The Election Commission measures to combat Money Power during the next

The Election Commission measures to combat Money Power during the next general elections (Delhi- 2013)

The spirit of democracy is not a mechanical thing to be adjusted by abolition of forms. It requires change of hearts. Democracy is something that gives the weak the same chance as strong. -Mahatma Gandhi

The US Secretary of the state, Hillary Clinton was more justified when she said during her visit to India in 2012, "India's Election Commission is viewed as a global standard for running democracy."

Objectives of the workshop To sensitise about the legal framework, new instructions on Expenditure monitoring and the enforcement measures To enable the participants to be the master trainers for their party and the candidates To open communication channel with the Commission through the participants, seeking cooperation from the party The participant should act as the Nodal officer for interaction with the Commission on Expenditure related issues

Money power in Election Without Money, Multi-party democracy cannot function Risks of Money Power: Uneven Playing field and lack of fair competition Political Exclusion – Certain sectors face disadvantage Co-Opted politicians under campaign debts Tainted Governance and Rule of Law undermined

TYPES OF ELECTION EXPENDITURE Election expenditure can be classified into two types on the basis of legal provisions Expenditure permissible under the law [public meetings, posters, banners, vehicle etc.] Ceiling for A.C.- Rs. 14 Lakhs P.C.- Rs. 40 Lakhs See rule 90 of the CE Rules, 1961 Illegal [Distribution Gifts, liquor item among the purpose them] expenditure of money, or any other electors with of influencing Such type expenditure election expenses the candidate stopped of of of is 6

Legal Framework Distribution of Cash, liquor and other articles among voters is bribery and both the giver and the taker are punishable with imprisonment up to 1 year. (Sec 171B ,I P Code) It is Corrupt Practice under Sec. 123 of RP Act 1951. Candidate has to maintain a correct and true account of Election Expenditure in the manner prescribed and to lodge the Accounts in time (Section 77 & Section 78 of RP Act, 1951)

Legal Framework Contesting Candidates may be disqualified Section 10 A of R.P act, 1951 for 3 years on following grounds: Not lodging Accounts in time. Not Lodging in manner prescribed The ECI may go into correctness of accounts of Election Expenses and may disqualify the Candidate for 3 years, u/s 10A (L.R.Shivramagowde Vs. P.M. Chadrashekhar, SC)

Commission’s power to Disqualify a winning candidate In case of Ashok Chauhan and Madhu Kora, Delhi High Court held: “ the commission can go into the truthfulness or untruthfulness of accounts. How far the Commission can go will be a question of degree. It will be realm of exercise of power.”

Money Power in Election Ceiling on election expenditure of the candidate is Rs 14 lakh for Assembly Constituency and Rs. 40 lakh for Lok Sabha election in Delhi. If ceiling exceeded by winning candidate, election petition to Court. No ceiling on expenditure by Political Party. But Political Parties submit the accounts of election expense within prescribed time limit (75 days in case of assembly election and 90 days in case of Lok Sabha election)

Legal sanction for seizure of Un-accounted Cash Carrying cash is not illegal under any Law and is not anathema to regular business. But if it is undisclosed, Income Tax Department can seize. If it is out of illegal foreign exchange, ED can seize. If it is suspected to be for bribery, terror, theft, narcotics etc, Police authorities can seize There is No new law for seizure .

Measures by Election Commission Separate Expenditure Monitoring division at Election Commission level to monitor the election expenditure mechanism. Expenditure Monitoring Cell to be formed in each district comprising of Dy. DEO and various teams to track the election expenditure.

Measures by Election Commission Preventive Measures Appeal to Political Parties: I. To exercise self restraint. II. To avoid transactions in cash during the election process. III. To advise their party functionaries, candidates and agents not to carry cash exceeding Rs. 50,000/- in the constituency during election process.

Campaign by ECI for ethical voting Campaign for educating the voters on the legal provisions against bribery. Applicable to both takers and givers – Punishment upto 1 year of imprisonment. Campaign through schools and colleges against bribery. Campaign voting. through advertisements in Media for ethical Involvement of NGOs and civil society organizations to spread the message against bribery

Let us watch a video on Ethical Voting

Measures by Election Commission Candidates to open separate bank account for election expenses, with any bank or Post office at least one day before nomination. Bank Account can be opened in joint name with the agent and candidate. Candidate can have separate agent for election expenses. To incur all expenses by A/c payee cheque, if payment to a single party during election process exceeds Rs.20,000/-. To submit the Copy of the bank account along with the expenditure statements after 30 days of declaration of the result.

