Election Expenditure Monitoring [EEM] BRIEFING OF DEO/ RO’s - Assembly Elections- 2013

1. Election Expenditure Monitoring [EEM] BRIEFING OF DEO/ RO’s - Assembly Elections- 2013

2. Use of Money Power Without Money, Multi-party democracy cannot function But ‘Money Power’ involves certain risks: • 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.

3. MONITORING: RELATED ISSUES 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 No new law for seizure

4. legal provisions : Representation of People’s Act, 1951 Conduct of Election Rules, 1961 Instructions of Commission Indian Penal Code, 1860 Income Tax laws

5. Types of election expenditure Election expenditure can be classified into two types on the basis of legal provisions Illegal expenditure [Distribution of money, Gifts, liquor or any other item among electors with the purpose of influencing them] Expenditurepermissible under the law [public meetings, posters, banners, vehicle etc.] Ceiling for Karnataka,MP, Kerala- 16,00,000 Puducherry-8,00,000 LokSabha- 40 lakh Such type of expenditure of election expenses of the candidate is stopped 5

6. major legal provisions related to election expenditure monitoring RP ACT, 1951 Learning Module of RO/ARO 6

7. MAJOR LEGAL PROVISIONS RELATED TO EEM Conduct of Election Rules, 1961 7

8. MAJOR LEGAL PROVISIONS RELATED TO EEM Conduct of Election Rules, 1961 8

9. TO RECALL THE MAJOR LEGAL PROVISIONS RELATED TO EEM Conduct of Election Rules, 1961 9

10. the legal provisions related to election expenditure monitoring RP ACT, 1951 10

11. PROVISIONS OF INDIAN PENAL CODE, 1860 11

12. Provisions of the Indian Penal Code, 1860 12

13. Election Expenditure: Case Law The Hon’ble Supreme Court in L. R. Shivaramagowde Vs. P.M. Chandrashekhar - AIR 1999 SC 252 has observed that the Election Commission of India: Can go into the correctness of the account of the election expenses filed by the candidate, and Disqualify a candidate under section 10 A of the Representation of the People Act, 1951 in case the account is found to be incorrect or untrue. Grounds: The candidate does not lodge an account of election expenses in time and manner. The account lodged by the candidate is incorrect and untrue. 13

14. Tamil Nadu elections : VIDEO Let us watch a video on the cash seizures made during general elections to Tamil Nadu. ( Run Video seperately) 14

15. 1. Cash in envelopes in morning newspapers pushed beneath the door of the voter. 2. Inside Morning Milk pouch, along with cash in an envelope to the voter. 3. Through Self Help Groups (SHG) for onward distribution among women voters. 4. Through pawnbrokers by reimbursing the short term loan taken by voters, by mortgaging jewellery. 5. Paying cash as incentive for not casting vote by the committed voters of other rival candidate, if such voter shows his finger without indelible ink after election. 6. Cash given in advance before notification of election to the local leaders for distribution among voters. 7. Cash given through community feasts under the plate or banana leaf. 8. Cash given in the name of MGREGA, DWACRA and other government projects. 9. Cash given to dummy candidates for using the permission obtained by them for the campaign vehicles or political agents. 10.Cash given to certain non-serious persons of a locality to contest to divide votes of rivals.

16. 11. Cash given to Leaders of rival political parties, rival candidates not to seriously campaign in elections. 12. Black Money raised by party/candidate in name of coupon sale. 13. Cash given to the polling agents of rivals candidates, to be silent, during counting. 14. Cash given to village headman for ensuring votes. 15. Cash given to village fund on the eve of election for construction of road or temple or school, etc. 16. Distributing Cash among the Ladies who come for “Aarti” to candidate. 17. Distributing Cash for those who come to attend public rally arranged by party or candidate. 18. Making Cash payment for the vehicles or Trucks for ferrying the voters to the place of rally or to the polling booth. 19. Cash given to journalists or media men to write positively about the candidate or to write pessimistic news of rivals. 20. Cash given to journalists/media men to blackout the news about the rivals or to publish negative news.

17. 21. Cash transferred through RTGS route of banks to the a/c’s. 22. Cash given to the youth clubs on the eve of elections for organizing cricket match, football match. 23. Cash given for charity like organizing medical camp, melody party, theatres etc., on the eve of elections. 24. Distributing TVs, video recorders & projectors to village clubs. 25. Giving cash for constructing toilets, tubewells or mobile phone with top up cards or laptops to the voters or local leaders. 26. Organizing mass marriage functions during election process and bearing the entire cost of marriage. 27. Distributing SUVs or Luxurious vehicles to appease local party leaders. 28. Reimbursing fuel bills through negotiated deals with petrol pumps. 29. Promising jobs for the unemployed youth in the academic institutes or companies of the candidate. 30. Organizing religious functions like “Prabachan” Ramayan” “Hanuman Chalisha” etc. before elections.

