Monitoring of Election Expenditure

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

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Objectives

• The election expenditure permitted under the law should be reflected in true and correct manner in the accounts and should be maintained in the manner prescribed by the Commission

• The election expenditure not permitted under the law is to be stopped and proper action taken under the provisions of law.

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Types of election expenditure

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Expenditure permissible under the law [ public meetings, posters, banners, vehicle etc.]

Illegal election expenditure [Distribution of money, liquor or any other item among electors with the purpose of influencing them]

Expenditure within the ceiling fixed

Such type of expenditure of election expenses of the candidate is stopped

Election expenditure can be classified into two types on the basis of legal provisions

Legal Provisions

relating to electoral offences on election expenditure

and

Consequences of violation

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Legal ProvisionsSection 77 of the Representation of the People Act, 1951 :- The candidate or his election agent has to maintain an account

of election expenses, which must be a correct account of election expenses.

(Rule 103 of Delhi Municipal Corporation Rules,2012 also emphasizes this requirement)

Section 78 of the Representation of the People Act, 1951 :- Each candidate/his election agent has to lodge an account of

election expenditure before the District Election Officer within thirty days of declaration of result.

(Rule 104 of DMC Rules,2012- within 10 days )

Rule 86 of the Conduct of Election Rules, 1961:- the Rule lays down the manner in which the candidate has to

maintain his/her account.(Rule 103 of DMC Rules,2012 also emphasizes this requirement)

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Legal Provisions (contd…)Rule 87 of the Conduct of Election Rules, 1961:- This Rule provides for the inspection of the account of

election expenses maintained by the candidate/his election agent.

Section 10 A of the Representation of the People Act, 1951 :- If the candidate/his election agent does not file the

accounts within the prescribed time and in the proper manner, the Commission can disqualify the candidate.

If the account filed by the candidate/his election agent is incorrect and untrue, the commission can disqualify the candidate.

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Legal Provisions (contd…) Rule 88 of the Conduct of Election Rules, 1961:- Any member of the public may inspect the account of

election expenses maintained by the candidate and If he desires a copy of the account, he can obtain the same at a fee of Re. 1/- per page

( Rule 107 of DMC Rules 2012 excepting Rs. 10/ as inspection charges)

Rule 89 of the Conduct of Election Rules, 1961:- After scrutiny of the account of election expenses maintained

by the candidate/his election agent, the DEO will send a report to the Commission in prescribed format. This report will also be displayed on the notice board of the DEO.

The candidate who did not lodge his account is issued a notice by the Commission, which is served on the candidate by the DEO.

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Legal Provisions (contd…)

• Under Rule 108 of the DMC Act, the Returning Officer has to report to SEC immediately after 10 days of declaration of result regarding lodging the account by the candidates in the stipualated time and prescribed manner.

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If the Commission is satisfied that there is no reason for the candidate for failure in lodging the accounts, it may disqualify the candidate for a period of three years under section 10A of the representation of people act 1951.

After considering the report of RO, SEC may disqualify a candidate for 6 years, if satisfied that the candidate has failed to lodge the account or account lodged by the candidate is not in the manner or not within the time.

{ Rule 110 of DMC( Election of Councillors) Ruels,2012}

• Before taking the decision regarding disqualification opportunity may be given to the Candidate by issuance of notice /personal hearing etc.

Legal Provisions (contd…)

Ceiling on Election Expenditure

Rule 90 of the Conduct of Election Rules, 1961:- The maximum limit for the election expenditure by the candidates is

• Ceiling for Assemly elections

• UP, Punjab–Rs.16 Lakh

• Goa, Manipur-Rs.8 Lakh

• Uttarakhand- 11 lakh

• Ceiling for Lok Sabha- 40 lakh

(Except Goa-22 lakh and Manipur-35lakh)

Other provisions of RP Act,1951• Sec.127A makes it mandatory on all the Press

and media not to print or publish or cause to be printed or published any election pamphlet or poster or other document which does not bear on the face of it the name and address of the printer or publisher, number of copies and delivers to DEO or CEO along with copy, and declaration as to identity of publisher attested by two persons.