Register of Day-to-day accounts To maintain Day to Day Accounts of election expense in revised form, given by the RO ( Part-A) The register has to be maintained along with Cash Register and Bank Register (Part- B and Part- C) The bills and vouchers no. are also to be entered in the register and duly serial numbered vouchers are to be lodged with DEO The register along with bank passbook has to be produced before Exp. Observer or any other authorized person for inspection on notified dates If any discrepancy is pointed out, candidate has to reconcile the difference within stipulated time Any public can get the copy of the register after inspection on payment of Re.1/per page

Meetings with DEO and RO DEO will hold a meeting within 3 days of announcement of election with Political Parties to discuss the legal provisions and expenditure monitoring measures. RO will hold a meeting with all candidates after allotment of symbols to discuss the expenditure monitoring measures. Training of candidates and election agents on expenditure monitoring will be done on the same day or a day after. Facilitation training of all candidates /election agents before one week of submission of final accounts.

New Mechanism for Monitoring of Election Expenditure

The Expenditure Monitoring Teams

Measures for Expenditure Monitoring Identification of Expenditure Sensitive Pockets (ESPs) and Expenditure Sensitive Constituencies (ESCs) prone to high election expenditure and corrupt practices on the basis of past history, profile of the constituency and other Developments. The Expenditure monitoring mechanism will be further strengthened suitably in these constituencies.

24X7 Call Centre and Complaint Monitoring System for each district An All India Toll free single number 24X7 Call Centre to receive complaints related to elections District Level Complaint Monitoring Cell with toll free number to work 24 x 7 to receive complaints and monitor action on all complaints The telephone numbers of Expenditure Observer/ Assistant Expenditure Observers to be advertised A complaint monitoring cell with toll free number by Income tax Department All calls made to the call centres shall be recorded for future verification.

Flying Squads and static Surveillance Teams Flying squads (FS) to become operational from announcement of election. FS for each Constituency with one executive magistrate, one police officer and 3 or 4 Police Officials and one videographer to take action against all complaints Static Surveillance Teams (SST) to become operational from date decided by Commission or from date of notification of election. SST with CPF and videographer to put check posts on major arterial roads This will be supervised by the SPs and Daily Activity Report sent to Expenditure Observer. I.G. Level Police Officer to supervise the surveillance activities of Police and send report to Commission In ESC, Police Observers from outside the state will be sent

Standard Operating Procedure Advertisement to be done by DEO and CEO in local language in local news paper and through Flying Squads regarding the enforcement measures on bribe & advising the public and political functionaries not to carry huge cash during election process without proper documents. To spread awareness amongst public not to indulge in bribery ie: not only giving but taking of gift is also bribery and provisions of IPC thereof. Teams to be courteous and decent. If criminality suspected, the teams can seize .

Procedures of seizure of illegal items 26

Procedures of seizure of illegal items 27

Standarad Operating Procedure: SST Based on the Hon’ble Supreme Court Order: Para 4.7.1 of the EEM Instructions (July, 2012) now reads as follows : “During checking by SSTs, if any cash exceeding Rs.50,000 is found in a vehicle carrying a candidate, or his agent or party worker or carrying posters or election materials or any drugs, liquor, arms or gift items (valued more than Rs.10,000) which are likely to be used for inducement of electors or any other illicit articles are found in a vehicle, the same shall be subject to seizure. Whole event of checking/seizure to be video graphed by video team submitting CD to R.O.”,

Standard Operating Procedure Convenience of General public to be kept in mind during such checking by FS/SST. Choking of National highways are to be avoided. The whole event of checking and seizure has to be video graphed by the video team and vehicles of politicians are also to be checked. The members of the checking teams should be selected on the basis of their integrity and they should be under watch also.

Standard Operating Procedure In case of certain cash seized by SST/FS: Appellate authority is the SDM/ADM of that Distt. (in charge of the expenditure monitoring cell). The appellate authority shall hear the cases and take appropriate steps for redressal of grievance/s as per law. In case of seizure by Income tax Deptt.: Joint. / Addl. Director of Income Tax(Inv.) in charge of the Distt. Or Designated Nodal officer at the office of DGIT(Inv.) may be contacted.