18. 31. Distribution free books to the students, just before elections. 32. Free admission to children of influential voters of a locality in Engineering College or medical college run by the candidate. 33. Distributing free cows or buffalos among voters before election. 34. Distributing free agriculture seeds and manures among the voters. 35. Distributing free solar lamps among the rural voters. 36. Distributing diaries, calendars, purse, T-shirt, sarees and vanity bags. 37. Using ‘Aarthiyas’ (commission agents) for distribution of cash among farmers or waiving his commission demanded form the farmers. 38. Cash given to religious leaders or leaders of a caste for ensuring votes of their followers. 39. Distribution of liquor, drugs, poppy husks among the voters. 40. Organizing rallies with film stars, musicians, orchestra, important personalities in aircrafts or helicopters to the constituency and not showing the correct expenditure.

19. Modes of Transport of Cash In ambulance vans In bonnet of the car Inside door panels of the car On roof top of buses In police vans In Helicopters

20. Preventive methods for curbing the use of Black Money Campaign for “Ethical voting” through Media Announcement through Public address system fitted on the vehicles of the Flying Squads Separate Bank account by each candidate Involvement of school and college students in spreading the message against bribery during elections Involving Civil Society Organisations, RWA. NYKs etc

22. Mechanism for Election Expenditure Monitoring in Assembly Elections

23. MEETING WITH POLITICAL PARTIES • DEO will have a meeting with all recognised Political Parties within 3 days of announcement of election about the Instructions of the Commission and explain the legal provisions and give a copy of the compendium of instructions, • He will also discuss the various rates of expenditure and consider their suggestions before notification of rates, • CEO will arrange facilitation training at State Level on Expenditure Monitoring Measures for the representatives of all registered political parties of the state, to explain various legal provisions including the procedures.

24. Notification of rates for assessment of Expenditure • The list of these rates would be given by the RO to the candidates at the time of filing of nomination papers, • If the rate of any item is not available in the list, the candidate/election agent, if they wish, may apply with the DEOs to notify the rates for such items as well and the DEOs will take appropriate steps to notify them, • Any objection regarding the quantum of such rates has to be made to the DEO within 24 hours of notification, • To obtain airing charges from media houses with reference to campaigning through electronic media.

25. RATES OF ITEMS TO BE FIXED AFTER CONSULATATION WITH POLITICAL PARTIES: Learning Module of RO/ARO 25

26. TWO TRAINING PROGRAMMES • The DEO will arrange twofacilitation trainings at his own office for all election agents/candidates through the Exp. Monitoring cell , • One, immediately on the day of scrutiny of nomination in presence of Expenditure Observers to acquaint them with the legal provisions, procedures for filling up the forms and registers and dates of inspection of accounts, • Second, within a week before the final date of submission of accounts in presence of Asst. Exp. Observers ( i.e., after 20 days of declaration of results) with all election agents/candidates/personnel engaged in his office for receiving the accounts, regarding the procedure for filling up the forms of Abstract Statements of Election Expenses and affidavits, consequences for failure and other legal provisions.

27. NEW EXPENDITURE MONITORING MACHINERY • Expenditure Observer (EO) • Asst. Expenditure Observer (AEO) • Flying Squad and Static Surveillance Teams (FS and SST) • Video Surveillance Team (VST) • Video Viewing Team (VVT) • Media Certification and Monitoring Committee (MCMC) • Accounting Team • Liquor monitoring Team

28. DEO Expenditure Observer Expenditure Monitoring Cell R.O. AEO MCMC (Dist./ State Level) Expenditure monitoring control room 24x7 Call Centre Accounting Team (SOR / FE ) SST – Check post monitoring teams VVT F S- complaints of cash transactions /freebies VST Illegal Expenditure. Public meeting/Rally

29. EXPENDITURE OBSERVER (EO) To be appointed by the Commission. • EO’s are responsible for overall supervision of expenditure monitoring for two or more Assembly segments. • They will train the Asst. Expenditure Observers and inspect functioning of different teams engaged in expenditure monitoring in each constituency • They will coordinate with various law enforcement agencies of Income tax, Police, BSF/SSB, State Excise and DRI • They will assist the DEO in preparation of scrutiny report

30. Structure and Functions • Expenditure Observers for each district not more than five Assembly constituencies • Assistant Expenditure Observer for each constituency • More number of Observers and Assistant Observers in ESC (Expenditure sensitive constituency) • More number of Flying Squads and Static Surveillance teams with man power from central Govt. and central PSUs and CPF

31. Role of DEO • He shall make appeal to public to avoid carrying huge amount of cash during election process, • He shall give wide publicity about the 24X7 - Call centre and DistrictComplaint monitoring Cell, • He shall involve NYKs, NSS and other citizen forums to get information about distribution of cash and other gift items for inducement of electors, • He shall appeal to public and students for ethical voting and educate them that both receiver and giver of bribe are punishable as per law, • He shall be responsible for training of the manpower engaged in Expenditure monitoring teams and election agents.

