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The number of unrecognized registered political parties (RUPP) in India grew exponentially from *** in January 2001 to 2999 in May 2022. This was a growth of *** percent.
RUPPs are either newly registered or those parties who have not secured enough vote share in assembly or Lok Sabha elections to become a state party or those who have never contested elections since they were registered. They are entitled to receive contributions and donations and get tax exemption under the Income Tax Act. However, the Election Commission is aiming to cleanse the RUPP ecosystem since a lot of RUPPs were found to be involved in taking bogus donations ending up in a loss of revenue for the exchequer because both the parties and donors could claim tax relief.