Structure and Functions Expenditure Observers for each district Assistant Expenditure Observer for each constituency More number of Observers and Assistant Observers in Expenditure Sensitive Constituency (ESC) and Expenditure Sensitive Pockets (ESP’s) More number of Flying Squads and Static Surveillance teams with man power from central Govt. and central PSUs and CPF in case of expenditure sensitive constituencies

Video Surveillance Teams for each constituency To take video shots of Major Election Expenditure including public rally, processions size of tents, furniture, dais, rostrums, barricades, posters, hoardings, arches, illuminations and Cut-outs etc. To submit Video Cue sheet and video clippings on the same day to the Video viewing team. Any member of public can have a copy of the DVD on payment of Rs.300/-

Video Viewing Teams for each constituency To view each video taken by the Video Surveillance Team and prepare Report of Expenditure incurred by each candidate or party and to submit report of estimated expenditure along with folder of evidence and Cue sheet to the Accounting Team within 24 hrs To submit report regarding MCC violation to RO/General Observer.

Accounting Team for each constituency Accounting Team to maintain shadow Observation Register and folder of evidence for each candidate. Copy of DVD can be given to public after inspection To compile the reports received from all expenditure teams and enter in Shadow Observation register on the same day Expenditure Observer to intimate to candidate the excess observed expense during inspection

Media Certification and Monitoring Team For each district, a team headed by Deputy DEO and District PRO & Staff and one nominee of Press Council of India to monitor print and electronic media and Paid News. In ‘Paid News’, the candidate to be issued notice for not accounting the expenses within 96 hours by RO and PCI informed about the Print media involved To submit daily report to the Accounting Team with respect to media advertisement expenditure by the Candidate. It will report to DEO and General Observer regarding any MCC violation

In case of any advertisement in print media, or any printing of banner, poster, pamphlet, sec 127 A of R P Act to be followed, which requires: Declaration from the publisher of the advertisement, attested by two persons Press to forward to CEO/ DEO within seven days the copy of advertisement and declaration Penalty: Punishable with imprisonment up to 6 months or fine

Inspection of Accounts of election expenditure Candidates are required to maintain Day to Day Accounts and produce for inspection 3 times or more before the Expenditure Observer or any officer authorized. Dates and timing of inspection to be notified in advance. Notice to be issued to candidate in case of failure to lodge accounts for inspection and FIR to be filed if failure continues (Sec 171I of IPC). Withdrawal of permission for use of campaign vehicle, if the failure continues in spite of notice.

Inspection of Accounts of election expenditure Expenditure Observer to bring to the notice of the candidate in writing at the time of inspection, If the expenditure as per Shadow Observation register is more than the amount shown by the candidate or any Paid news is suspected Signature of the candidate or his agent is obtained on the Shadow Observation Register/Folder of eviddence. RO will issue also notice to the candidate on such discrepancy. Copy of the notice will be displayed on the notice board of RO. Any member of public can obtain copy of Shadow Observation Register after inspection, notices and replies by candidates on payment of Re. 1/- per page

DISTRICT EXP. MONITORING COMMITTEE (DEMC) 39

DEMC Contd . 40 If no reply is recd. from candidate within 48 hours of receipt of the notice, then suppressed amount shall be treated as final and added to his election expenses. If candidate/his election agent disputes the suppressed expenditure, he shall submit the reply mentioning the reasons for disagreement and the same shall be forwarded to the District Expenditure Monitoring Committee (DEMC) consisting of the following: (a)Expenditure Observer in charge of the Constituency (b)DEO (c) Dy. DEO/Officer in charge of Expenditure Monitoring of the District. The DEMC shall decide the case after examining the evidence mentioned in the notice and reply of the candidate, preferably within 72 hours from the date of receipt of the reply from the candidate, whether such suppressed expenditure shall be Lea added or not rnin g Mod ule of DEO

DEMC Contd . Items of expenditure not shown correctly in a/c statement of candidate filed after election result, vis-à-vis the Shadow Observation Register, notice to be served on the candidate by DEO within 24 hours. The candidate shall submit his reply within 48 hours of the receipt of such notice. If candidate does not submit any reply, the DEO shall decide the case on merits and intimate his decision to the candidate/agent. If candidate does not file his statement of election expenses within the stipulated period of 30 days from the day of declaration of result, then the DEO shall send the report to the Commission mentioning such default.

