The Election Commission
measures to combat
Money Power during the
next general elections
(Loksabha election- 2014)
Money power in Election
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
Legal Framework
•
Distribution of Cash, liquor and other articles
among voters is bribery and both the giver
and the taker are punishable with
imprisonment up to 1 year. (Sec 171B ,I P Code)
•
It is Corrupt Practice under Sec. 123 of RP
Act 1951.
•
Candidate has to maintain a correct and true
account of Election Expenditure in the
manner
prescribed and to lodge the
Accounts in time (Section 77 & Section 78 of RP
Act, 1951)
Legal Framework
Contesting Candidates may be disqualified
Section 10 A of R.P act, 1951 for 3 years
on following grounds:
•Not
lodging Accounts in time.
•Not
Lodging in manner prescribed
•The
ECI may go into correctness of
accounts of Election Expenses and may
disqualify the Candidate for 3 years, u/s
10A
(L.R.Shivramagowde
Vs.
P.M.
Chadrashekhar, SC)
Money Power in Election

Revised Ceiling on election expenditure of the
candidate for Rs 28 lakh for Assembly and Rs. 70
lakh for Lok Sabha election. (Earlier 14 Lakh and 40
Lakh respectively)

If expenditure by winning candidate exceeds the
ceiling, election petition to Court.
No ceiling on expenditure by Political Party.
 Party expenditure for the candidate to be accounted
for the candidate
But Political Parties submit the accounts of election
expense within prescribed time limit (75 days in case
of assembly election and 90 days in case of Lok Sabha
election)

Separate Bank Account

Candidates to open separate bank account for election
expenses, with any bank or Post office one day before
nomination.
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Bank Account can be opened in joint name with the agent and
candidate.
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Candidate can have separate agent for election expenses.
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To incur all expenses by A/c payee cheque if payment to a
single party during election process exceeds Rs.20,000/-.

To submit the Copy of the bank account along with the
expenditure statements after 30 days of declaration of the
result.
Register of Day-to-day accounts
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To maintain Day to Day Accounts of election
expense ( Part-A), Cash Register and Bank Register
(Part- B and Part- C) given by the RO
The bills and voucher nos. to be duly serial
numbered and to be lodged with DEO
The register along with bank passbook to be
produced before Exp. Observer for inspection
After inspection, the register to be photocopied and
displayed on notice board and scanned copies
uploaded to CEO website
Any public can get the copy of the register after
inspection on payment of Re.1/- per page
Meetings with DEO and RO
DEO will hold a meeting within 3 days of
announcement of election with Political
Parties to discuss the legal provisions and
expenditure monitoring measures and to
finalize the rates of items of expenditure.
 Facilitation training of candidates and
election agents on expenditure monitoring
will be done on the day of allotment of
symbols.
 Facilitation training of all candidates
/election agents before one week of
submission of final accounts.

New Mechanism for
Monitoring of Election Expenditure
The Expenditure Monitoring Teams
Measures for Expenditure Monitoring
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Identification of Expenditure Sensitive
Pockets (ESPs) and Constituencies (ESCs)
prone to high election expenditure on the
basis of past history, profile of the
constituency and other Developments.
The Expenditure monitoring mechanism will
be further strengthened suitably in these
constituencies.
24X7 Call Centre and Complaint
Monitoring System for each district
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1800-111-400 Toll Free 24*7 Call Centre at CEO Delhi
office.
1950 - An All India Toll free single number 24X7 Call
Centre to receive complaints related to electoral roll.
District Level Complaint Monitoring Cell with toll free
number to work 24 x 7 to receive complaints and monitor
action on all complaints
The telephone numbers of Expenditure Observer/
Assistant Expenditure Observers to be advertised
A complaint monitoring cell with toll free number by
Income tax Department
All calls made to the call centres shall be recorded for
future verification.
Flying Squads and static Surveillance Teams

Flying squads (FS) to become operational from announcement of
election.

FS for each Constituency with one executive magistrate, one police
officer and 3 - 4 Police Officials and one videographer to take
action against all complaints

Static Surveillance Teams (SST) to become operational from date
decided by Commission or date of notification of election.

