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255 Indian parties deemed suspicious
By Rama Lakshmi
Washington Post

NEW DELHI — When Prime Minister Narendra Modi abruptly scrapped large bills of India’s currency two months ago with the goal of curbing illicit wealth, many citizens asked why he spared the country’s political parties and their opaque funding practices.

The number of political parties is growing rapidly in the world’s largest democracy. At the last count, there were 2,045 registered political parties, up from 1,866 just a year ago.

One of the reasons behind the rise, election officials say, could be the generous waivers that political parties receive under the country’s tax laws.

In an unprecedented move last week, the Election Commission informed the tax authorities that it is removing 255 parties from its list because they have not contested a single election in 10 years and exist merely on paper.

‘‘The rapid growth in the number of political parties was suspicious, and we began a probe some months ago,’’ said an official with the Election Commission, who spoke on the condition of anonymity.

India’s tax rules exempt political parties from paying income tax, and they do not have to report details of donors who give less than about $300. The parties have also opposed recent moves to bring them under the nation’s Right to Information law, under which citizens can demand to read internal files.

Washington Post