In the constitution, the only reference to political parties is found in the 10th schedule (disqualification). Framing and administering the rules for political parties comes under EC. EC has the ultimate power to register or deny the registration of any association of people as a political party or assign it status of a national party.
Major issues concerned with the Election finance reforms include – Limits on political contributions and party and candidate expenditure; disclosure norms and requirements; and State funding of elections. These issues are governed by RoPA, the Conduct of Election Rules, 1961; Companies Act, 2013; Income Tax Act, 1961; Foreign Contribution (Regulation) Act etc. Existing regulations Limits on Expenditure Between Rs. 54-70 lakhs for Parliamentary
Parliament of India had enacted two acts viz. Representations of Peoples Acts (RoPA), 1950 and RoPA, 1951 to provide a detailed framework around free and fair elections in the country. The 1950 law makes provisions for allocation of seats in Lok Sabha and Legislative Assemblies, Delimitation of Constituencies, Qualifications of voters, Manner of filling the seats