SST and videographer to put check posts on major arterial roads.
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This will be supervised by the SPs, Expenditure Observers.
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I.G. Level Police Officer to supervise the surveillance activities of
Police and send report to Commission
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In ESC, Police Observers from outside the state will be sent
Procedures of seizure of illegal items
Criminality is determined if:
Banner/poster/
Arms or illicit
Cash(more than
items along with cash 50,000) in custody of
voter slip/any
any candidate /
campaign material or gift ( more than Rs.
10,000)
along with cash or gift
Agent/ party official
being carried in a
vehicle or any
other modus
operandi leading to
crime
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Procedures of seizure of illegal items
Utmost care to ensure all politeness,
decency and courtesy
Seizure has to be
done with proper
Panchnama/
Acknowledgement
The authority FIR to be lodged Copy forwarded to
whom to appeal
and also put in
SP, DEO, Exp.
and procedure notice board of
Observer, Nodal
for appeal must
RO.
Officer of Police
be mentioned in
and Police
the seizure order
Observer (If any)
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Accounting Team for each
constituency

Accounting
Team
to
maintain
shadow
Observation Register and folder of evidence
for each candidate. Copy of DVD can be given to
public after inspection

To compile the reports received from all
expenditure teams and enter in Shadow
Observation register on the same day

Expenditure Observer to intimate to candidate
the excess observed expense during inspection
Media Certification and Monitoring Team
 For each RO, a team headed by Deputy DEO and
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District PRO & Staff and one nominee of Press
Council of India to monitor print and electronic
media and Paid News.
In ‘Paid News’, the candidate to be issued notice
within 96 hours by RO for not accounting the
expenses and PCI informed about the Print media
involved
To submit daily report to the Accounting Team with
respect to media advertisement expenditure by the
Candidate.
It will report to DEO and General Observer
regarding any MCC violation
INSPECTION OF ACCOUNTS OF ELECTION
EXPENDITURE
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Candidates to produce their accounts for Inspection 3
times or more before the Expenditure Observer
The RO to notify 3 dates & timing well in advance in
consultation with EO for inspection of election expenditure
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 HOUSE between
10AM to 5PM,
Publicity has to be given about the contact number of EO
and time of inspection,
INSPECTION OF ACCOUNTS
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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,
Photocopy of the accounts maintained by the
candidates to be obtained after each inspection and RO
to display a copy on the notice board
Any public can get a copy by depositing Re 1/Scanned copy of register to be put in website of CEO
after inspection
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Inspection of Accounts
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In case of discrepancy found during inspection,
notice to be issued by the R.O. within 24 hours.
Candidate to reply within 48 hours.
If candidate fails to reply then the disputed amount is
taken as final
In case the candidate accepts, the same shall be added
to his expense
If candidate fails to produce the accounts in spite of
notice and failure continues the permission for
campaign vehicle to be withdrawn.
District Expenditure Monitoring
Committee (DEMC)
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In case the candidate disputes, the matter shall be decided
by DEMC consisting of EO, DEO, Dy DEO within 72 hrs
in writing and a copy will be issued to the candidate
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After submission of final accounts, if any item of expenditure
incurred after inspection is not shown correctly in his
account, DEO to issue notice within 24 hours
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The candidate to reply within 48 hours.
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DEMC to take a decision considering the reply
Other measures of Expenditure Monitoring
Mechanism
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Bank reports of Cash withdrawal above Rs. 10
lakh.
FIU to send Suspicious cash withdrawal report to
Income tax Deptt. on real time basis.
The Directorate of Revenue Intelligence will keep
watch on International Airports and Enforcement
Directorate on cash movement and report
suspicious instances
BSF and SSB to keep greater vigil on border.
Appeal by DEO to political parties, candidates
and public not to carry large sum of cash.
Star Campaigner
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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 (Allied party leaders not allowed exemption)
If the Star campaigner travels with candidate, then 50%
of the travel expense will be added to the candidate
Exemption of travel expenses: If any attendant, Security
Guard, Medical attendant, any representative of electronic/
print media 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
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
Star Campaigners
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All Passengers going by private aircrafts and
