Election Expenditure Monitoring Bihar 2020 Expenditure Division Election

Election Expenditure Monitoring Bihar 2020 Expenditure Division Election Commission of India 1

Rescinding the election on detection of use of black money in polls. 1. During Lok Sabha Election, 2019 in 8 -Vellore PC, Tamil Nadu, cash worth Rs. 11. 48 Crore was seized by the Income Tax Department –cash in gunny bags. 2. Deferment of election to 174 -Thanjavur AC, Tamil Nadu Assembly Election, 2016: cash worth Rs. 20 Lakhs seized, FIR filed 3. Deferment of election to 134 -Aravakurichi AC, T. N Assembly Election, 2016: seized Rs 4. 77 Crore, sarees and dhotis worth Rs. 1. 30 Crore 4. Rescinding of bye-election to 11 -Dr. Radhakrishnan Nagar AC, Tamil Nadu, 2017: Rs. 18, 80, 700/- and various items such as lamps, T-shirts, silver plates, mobile phones and sarees had been seized, 35 FIRs filed 5. Postponement of date of poll of 154 -Rajarajeswari AC, Karnataka Assembly Election, 2018 - truck carrying goods worth about Rs. 95 seized Lakh by a Flying Squad another, concerning seizure of thousands of EPIC (Voter I Cards), Photo Voter Slips, Laptops, 2

Common Errors conducted by EOs To ensure Shadow register is neatly made and there should be proper cross referencing with regards to where evidence would be. In case of discrepancies found, ensure that DEO issues notice the same day. In reponse to notice, is candidate fails to produce day to day a/c and failure continues, FIR to be filed by DEO U/S 171(I) of IPC. Ensure that there is decent publicity for dates of inspection and the account details to be properly displayed. Ensure smooth communication between various enforcement agencies for quick action. 3

KEY NUMBERS Total seizure LA 2015: Rs. 23. 81 Crores Total seizure Lok Sabha 2014 Rs. 8. 71 Crores Total seizure Lok Sabha 2019: Rs. 16. 68 Crores Expenditure Sensitive Constituencies: 91 ESCs Expenditure Sensitive Pockets: 204 ESPs 4

Seizures in previous Elections in Bihar LOK SABHA ELECTIONS 2019 (In Rs) LEGISLATIVE ASSEMBLY ELEC. 2015 (In Rs) LOK SABHA ELECTIONS 2014 (In Rs) Cash Rs 6. 57 crores Rs 19. 90 crores Rs 4. 61 crores Liquor Worth Rs 8. 07 crores Worth Rs 3. 45 crores Worth Rs 3. 66 crores Drugs/Narcotics Worth Rs. 0. 34 crores Worth Rs 0. 46 crores Worth Rs 3. 66 crores Freebies/other item Worth Rs 1. 7 crores Total Rs 16. 68 crores Rs 23. 81 crores Rs 8. 71 crores 5

PUBLICITY OF CRIMINAL ANTECEDENTS • In persuance of SC Order (reference: WP(C) No. 536 of 2011) and press release by Commission dated 11. 09. 2020, timeline for publicity has been given) -candidates as well as the political parties, regarding candidates nominated by them, will publish the details of criminal antecedents. • Available at link: https: //eci. gov. in/files/file/12219 -press-release/ • Publicity- 3 times: Timelines are: • 1. (i) First publicity: Within first 4 days of last date of withdrawal. • (ii) Second publicity: Within 5 th to 8 th day of last date of withdrawal • (iii) Third publicity: From 9 th day till the last day of campaign, i. e. two days • Expenses-candidate and political parties (CEO office to provide indicative list of newspapers and TV channels) 6

Requirement of publishing details regarding candidates with pending criminal cases (Hon’ble SC order No. 2192 of 2018 in WP (C) No. 536 of 2011 - • If a political party fails to submit compliance report with the Commission, the Commission shall bring such non compliance by the political party concerned to the notice of the Supreme Court as being in contempt of the Court’s order. Accordingly, the political parties shall publish information regarding candidates with criminal antecedents with the reason for selection of such individuals in Format C-7 within the given time and a compliance report shall be sent in Format C-8 to the Commission within 72 hours of the selection of the candidates. 7

Threshold for cash transactions • Has been reduced to Rs. 10, 000 from Rs. 20, 000 • Applies to receipts and expenditurecandidates • Expenditure-Political Parties • Single transaction • Aggregate of transactions with the same person/entity during the entire poll period 8

Election Expenditure Monitoring Ensure capture and inclusion in election expenses Ensure capture, Seizure and legal action Surrogate advertisement, Paid News, Social Media Cash, gifts, liquor, food etc. for voters Advertising Public rallies Travel and logistics Where do Candidates Spend Money? Payments to agents offering votes in bulk Campaign material Personnel Ensure accounting and adherence to expenditure limit 9

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 act as pressure group to influence policy of government • Tainted governance and Rule of Law undermined • Excessive, illegal & illegitimate expenditure in elections is the root cause of corruption 10