32. EXPENDITURE MONITORING CELL (EMC) • This cell at district level will consist of a Nodal Officer on behalf of DEO, of the rank of SDM/ADM and two officials, who will be in charge of Expenditure monitoring training and coordination with all other team heads engaged in expenditure monitoring, • It will be responsible for expenditure monitoring efforts in the district, providing manpower and logistical support like space and equipments, • First training of the Asstt. Expenditure Observers (AEO’s) and all the officials engaged in various teams should be done by these Nodal Officers of Expenditure Monitoring Cell in the District as soon as the elections are announced, • This cell will keep custody of all shadow observation registers and folders of evidence after the poll, • Nodal Officer of Expenditure Monitoring Cell shall act as the link between the DEO and the EO, • EMC will assist the DEO and Expenditure Observer in finalizing the scrutiny report to be submitted after declaration of result.

33. Video surveillance team 33

34. Video viewing team 34

35. Accounting team 35

36. MONITORING OF CAMPAIGN THROUGH MEDIA:MCMC 36

37. District level Mcmc – To operate 24x7 37

38. Separate Bank Account • The candidate is required to open a separate bank account for the purpose of election expenditure, one day prior to filing of his nomination papers. • It can be opened in joint name of the candidate and his election agent, anywhere in the state. • This Bank account can not be opened jointly by the candidate with spouse or other relatives, if they are not the election agent of the candidate. • The account can be opened in any bank, including co-operative banks and Post Office. • At the time of filing the nomination the candidate will communicate the account number of this bank account to the RO in writing. • All the election expenses of the candidate should be met from this bank account. The candidate shall also submit a certified copy of the account statement after the poll.

39. SHADOW OBSERVATION REGISTER (SOR) & FOLDER OF EVIDENCE (FE) • SOR is for each Contesting Candidate in a constituency (ANNEXURE-11 of the Instructions). To record all expenses incurred on major events(public meetings/rallies etc.,) towards election campaign, • All expenditure recorded to be supported by CD/Video evidences(proper referencing) held in FE and to be cross- checked during Inspections • Signatures of candidate/ authorized agent to be taken • The SOR & FE to be handed to the Dy.DEO by the EO for safe custody before leaving the constituency, under receipt.

40. PREVENTIVE MEASURES : FLYING SQUADS 40

41. Flying squads 41

42. Static Surveillance Teams (SST) • The Static Teams shall be formed under each Police Station comprising of one magistrate, 3-4 Police personnel and one videographer. • They will be responsible for putting the check post on major road/arterial road to check movement of illegal cash/liquor/arms or gift items • There should be surprise elements in putting the check posts so that one can not anticipate about its placement. The Flying Squad of the district will supervise the posting of the Static Team/Check Post so as to avoid any harassment of public.

43. STATIC SURVEILLANCE TEAMS • The entire activity at the check post should be video graphed and the DVD handed over to Accounting Team, for keeping in `folder of evidence`. • Any member of public may ask and take copy the Video DVD/CD for a particular day by depositing Rs. 300/-. • It will submit a Daily Activity report in prescribed format (Annexure-9) to SP, RO and Assistant Expenditure Observer , • The Nodal Officer at Police Headquarters at State level will compile the Daily Activity reports of Flying Squads and Surveillance Team and send to the CEO and Commission. • EO to have coordination meeting with all law enforcement agencies of district and the teams.

44. SOP FOR FS/ SST • Flying Squad will supervise operation of SSTsand law and order issues arising out of the operation, • Flying Squad or Static Surveillance Team will seize cash or other gift items suspected to be used for inducement of electors under CrPC/ IPC, if criminality is suspected.

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47. STANDARD OPERATING PROCEDURE : SOP • 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., • An Appeal is to be made by DEO and CEO in local language through Flying Squads / media regarding the enforcement measures & advising the public and political functionaries not to carry huge cash during election process.

48. Visit of Expenditure Observer To reach the constituency on the day of notification of elections, EO to leave the constituency after submitting the poll preparedness report-I, 2nd Visit on date immediately after the date of withdrawal of candidature and remain in the constituency during entire campaign period and leave the constituency only after the completion of poll and sending his Report-III, 3rd visit after 30 days from declaration of results to assist in finalisation of scrutiny report prepared by DEO. He/ she will send their Final Report- IV after that.

49. INSPECTION OF ACCOUNTS OF ELECTION EXPENDITURE • Candidates are required to produce their accounts for Inspection3 times or more before the Expenditure Observer (EO) or any officer authorized by him. The RO will notify 3 dates & timing well in advance in consultation with EO for inspection of election expenditure accounts maintained by candidates, • RO will ensure that the latest Instructions of the Commission on expenditure monitoring are given to the candidates, in local language, • All the teams should be trained as per the latest Instructions on EEM.

50. Inspection of Accounts • Gap between the two inspection should not be less than 3 days and inspection to be done in such a way that major portion of expenses are covered under inspection, • Candidate can have a separate agent for election expenses, • Inspection to be done in the office chamber of RO or any other Office room NOT AT THE GUEST HOUSEbetween 10AM to 5PM, • Publicity has to be given about the contact number of EO and time of inspection,