Monitoring of Election Expenditure

2. Monitoring of Election Expenditure

3. NCT OF DELHIPARLIAMENTARY CONSTITUENCIES AND ASSEMBLY CONSTITUENCIES Total Revenue Districts : 11 Total Election Districts : 09 Total Parliamentary Constituencies: 07 Reserved (SC) : 01 Total Assembly Constituencies : 70 Reserved (SC) : 12 Population of State (2011) : 1.67 Cr. Population of State (Projected 2013):1.74 Cr. Polling Stations : 11763 Polling Station Locations : 2602 Voters in 2008 Assembly Elections : 1.07 Cr. Voters in 2009 Lok Sabha Elections: 1.11 Cr. Voters in current Electoral Rolls : 1.15 Cr.

4. ELECTION SCHEDULE OF PREVIOUS TWO ASSEMBLY ELECTIONS DELHI & LOK SABHA ELECTION

5. USE OF MONEY POWER 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

6. Ceiling Limit: LakshmanRekha So, they don’t cross it …. jump over it

7. NOTHING OFFICIAL ABOUT IT… Ceiling Limit for a candidate

8. 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

9. REMOVAL OF HOARDING/BANNERS ETC.

10. DURING LAST LOK SABHA ELECTION

11. LEGAL PROVISIONS Representation of the People Act, 1951 Conduct of Election Rules, 1961 Instructions of Commission Indian Penal Code, 1860 Income Tax laws

12. 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 Delhi Assembly - 14L LokSabha- 40 lakh Such type of expenditure of election expenses of the candidate is stopped 12

13. major legal provisions related to election expenditure monitoring RP ACT, 1951 Learning Module of RO/ARO 13

14. TO RECALL THE MAJOR LEGAL PROVISIONS RELATED TO EEM Conduct of Election Rules, 1961 14

15. the legal provisions related to election expenditure monitoring RP ACT, 1951 15

16. the legal provisions related to election expenditure monitoring RP ACT, 1951 16

17. PROVISIONS OF INDIAN PENAL CODE, 1860 17

18. PROVISIONS OF THE INDIAN PENAL CODE, 1860 18

19. 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 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. 19

20. Forty Ways of use of ‘Black money’ in elections

21. 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.

22. 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.

23. 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.

24. 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.

25. 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 In ATM vans

26. 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

28. Mechanism for Election Expenditure Monitoring in Assembly Elections

29. Separate Bank Account • The candidate 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 nomination the candidate will communicate the account number of this bank account to the RO. All the election expenses of the candidate should be met from this bank account.

30. Expenditure Sensitive Constituency(ESC)Expenditure Sensitive pockets (ESP) • ESC to be identified by CEO in consultation with DEOs based on profile of constituency • More FSs and SSTs with CPF • ESP to be identified in a constituency based on level of education, development and demography • ESPs to be kept under close watch for SST • ESPs to have 24X7 check post during last 72 hours before poll • ESPs need more campaign for ethical voting • Liquor sale to be closely monitored in ESPs

31. 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) • Dist. Exp. Monitoring Committee (DEMC) • Accounting Team • Liquor monitoring Team

32. EXPENDITURE MONITORING MECHANISM

33. EXPENDITURE MONITORING MECHANISM

34. EXPENDITURE MONITORING MECHANISM

35. EXPENDITURE MONITORING MECHANISM

36. 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

37. EXPENDITURE OBSERVER (EO) • EOs 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

38. 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 would He will send his final(IV) Report after that.(would stay for 7 days)

39. 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.

40. 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,

41. Inspection of Accounts • The Accounting Team alongwith the AEO to be present with Shadow Observation Register and folder of evidence during inspections, • The details of excess expenditure, if any found based on evidences gathered, must be recorded in writing on the register maintained by the candidate and also on the SOR/FE and signatures of candidate/Agent obtained on both. It must be counter signed by EO/AEO and Accounting team head, • Commission considers the comments of Expenditure Observer in the register at the time of disqualification proceedings.

42. Inspection of Accounts • Instances of suspected Paid News will also be noted in the register, • RO to issue notice to candidate on all such discrepancies and also on all advertisements / Paid News, • A photocopy of the accounts maintained by the candidates should be obtained after each inspection and RO will display a copy on the notice board

43. Inspection of Accounts • Notice to be issued to candidate in case of failure to produce accounts for inspection and FIR to be filed if failure continues (Sec 171-I of IPC), • Withdrawal of permission for use of campaign vehicle, if the failure continues in spite of notice, • Intimation of such withdrawal of permission to the Flying Squad to take the vehicle out of campaign, • 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.

44. 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)

45. 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

46. ASSISTANT EXPENDITURE OBSERVER One Asst. Expenditure Observer (AEO) for each Assembly segment: • AEOs should be of the rank Group ‘B’ Central Govt. Officers. In case of shortage of officers Officers of state finance or treasury may be deployed. • 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.

47. Video surveillance team 47

48. Video viewing team 48

49. Accounting team 49

50. 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.