Election Expenditure Monitoring [EEM] BRIEFING OF MASTER TRAINERS- Assembly Elections- 2013

1. Election Expenditure Monitoring [EEM] BRIEFING OF MASTER TRAINERS- 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. 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

4. 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

6. “MANIFESTO OR MONEYFESTO” • If you promise to give (Manifesto), it’s ok but if you actually give ( distribute), its not ok… • People know our politicians well.. so they don’t go by “manifesto” but they go by “ moneyfesto”

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

8. ! • Excessive, illegal & illegitimate expenditure in elections is the root cause of corruption.

9. 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

10. 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.

11. Tamil Nadu elections : VIDEO Let us watch a video on the cash seizures made during general elections to Tamil Nadu Assembly. 11

12. 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

13. 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 13

14. major legal provisions related to election expenditure monitoring RP ACT, 1951 Learning Module of RO/ARO 14

15. MAJOR LEGAL PROVISIONS RELATED TO EEM Conduct of Election Rules, 1961 15

16. MAJOR LEGAL PROVISIONS RELATED TO EEM Conduct of Election Rules, 1961 16

17. MAJOR LEGAL PROVISIONS RELATED TO EEM Conduct of Election Rules, 1961 17

18. TO RECALL THE MAJOR LEGAL PROVISIONS RELATED TO EEM Conduct of Election Rules, 1961 18

19. the legal provisions related to election expenditure monitoring RP ACT, 1951 19

20. Learning Module of DEO

21. Provisions of the Indian Penal Code, 1860 21

22. Election Expenditure: Case Law • The Hon’ble Supreme Court in L. R. Shivaramagowde Vs. T.M. Chandrashekhar - AIR 1999 SC 252 has observed that the Election Commission of India: • Can go into the correctness of the account of 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. 22

23. 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.

24. 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.

25. 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.

26. 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.

27. 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

28. 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

30. Let us watch a video on ethical voting!

31. Mechanism for Election Expenditure Monitoring in Assembly Elections

32. 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.

33. 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.

34. RATES OF ITEMS TO BE FIXED AFTER CONSULATATION WITH POLITICAL PARTIES: Learning Module of RO/ARO 34

35. 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.

36. 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

37. 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

38. 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

39. 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

40. 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.

41. 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,

42. EXPENDITURE MONITORING CELL (EMC) • 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.

43. Video surveillance team 43

44. Video viewing team 44

45. Accounting team 45

46. MONITORING OF CAMPAIGN THROUGH MEDIA:MCMC 46

47. District level Mcmc – To operate 24x7 47

48. Separate Bank Account • The candidate is required to open a separate bank account for election expenditure, at least 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.

49. 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.

50. PREVENTIVE MEASURES : FLYING SQUADS 50