TYPES OF ELECTION EXPENDITURE Election expenditure can be classified into two types on the basis of legal provisions Legal Expenditure [public meetings, posters, banners, vehicles etc. ] Illegal expenditure [Distribution of money, gifts, liquor or any other item among electors and expenditure on Paid News] Ceiling Such type of expenditure by candidates needs to be stopped Rule 90 of the CE Rules, 1961 AC-₹ 28 lakhs 11

LEGAL PROVISIONS Representation of the People Act, 1951 Conduct of Elections Rules, 1961 Instructions of the ECI Indian Penal Code, 1860 Income Tax Act, 1961 12

MAJOR LEGAL PROVISIONS RP Act, 1951 Sec 77(1) : Account of Election Expenses and maximum thereof • Candidate shall keep a separate, correct account of election expenditure • Between date of nomination & date of declaration of results Expln. 1(a) of Sec 77(1): Leaders of a Political party(Star Campaigners) • Expenses of star campaigners on travel are exempt. Expln. 2 of Sec 77(1) (Star Campaigners) • For recognised parties- 40 names. • For unrecognized parties- 20 names • To be communicated to the ECI and CEOs of the States • Within a period of 7 days from the date of notification. 13

MAJOR LEGAL PROVISIONS RP Act, 1951 Sec 78: Lodging of account with District Election Officer Sec 10 A : Disqualification for failure to lodge account of election expense • Account of candidate to be deposited with DEO within 30 days from the date of declaration of result. • Failure to lodge an account of election expenses within time and manner required by law and has no good reason or justification for the failure • Disqualification for a period of three years from the date of order of the Commission 14

INDIAN PENAL CODE, 1860 171 B: Whoever gives or accepts gratification to induce a person to exercise his electoral right commits the offence of bribery. 171 E: Whoever commits the offence of bribery shall be punished with imprisonment which may extend to one year, or with fine, or with both. 171 C : Undue influence at elections- Any act which voluntarily interferes or attempts to interfere with the free exercise of any electoral right. 171 F: one year imprisonment or fine or both. 171 H: Whoever without general or special authority in writing of a candidate incurs/authorises expenses on public meeting/ any advt. /circular/ publication for promoting/ procuring election of such candidate, shall be punished with fine which may extend to Rs. 500. 171 I: If a candidate fails to keep accounts of expenses incurred at or in connection with an election shall be punished with fine which may extend to Rs. 500. 15

EXPENDITURE MONITORING MACHINERY • • Expenditure Observer (EO) Asst. Expenditure Observer (AEO) Flying Squads and Static Surveillance Teams (FS and SST) Video Surveillance Teams (VST) Video Viewing Team (VVT) Accounting Team Excise team Media Certification and Monitoring Committee (MCMC) 16

EXPENDITURE OBSERVER (EO) • • • EO is responsible for overall supervision of expenditure monitoring. He is deployed for two or more Assembly segments, but not more than five ACs. More AEOs for Expenditure Sensitive Constituencies (ESCs) He will inspect functioning of different teams engaged in expenditure monitoring in each constituency and inspect the accounts of the candidates He will coordinate with various law enforcement agencies of Income tax, Police, State Excise, DRI, NCB, etc. 17

INSPECTION OF ACCOUNTS Candidates are required to maintain their Day to Day accounts and produce them for inspection 3 times before the Expenditure Observer (EO). The RO will notify 3 dates & timing well in advance in consultation with EO for such inspection. Gap between the two inspection should not be less than 3 days. Candidate can have a separate agent for election expenses. 18

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 notices and replies by candidates on payment of Rs. 1 per page. 19

FLYING SQUADS AND STATIC SURVEILLANCE TEAMS 3 or more Flying Squads(FS) and Static Surveillance Teams(SST) in each Assembly Constituency. FS-More in Expenditure Sensitive Constituencies(ESC) if required. SST- required at Expenditure Sensitive Pockets (ESP). Headed by a Magistrate (Adequate numbers/ gazette notification). Video Recording. GPS enabled vehicles/ Mobile tracking(C-Vigil). 20

ROLE OF DEO-RATE LIST The list of rates of items for use in electioneering to be given 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 so wish, may apply to the DEOs to notify the rates for such items. 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 There can be different rates for rural and urban areas in a state. 21

24 X 7 COMPLAINT MONITORING CONTROL ROOM District level Control Room to operate from the date of announcement of election. Toll free telephone no. with 3 -4 hunting lines. 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 ₹ 1 per page. All complaints filed with District Level Complaint Monitoring cell to be recorded and investigated 22

TRANSPORTATION OF CASH BY BANKS Use of bank vans and ambulances to transport cash • • • There are SOPs for the transportation of cash by banks: No cash of 3 rd parties or individuals Letters/documents to be carried Personnel shall carry identity cards RBI SOP regarding transportation of cash, including forex, by Authorised Dealers 23

EXPENDITURE SENSITIVE CONSTITUENCIES & EXPENDITURE SENSITIVE POCKETS ESC to be identified by CEO, based on profile of constituency and candidates More FSs and SSTs with CPF ESP to be identified by Sector Officers or police in a constituencybased on level of education, development and demography ESPs to be kept under close watch all the time ESPs to have 24 X 7 check post during last 72 hours before poll ESPs need more campaign for ethical voting Liquor sale to be closely monitored in ESPs 24

Thank You!! 25