A recent analytical report by the Association for Democratic Reforms (ADR) has revealed widespread irregularities and transparency failures among registered unrecognised political parties (RUPPs) in Bihar and those that participated in the 2020 Bihar Assembly Elections. The report, based on financial year 2023–24 disclosures, underscores how a large number of political entities remain outside the scope of public scrutiny despite being registered with the Election Commission of India (ECI). The study, which examined 275 such parties, exposes significant gaps in compliance with mandatory financial reporting norms and provides a deeper understanding of how many of these parties function without accountability.
The ADR initially reviewed 278 parties but narrowed the analysis to 275 after excluding the Communist Party of India (Marxist–Leninist) Liberation, now a recognised regional party, and two inactive RUPPs — Bharat Bhrashtachar Mitao Party (Delhi) and Samajwadi Janata Dal (Democratic) (Bihar). Out of the 275 parties considered, 184 are registered in Bihar, while 91 are based in other states but were active participants in the 2020 Bihar Assembly elections. The study relies on data drawn from the official websites of the Chief Electoral Officers (CEOs) of various states and the Election Commission, including audit statements, contribution reports, and other financial filings.
The overall findings highlight a striking picture of non-compliance. Only 98 parties had made their audit reports available for FY 2023–24, while 81 had submitted contribution or donation reports. Merely 67 parties had uploaded both reports, forming just about 24 percent of the total, while more than half — 163 parties — had not submitted any financial disclosures at all. This means that nearly six in ten unrecognised political parties linked with Bihar operate with no publicly available record of their income, expenditure, or donations, undermining the principles of transparency that are fundamental to electoral integrity.
Another key observation of the report pertains to the presence of dormant political entities. Twenty-eight parties registered in Bihar have not contested any election, yet together they declared an income of over Rs 152 lakh during the last five financial years. Among them, the Mithilawadi Party, registered in 2020, recorded the highest income of Rs 82 lakh. Others, such as the Shoshit Inquilab Party and Gantantrik Janhit Party, also reported steady streams of income despite negligible political activity. These trends raise serious questions about the real function of such entities and whether they are being used as channels for purposes other than genuine political participation.
For those RUPPs that did comply partially with the transparency requirements, the data tells an uneven story. Sixty-seven parties that filed both audit and donation reports declared a combined income of Rs 85.56 crore, total expenditure of Rs 71.49 crore, and donations worth Rs 71.73 crore during FY 2023–24. The Samata Party of Delhi topped this list, reporting an income exceeding Rs 53 crore, followed by the Socialist Unity Centre of India (Communist) at Rs 9.59 crore. However, despite this sizable financial activity, only eight candidates from these parties managed to win seats in the 2020 Bihar Assembly elections—four each from Hindustani Awam Morcha (Secular) and Vikassheel Insaan Party—highlighting the weak electoral performance of most RUPPs despite significant funds.
Another 31 parties had submitted only audit reports, disclosing an overall income of Rs 18.17 crore. The Rashtriya Jansambhavna Party of Bihar alone accounted for more than 90 percent of this figure with an income of Rs 16.47 crore. None of the 178 candidates fielded by these 31 parties won in the 2020 elections. In contrast, 14 parties had submitted only donation reports, revealing donations above Rs 20,000 amounting to Rs 682.28 crore. Most of this enormous sum—over 99 percent—was declared by just two Bihar-based parties: Aam Janmat Party and Prabal Bharat Party. The absence of corresponding audit data for such large donations raises serious concerns about possible irregularities in political funding and the credibility of these financial disclosures.
The majority of RUPPs, however, remain completely non-transparent. A total of 163 parties had neither audit nor contribution reports available in the public domain. Out of these, 113 contested the 2020 Bihar Assembly elections, collectively fielding 712 candidates, none of whom were successful. The complete lack of financial records for such a large number of active political entities represents one of the most severe accountability gaps in India’s state-level political landscape.
The ADR report also identifies discrepancies in the financial statements of several parties. For instance, the Rashtriya Lok Morcha reported donations of only Rs 50,120 but simultaneously claimed Rs 11.02 lakh as donations above Rs 20,000, while the Jan Sangh Party declared total donations of Rs 180 lakh but reported Rs 184 lakh in donations above Rs 20,000. Such mismatches, according to ADR, point to serious flaws in reporting practices and a lack of financial integrity within these organisations. The Jan Suraaj Party, despite declaring Rs 2.42 crore in income, was excluded from the study as it was registered only in August 2023 and has yet to contest elections.
The Election Commission of India has recently intensified its scrutiny of unrecognised political parties. In August and September 2025, it delisted a total of 808 RUPPs for non-compliance and inactivity, and a third phase of the cleanup drive is currently underway to remove an additional 359 parties that failed to submit audited accounts for three consecutive years. ADR has welcomed these steps but urged the Commission to institutionalise such monitoring permanently. The organisation also recommended that state CEO websites be updated regularly to display the submission status of audit and donation reports and that stronger norms be introduced for the registration of new political parties.
According to ADR, continuous monitoring and delisting of inactive or non-compliant parties are essential to prevent the misuse of political registration for financial or other non-political activities. It has also recommended that income tax authorities undertake targeted scrutiny of unrecognised political parties that report large donations but do not participate in elections. The ADR further called for better coordination between the ECI and financial regulatory agencies to identify possible cases of money laundering or tax evasion through inactive political fronts.
The findings of the ADR report present a sobering picture of Bihar’s political ecosystem, dominated by hundreds of small, unregulated entities that often escape public scrutiny. The concentration of funds in a few parties, the absence of audits for many, and the overall lack of accountability undermine democratic transparency and fair electoral competition. As Bihar approaches another election cycle in 2025, the ECI’s challenge will be not only to regulate political spending but also to ensure that only genuine, active, and transparent parties are allowed to participate in the democratic process. Strengthening the financial accountability of political entities is therefore not just a technical necessity but a critical step towards restoring public faith in India’s electoral system.