Measures for Expenditure Monitoring Associating Income Tax Investigation Directorate: I. To keep vigil over movement of illicit cash during election process through airports, major railway stations, hotels, farm houses, financial brokers cash couriers, Pawn brokers and others. II. To keep watch on ostentatious expenditure during the election. III. To open a 24X7 Call centre to receive complaints from public. IV. To send report to the Commission, after verifying the assets and liabilities declared by the candidates during nomination. V. To compile list of Political Parties which are not filing IT return regularly.

Other measures of Expenditure Monitoring Mechanism Bank reports of Cash withdrawal above Rs. 10 lakh. FIU to send Suspicious cash withdrawal report to Income tax Deptt. on real time basis. The Directorate of Revenue Intelligence will keep watch on International Airports and Enforcement Directorate on cash movement and report suspicious instances to the Investigation Directorate of Income Tax. BSF and SSB to keep greater vigil on border. Appeal by DEO to political parties, candidates and public not to carry large sum of cash.

Star Campaigners The travel expense of Star campaigners will be exempt List of Star campaigners to be submitted to CEO and the Commission within 7 days of the notification and travel expense of star campaigners of allied party are not exempt (Allied party leaders not allowed exemption) The candidate or Party shall inform about the travel plan of the aircraft or helicopter 24 hrs in advance for landing and take off in non commercial airports, to DEO for security purpose. Candidate shall inform the RO concerned within 5 days of landing about the hiring charges paid or payable for helicopter /air craft and name of the pol. Party incase hiring charges borne by it.

Star Campaigner If the Star campaigner travels with candidate, then 50% of the travel expense will be added to the candidate If the candidate shares the ‘Pandal’ with the Star Campaigner or his photo or poster with his name is exhibited in the meeting, then the meeting expense will be added to his account Exemption of travel expenses: If any attendant, Security Guard, Medical attendant, any representative of electronic/ print media or any person including any member of the party not being a candidate in the constituency and not playing any role in election campaign for the candidate

SOP: CHECKING OF HELICOPTERS/ AIRCRAFT- Commercial Airports The Bureau of Civil Aviation Authority Instruction During election process proper frisking and pre-embarkation, checking of all persons, screening/ physical Checking of baggage to be done, No prior permission for landing/ takeoff at commercial airports from DEO. But ATC to keep records of all such pvt. Aircrafts/ helicopters and make available such info. To the CEO and DEO within 3 days of landing or takeoff. The CEO to share this info. With EO for accounting purpose. ATC to inform the CEO and DEO of the district concerned about the travel plan of chartered aircrafts/ helicopters as early as possible, preferably half an hour in advance. 46

SOP: CHECKING OF HELICOPTERS/ AIRCRAFT- Commercial Airports Contd . CISF to inform the Income Tax dept. if cash above 10Lacs/ bullion 1kg or more is detected in poll bound states, enforcement agencies like CISF, State Police and Income Tax dept. to develop their internal SOP in a way that the entire event right from detection to seizure or release at the airport is captured by CCTv/ Video camera. The

SOP: CHECKING OF HELICOPTERS/ AIRCRAFT- Non- commercial airports For such non- commercial airstrips/ helipads during election process physical checking of all baggage brought out of the craft to be done by Flying Squad/ Local Police authorities in co-ordination with pilot of the aircraft ( excepting the handheld purse/ Pouch of the passengers). Body frisking to be avoided unless there is specific information For airstrips/ helipads not used for commercial purposes applications to be made to the DEO concerned 24 hrs in advance by candidate or pol. Party, giving details of travel plan, place of landing in district and names of passengers. Every candidate shall inform the RO concerned within 5 days in writing, regarding the details of expenditure incurred on hiring such crafts and name of pol. Party if party has borne the expenses with names of passengers. 48

Rally expenses All public rallies and Public meetings (after announcement and even before notification ) to be videographed for monitoring party expense. (Not to be added to candidate) Rally expense for filing nomination to be included Public who attend the rally in their own vehicle without receiving any payment or without any flag, banner or photo of candidate not to be included Commercial vehicles used for rally to be included in expense Notional cost of fuel and driver salary of one Personal vehicle used by the candidate to be added (Notional cost of hiring in case of more than one personal vehicle used) One vehicle of district level party officer ( Not being the candidate) exempted If a group of candidates are present in the rally or meeting, the expenses to be apportioned amongst all