helicopters will be frisked both in airports and
airstrips (non - commercial).
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 DM for security purpose. (Permission
required)
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.
Rally expenses
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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
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 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 declaration from the
publisher to be sent by the printer to CEO or DEO)
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Monitoring of vehicles
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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
Monitoring of Barricades and Rostrums
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DEO/RO to notify the local rates of construction
of pandals or hiring of vehicles and other
expenses, in consultation with the political
parties before notification.
If the candidate or party feels that the rates are
excessive, they may take up with the DEO
immediately after notification of such rates
If a group of candidates are present in the
rally or meeting, the expenses to be
apportioned amongst all
Other Instructions
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If candidate attends a community kitchen, during
election campaign, (other than those organised by
religious communities and normal ceremonies like
marriage etc,) the entire expenditure will be added as
his election expenditure
If the vehicle permitted to any candidate is found
carrying campaign material of another candidate or
being used for campaign for any other candidate, the
entire expenditure on the vehicle from the date of
permission will be added to the candidate and
permission will be withdrawn
Other Monitoring Measures
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Daily Production, Distribution and Off take of liquor
in the state is to be monitored and close watch over
inter state border
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The bookings of marriage halls and Mandaps to be
monitored
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Distribution of gift items and cash coupons to be
closely monitored
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Unusual cash deposit/ withdrawal in account of SHGs
and NGOs
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Disbursal of wages under ongoing Government schemes
only in presence of Government officials during
elections
Lodging of Accounts of election expenses
Candidates to lodge their accounts of election expenses with
the DEO within 30 days of declaration of result along with
the register of election expenses (Under Sec78 of the RP
Act,1951)
 Documents required to be filed:
1. Revised Abstract statement (with all schedules) signed by
the candidate
2. Copy of Bank statement
3. Affidavit signed by the candidate
4. Register of Day-to-day Accounts with all bills and vouchers
in original
5. Copies of expenditure related notices issued by RO and
replies to such notices
6. Replies to discrepancies pointed out at the time of
inspection
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Consequences of Defective return or
late return
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Disqualification under section 10A of RP Act, 1951
For late filing without good reasons,
For not filing in format prescribed,
For not submitting true and correct
accounts.
Affidavit of asset and Liability
To file Affidavit of criminal cases and Asset and
Liability at the time of nomination as per revised
format
 No column to be left blank as per recent SC
judgment
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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
 Assets and Liabilities, investments, bank accounts
outside India should also be included.
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Returns by Political Parties
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Political Parties to file their statement of election
expenses with the commission within 75 days of
Assembly election and 90 days for Parliamentary
election.
Political parties are also required to file with the
Commission the list of donations in excess of Rs
20,000/- with names and address of donors (Under
Sec 29C of the RP Act,1951).
Political Parties are also required to file their Annual
Audited Accounts with the Income Tax Department
(Sec 139 of Income Tax Act, 1961) before 30th Sept.
TELEFAX NO. / E-MAIL ID FOR REPORTING

Sh. Avinash Kumar, Under Secretary (EE Div.)
- Tel: 011 23052055, 9868911976 avinash.kr@eci.gov.in .

Sh. Malay Mallick, Under Secretary (EE Div.)
- Tel: 011 23052058, 9868113451

Sh. S.K. Rudola, Secretary , Fax: 011- 23052049, 9013308437
(e-mail:

malay.mallick@eci.gov.in .
skrudola@eci.gov.in)
Sh. B. B. Garg, Jt. Director, Fax: 011- 23052003, 08130920555
(e-mail:
bbgarg@eci.gov.in)
In case of urgency:
Sh. P. K. Dash, DG (Exp.) Tel. 011 23356025, Fax: 011- 23318506,
09868301742
e-mail:prasana.dash@eci.gov.in,
prasanadash@gmail.com
Nirvachan Sadan, Ashoka Road, New Delhi-01
Pledge

I do swear in the name of God / do affirm
that

I shall uphold the purity of election process,
and
make all efforts to curb the pernicious
effects of Money power and Muscle power,
and

I shall cooperate with the Commission in
conduct of free, fair and clean elections
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THANK YOU
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