Money Power in Elections
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 the strong.
Mahatma Gandhi
Money Power in Elections
Without Money, Multi-party democracy cannot function
Risks of Money Power:
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Uneven Playing field and lack of fair competition
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Political Exclusion – Certain sectors face disadvantage
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Co-Opted politicians under campaign debts
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Tainted Governance and Rule of Law undermined
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Foreign funding may destabilise the Polity
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Types of election expenditure
Election expenditure can be classified into
two types on the basis of legal provisions
Expenditure permissible
under the law [ public
meetings, posters, banners,
vehicle, Advertisement etc.]
Expenditure incurred is to
be within the ceiling
prescribed by law
Illegal election expenditure
[Distribution of money, liquor
or any other item among
electors with the purpose of
influencing them]
Such type of expenditure is
not reflected in the account
of election expenses of the
candidate
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Innovative methods
• As per ADR reports, 80% of candidates show
expenditure up to 50% of the ceiling
• Cash expenditure for bribe to voters
( Morning news paper, milk pouch, roof top of bus,
door panel of car, bonnet of car, ambulance, police van,
helicopter, Adatiyas, Pawn Broker, SHG and NGO,
Community feast, Liquor and drugs)
• Paid News and media advertisements
Bihar Experience
• Paid News cases 121 cases and about 14 cases
reported to PCI
• No violence
• Higher Turn out
Recent experience
• Tamil Nadu: 8 Writ petitions and Counter petitions by
Civil Socirty organisations
Total seizure of cash and goods Rs. 60 cr
Punjab and UP:
Cash seizure Rs.12.13 cr in Punjab
and Rs 37.46 cr in UP,
Liquor and drugs:
In Punjab: liquor 3.57 lakh litre, Heroin 53.50 kg
(3.79 kg smack,102.94 kg opium,2702.6 kg poppy
husk,22.80 kg drug powder )
In UP: liquor 3.56 lakh litre
Paid News Cases in UP & Punjab
• In UP 42 cases of suspected paid news were
reported.
• In Punjab 523 cases of suspected paid news
were reported.
Jharkhand RS election
Judgment of Jharkhand High Court:
“….it is the only step of such great
consequence taken by the ECI after
independence of our country
and in our opinion, the decision is fully
supported by reason and based upon cogent and
trustworthy evidence, though limited to purpose,
so as to not to give chance to any person to
enjoy high status of being member of
parliament.”
New Strategies:
Election Expenditure Monitoring
in Recent Assembly elections
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Change the Out-dated
Procedures (COP)
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Rationalise the ceiling of Expenditure
Expenditure register formats changed
Cash register and Bank register
Source of the funds are to be mentioned
Details of notice issued and replies during
election process
• Affidavit forms changed to show
– the actual value and addition to the asset
– Last return filed and Income shown
– PAN of self, spouse with summary statement
Revisit the Legal provisions (RLP)
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Article 324 of Indian constitution
Sec 77-79 and Sec 10A of RP Act 1951
Sec 127 and 171 of IPC
Case laws
– Sivram Gowda case
– Kanwarlal Gupta case
– Common Cause case
Susceptible Area Management
(SAM)
• Expenditure Sensitive Constituencies
• More Expenditure Observers and Asst exp.
Observers
• Police Observers
• CPF in Static surveillance teams
• More Flying Squads and Video Surveillance
Teams
Capture the evidence (CTE)
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Folder of evidence
Shadow Observation Register
Videograph major events and Expenditure
Capture all media advertisements
To make the candidates aware of the expenses
during inspection
• Disclosure and Transparency
Watch out Cash (WOC)
• Separate bank account for the election expense
• Static Surveillance Teams, Flying Squads, Video
Surveillance Team
• Associating Income Tax Department and Air
Intelligence Units at Airports
• Involving BCAS for implementing frisking in airports
• FIU reports on cash withdrawal
• Cash withdrawal reports from bank
• Political Parties and leaders advised not to carry cash
in the constituency
Watch Out Media (WOM)
• Media expense constitute about 40% of illegal
expense
• MCMC in each district with PCI nominee
• Notice to candidate for any advertisement in media
• Paid News, Surrogate Advertisements, Party aligned
news
• Media to submit copies of declaration from the
candidates for the advertisements
Ear to the Ground (ETG)
• Toll free Number for receiving complaint from the
public and civil Society and Complaint Monitoring
centre in each district
• Complaint register maintained and Feed Back reports
monitored
• Toll free Number by Investigation wing of Income
Tax Deptt.
• Media report as a formal complaint complaint
• Contact Numbers of Exp. Observers advertised
• Associating the NGOs to inform malpractices
Orient the Voters (OTV)
• SVEEP for ethical voting
• Advertisement through media that the taker and
giver will be punished
• Involving college and school students to be the
agents for change and prevail over their parents
• Involving NGOs and citizen forum to spread antibribe message
• Developing slogans and cartoons against bribe to
electors
Orient the Stakeholders (OTS)
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Meeting with Political Parties
Meeting with candidates
Separate Agent for Exp. Monitoring
Training of the agents (Twice)
Meeting with Media houses
Training of the officials
Training of the law enforcement agencies
Discretion to the Executives
(DTE)
• To watch out Kalyan Mandap bookings
• To watch out community kitchens
• To oversee excess deposit or withdrawal of cash
by NGO and SHGs
• To accord permission for helicopter landing after
obtaining the passenger manifest and details of
payments for the craft
• Daily monitoring of liquor production and
distribution in the district and sealing the border
Punish the Guilty (PTG)
• Steps taken to disqualify the candidates who did
not show the correct income
• Umlesh Yadav case
• Ashok Chauhan case
• Madhu Kora case
• Jharkhand Rajyasabha election
• Action against Paid news
Issues to curb Money power
• Cash economy
• Transparency of Fund raising by Political Parties
and ceiling for Party expenditure
• Legal change for auditing by panel of auditors of
ECI and to publish annually the audited accounts
• Legal change for making Bribery a cognizable
offence
• Role of Civil Society Organisations to spread the
message among the voters
THANKS