The murky world of political party finance

One of the enduring ironies of the Indian political system is that political parties, which are considered the principal stakeholders of electoral democracy, do not find a mention in the Constitution, except in the Tenth Schedule. They exist as “associations” in furtherance of the fundamental rights under Article 19. No effort has been made to define and straitjacket their legal character to conform to being a company, trust, society, firm or a not-for-profit company. Even so, they continue to enjoy the benefit of income-tax exemption in an unprecedented and unparalleled manner, sometimes becoming mysterious receptacles of inexplicable monies. Just as there are shell companies that fulfil unstated purposes, there are shell political parties that serve an insidious intent. And thereby hangs a tale.