Election Expenditure Monitoring [EEM] Training Haryana Vidhan Sabha Elections – 2014

1. Election Expenditure Monitoring [EEM] Training Haryana Vidhan Sabha Elections – 2014 Master Trainer : Sub-Divisional Magistrate, Jagadhri

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. Nothing Official About it… Ceiling Limit for a candidate Is there any Celing Limit for an Agent of Candidate? So,….

5. Where election expenses (legal/illegal) come from? • Through cash donations from large, medium and small companies • Through 'cuts' from funds allocated to public-private partnership (PPP) projects, large civic works • Funds from business houses in locality • Various funds meant for public works and also from tender approvals • Transfers of officials

6. Where money goes? • Posters and banners • Wooing voters: gifts like food, clothes, trips and individual benefits. • Rent-a-crowd: price ranging from Rs 100 to Rs 500. • Dummy candidates: to cut into the rival's votes. • Commuting costs: Provision of petrol and diesel for campaigners • Temporary offices: On an average, Rs 10,000 to Rs 15,000 a day • Full-time party workers: Each candidate has at least 100-150 full-time party workers - paid daily ranging from Rs 200 to Rs 1,500. • Transport: To ferry voters jeep/taxi costs from Rs 6,000 to Rs 10,000 a day for meetings/rallies.

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

8. 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 Expenditure See rule 90 of the CE Rules, 1961 Such type of expenditure of election expenses of the candidate is stopped 8

9. major legal provisions related to election expenditure monitoring RP ACT, 1951 Learning Module of RO/ARO 9

10. MAJOR LEGAL PROVISIONS RELATED TO EEM Conduct of Election Rules, 1961 10

11. the legal provisions related to election expenditure monitoring RP ACT, 1951 11

12. Learning Module of DEO

13. Provisions of the Indian Penal Code, 1860 13

14. 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.

15. 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.

16. 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.

17. 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.

18. 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. 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.

21. 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.

22. RATES OF ITEMS TO BE FIXED AFTER CONSULATATION WITH POLITICAL PARTIES: Learning Module of RO/ARO 22

23. 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.

24. 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) • Accounting Team • Media Certification and Monitoring Committee (MCMC) • District Expenditure Monitoring Committee (DEMC)- • Liquor monitoring Team

25. DEO Expenditure Observer Expenditure Monitoring Cell R.O. AEO MCMC (Dist./ State Level) DEMC 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

26. 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

27. 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

28. 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,

29. Video surveillance team 29

30. Video viewing team 30

31. Accounting team 31

32. MONITORING OF CAMPAIGN THROUGH MEDIA:MCMC 32

33. District level Mcmc – To operate 24x7 33

34. 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.

35. PREVENTIVE MEASURES : FLYING SQUADS 35

36. Flying squads 36

37. Static Surveillance Teams (SST) • There shall be two or more Static Surveillance Teams in each AC with 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 element 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.

38. 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.

39. REGISTRES MAINTAINED BY CANDIDATES TO BE CHECKED DURING INSPECTIONS • Register for maintenance of day to day a/c’s of election expenses by contesting candidates Refer annexure-14 of the instructions : • DAILY REGISTER : PART -A (Color: WHITE PAGES) • CASH REGISTER: PART -B (Color: PINK PAGES) • BANK REGISTER: PART -C (Color: YELLOW PAGES)

40. District Complaint Monitoring Cell • Copies of all complaints received and reports of inquiries conducted shall be put on the notice board of the RO for information of the Public. Any member of the Public can obtain copies of these documents on payment of a fee of Re. 1 per page. • All complaints filed with DISTRICT LEVEL Complaint Monitoring cell to be recorded and investigated

41. ASSISTANT EXPENDITURE OBSERVER One Asst. Expenditure Observer (AEO) for each Assembly segment: • AEO’s should be from Income Tax, Central Excise, Audit and Accounts or Central PSUs - of the rank Group ‘B’ Central Govt. Officers. • AEOs are appointed from date of announcement of election by DEO. • He would assist the Expenditure Observer and the DEO in scrutiny of the account election expenses submitted after the declaration of result.

42. STAR CAMPAIGNERS • All Passengers going by private aircrafts and helicopters will be frisked both in airports and airstrips • 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.

43. Star Campaigner • List of Star campaigners to be submitted to CEO or the Commission within 7 days of the notification • Travel expense of star campaigners of allied party are not exempt • If the Star campaigner travels with candidate or media person, 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 • If any attendant, Security Guard, Medical attendant 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

44. Public Meetings/Rallies • Format for applying for permission to hold public meeting/ rally is given in Annexure-16 • Candidate has to mention date time, duration and location of such meeting/rally alongwith expenditure plan for obtaining due permission • This is necessary for maintenance of law and order and proper video recording of events.

45. Rally Expenses • All public rallies and Public meetings (even before notification and after announcement) to be videographed • 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

46. 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’s 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 declarationfrom the publisher to be sent by the printer to CEO or DEO)

47. 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

48. 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 • Affidavit are to be scanned and uploaded to web site of CEO within 24 hrs of receiving. .

49. Learning Module of DEO

50. AFFIDAVITS OF ASSETS AND LIABILITIES etc. • The DEO/RO must get a scanned copy of such affidavits filed by the candidates uploaded on the website preferably within 24 hrs. of receipt. Learning Module of DEO