicate that even among parties whose financial information could be accessed for the analysis, the availability of complete disclosures remained limited.

The 734 parties examined by ADR reported a combined income of ₹1,118.49 crore during FY 2024-25. Their total reported expenditure stood at ₹1,024.60 crore, while declared donations amounted to ₹1,104.36 crore.

Gujarat accounted for the highest reported income among the states, with ₹510.42 crore. Delhi followed with ₹218.48 crore, while Rajasthan reported ₹173.37 crore.

Together, these three states accounted for around 81% of the total income reported by the parties included in the analysis. The concentration of declared income in these states was one of the key financial findings highlighted in the ADR report.

98.4% of High-Value Donations Went to Parties That Won No Seats or Did Not Contest

One of the report’s significant findings concerned the electoral performance of parties receiving large donations. ADR found that 98.4% of declared high-value donations went to political parties that either failed to win any seats or did not contest elections.

The analysis identified 49 parties that reported incomes exceeding ₹1 crore. Of these, 43 failed to win a single seat despite declaring donations above the ₹1 crore income threshold.

The report also raised questions about the availability of financial disclosures among some of these parties. Eleven of the 49 parties did not have their audit reports available in the public domain for FY 2024-25.

Despite the absence of publicly available audit reports, these 11 parties together collected ₹371.95 crore in contributions exceeding ₹20,000, according to the analysis.

The findings highlight a gap between the scale of donations reported by some political parties and the availability of their financial records for public scrutiny. They also raise questions about the transparency of large contributions received by parties with limited electoral success.

ADR Flags Discrepancies in Financial Disclosures of 14 Parties

Beyond the missing reports, ADR identified discrepancies in the financial disclosures submitted by 14 registered unrecognised political parties. The organisation highlighted cases in which the figures reported in different sections of financial statements did not appear to match.

Three parties were specifically identified: Vishal Janta Party, Justice Party and Majlis Bachao Tahreek. According to ADR, all three reported zero total donations while separately declaring donations exceeding ₹20,000.

Such inconsistencies raise concerns about the accuracy and completeness of financial information submitted by political parties. ADR flagged the discrepancies as part of its broader assessment of disclosure practices among RUPPs.

15 Highest-Income RUPPs Reported More Than ₹1,064 Crore in Large Donations

The report also examined the financial disclosures of the 15 registered unrecognised political parties with the highest reported incomes. Their combined donations exceeding ₹20,000 amounted to ₹1,064.71 crore.

Despite reporting these substantial contributions, the 15 parties won zero seats in all the elections they contested, according to ADR’s findings.

New India United Party declared the highest donations above ₹20,000, amounting to ₹270.99 crore. Swatantrata Abhivyakti Party and Bhartiya Garib Vikas Kalyan Party followed among the parties reporting the highest contributions in this category.

ADR said its analysis showed that unrecognised political parties received a large number of donations and relied heavily on large donors for nearly their entire expenditure.

The findings draw attention to the relationship between large financial contributions, electoral participation and public disclosure. They also underline the importance of making financial filings accessible so that donations and spending can be examined.

Election Commission Had Delisted 808 RUPPs in 2025

The ADR findings come after the Election Commission of India delisted 808 registered unrecognised political parties in August and September 2025. The action was primarily taken against parties that had failed to contest elections for six consecutive years.

In September 2025, the commission also announced proceedings against another 359 political parties over their failure to submit audited accounts and election expenditure reports within the stipulated periods.

These actions brought renewed attention to the compliance requirements applicable to registered unrecognised political parties, particularly their obligations concerning election participation and financial reporting.

The ADR report adds another dimension to the discussion by highlighting how many parties lacked publicly accessible financial disclosures for FY 2024-25 and identifying cases involving discrepancies in reported donations.

ADR Recommendations to Improve Political Party Financial Transparency

Following its analysis, ADR recommended several measures aimed at improving transparency, strengthening registration procedures and ensuring greater compliance with financial reporting requirements.

The organisation called on the Election Commission to continue removing political parties that do not contest elections for more than five years. It also recommended strengthening the process through which political parties are registered.

ADR further urged state chief electoral officers to regularly update their official websites with information about the status of audit and contribution reports. This would help make financial disclosures easier for the public to access and monitor.

The organisation also called for greater scrutiny of parties receiving large donations, particularly those that do not contest elections. According to the report’s findings, substantial contributions were declared by parties that either failed to win seats or did not participate in elections.

Another recommendation was the creation of a centralised digital database containing political parties’ financial filings and compliance histories. Such a system could make it easier to track whether parties have submitted the required documents and identify gaps in their reporting records.

ADR also recommended that political parties that fail to contest elections or submit contribution reports by the statutory deadline should forfeit their tax-exempt status.

Why the ADR Findings Matter

The report highlights the scale of the financial disclosure gap among registered unrecognised political parties in India. With 1,330 parties lacking both annual audit and contribution reports in the public domain for FY 2024-25, the findings raise questions about the accessibility of financial information across the political system.

The analysis also points to the substantial donations reported by some parties, including organisations that did not win seats despite receiving large contributions. In addition, the discrepancies identified in the financial disclosures of 14 parties underline the importance of accurate and consistent reporting.

ADR’s recommendations focus on stronger registration procedures, regular publication of financial records, closer scrutiny of large donations and a centralised system for tracking compliance.

As the Election Commission continues its action against parties that fail to meet reporting and election participation requirements, the availability of complete and accessible financial disclosures remains a key issue in improving transparency and accountability among registered unrecognised political parties.