Printing pamphlets, banners and posters The print and electronic media, cable network and FM radio will be closely monitored Prior approval of CEO before any broadcast or telecast Press or publisher name and address, number of copies and amount charged to be mentioned in all printed material including media advertisements and sent to DEO immediately Advertisement in Print media to be covered under section 127A of RP Act,1951 (copy of the printed material and declaration from the publisher to be sent by the printer to CEO or DEO)

Monitoring of vehicles Candidates to submit before the RO details of vehicles proposed to be used and obtain permission in writing. Permission letter to be displayed on the wind screen of vehicle. Permission given to a particular candidate being used by another, vehicle to be seized and exp. For entire period to be added

Notification of rates by DEO DEO to notify the local rates of construction of pandals or hiring of vehicles and other expenses, in consultation with the political parties before notification. Rates should not be unrealistic and should take in to account the local ground realities If the candidate or party feels that the rates are excessive, they may take up with the DEO immediately after notification of such rates and DEO shall consider such requests

Other Instructions If candidate attends a community kitchen, during election campaign, (other than those organised by religious communities and normal ceremonies like marriage etc,) the entire expenditure will be added as his election expenditure If the vehicle permitted to any independent candidate or any other candidate is found carrying campaign material of another candidate or being used for campaign for any other candidate, the entire expenditure on the vehicle from the date of permission will be added to the candidate using it for his campaign and permission will be withdrawn

Other Monitoring Measures Daily Production, Distribution and Off take of liquor in the state is to be monitored and close watch over inter state border The bookings of marriage halls and Mandaps to be monitored Distribution of gift items and cash coupons to be closely monitored Unusual cash deposit/ withdrawal in account of SHGs and NGOs Disbursal of wages under ongoing Government schemes only in presence of Government officials during elections

Lodging of Accounts of election expenses Candidates are required to lodge their accounts of election expenses with the DEO within 30 days of declaration of result in manner prescribed, along with the register of election expenses (Under Sec78 of the RP Act,1951) Documents required to be filed: 1. Part I to Part VI of Abstract statement signed by the candidate 2. Copy of Bank statement 3. Affidavit signed by the candidate 4. Register of Day-to-day Accounts with all bills and vouchers in original 5. Copies of expenditure related notices issued by RO and replies to such notices 6. Replies to discrepancies pointed out at the time of inspection

Consequences of Defective return or late return Disqualification under section 10A of RP Act, 1951 For late filing without good reasons, For not filing in format prescribed, For not submitting true and correct accounts.

Affidavit of asset and Liability To file Affidavit of Asset and Liability along with nomination of self, spouse and dependant children as per revised format. Affidavit to contain: I. Actual value and cost of addition to Immovable assets along with Market value II. Bank Deposits and Shares III. Actual liabilities including Govt. dues and disputed liabilities IV. PAN of self, spouse and children and Income Tax paid as per last return V. Cases pending and Conviction Orders obtained in criminal cases

Returns by Political Parties Political Parties are required to file their statement of election expenses with the commission within 75 days of Assembly election and 90 days for Parliamentary election. Political parties are also required to file with the Commission the list of donations received with names and address of donors (Under Sec 29C of the RP Act,1951). Political Parties are also required to file their Annual Audited Accounts with the Income Tax Department (Sec 139 of Income Tax Act, 1961) before 30th Sept.

Training CEOs will organise a Facilitation Training Programme at state level with all registered Political Parties on the new mechanism of election expenditure monitoring ROs will organise Facilitation training programme with all candidates or their election agents, immediately after allotment of symbols DEO will organise 2nd Facilitation training programme after 20 days of declaration of result on procedure for lodging of accounts with DEO and consequence of failure

Contact Details P K Dash, Director General: Phone 011-23356025 Fax 011-23318506 Mob: 09868301742 Email: [email protected] B B Garg, Joint Director: Phone 011-23052009 Fax 011-23052003 Mob: 08130920555 S K Rudola, Secretary: Phone 011-23717094 Fax 011-23052049 Mob: 09013308437

Pledge I do swear in the name of God / do affirm that I shall uphold the democratic traditions of our country, as mandated under the constitution with utmost sincerity and dedication, and shall make all efforts towards curbing the pernicious effects of Money power and Muscle power, and shall ensure conduct of free, fair and clean elections

THANK YOU 62