• Penalty: imprisonment for a term up to six months or with fine Rs 2000/-

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Provisions of the Indian Penal Code, 1860 :- 171 B – Bribery – Any person giving or accepting

gratification to induce a person to exercise his electoral right would commit the offence of bribery.

Gratification – Offering gratification, agreeing to give gratification, attempting to procure gratification shall be deemed as giving gratification.

171 E –Punishment for bribery – one year imprisonment or fine or 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 – Punishment - one year imprisonment or fine or both.

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Legal Provisions (contd…)

171 H – Illegal payments in connection with an election – Expenditure done by any person/ organization for a candidate without his written permission would be considered illegal whether the expenditure is in relation to a public meeting, advertisements, publication or in any other way.

Punishment – A fine up to rupees five hundred.

But if a person who incurred an expenditure [which is not more than a total of 10 rupees] in favour of the candidate without his authority i.e. without his written permission, obtains a written approval from the candidate within 10 days of the date on which the expenditure was made, it would be construed as if the expenditure was done under the authority given by the candidate. 14

Legal Provisions (contd…)

171 I – Failure to keep election accounts – If the candidate does not maintain an account of his election expenditure in the manner specified.

Punishment – A fine up to rupees 500.

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Legal Provisions (contd…)

• 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

New mechanism for

Election Expenditure Monitoring in Assembly elections (Punjab, Uttarakhand, UttarPradesh, Manipur and Goa)

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Preventive measures

Appeal to Political Parties: I. To exercise self restraintII. To avoid transactions in cash during the election processIII. To advise their party functionaries,

candidates and agents not to carry huge cash in the constituency during election process

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Preventive Measures• Candidates to open separate bank account for election

expenses, with any bank or Post office• To incur all expenses by crossed A/c payee cheque, if

payment to a single party during election process exceeds Rs.20,000/-

• To submit certified Copy of the bank account along with the expenditure statements within 30 days of declaration of the result

• Bank Account can be opened in joint name with the agent, anywhere in the state

• Existing bank account should not be used• DEO shall issue suitable instruction to the Banks and Post

offices to open dedicated counters for election purpose for prompt service

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Preventive Measures

• DEO to involve NYKs, RWAs, Senior citizen forum to educate the public and to advertise the tel. Number of complaint monitoring cell

• Creating awareness among voters through public media campaign for ethical voting

• Orientation Training for Political Parties and candidates both by CEOs and DEOs on the laws and rules of election expenditure

• Identification of Expenditure Sensitive Constituencies ( ESC) prone to high election expenditure and corrupt practices on the basis of past history, profile of the constituency and other Developments

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New Expenditure Monitoring Machinery

• Expenditure Observer

• Asst. Expenditure Observer

• Flying Squad and Static Surveillance Teams

• Video Surveillance Team

• Video Viewing Team

• Media Certification and Monitoring Committee

• Accounting Team

• Associating Income Tax Department

• Liquor monitoring Team21

Expenditure Observer To be appointed by the Commission.

Expenditure Observers are eyes and ears of the Commission Responsible for overall supervision of expenditure monitoring

for two or more Assembly segments. He will appoint Asst. Expenditure Observers for each

constituency out of the list provided by DEO He will train the Asst. Expenditure Observers and inspect

functioning of different teams engaged in expenditure monitoring in each constituency

He will coordinate with various law enforcement agencies of Income tax, Police, BSF/SSB, State Excise and DRI

He will assist the DEO in preparation of scrutiny report

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Visit of Expenditure Observer

First visit: He would arrive within one day after the notification in the constituency and would remain in the constituency till the end of poll.

Second Visit: He would visit once again after 30 days of the declaration of result to assist the DEO in scrutiny of account of election expenditure, submitted by the candidates. He will stay till completion of scrutiny of accounts by DEO.

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Reports by Expenditure Observer

• Arrival and Departure report within 24 hrs (Annex-2)

• First report within 24 hours of Scrutiny of Nominations (Annex-3)

• Second Report within 24 hrs of poll/ Repoll (Annex-4)

• Third Report within 45 days of declaration of result (Annex-5)

• Report of seizure of any item by any team in the constituency on the same day

• Report of Paid News on the same day

• Report of any gross expenditure/ corrupt practice which warrants postponement of poll on the same day

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Inspection of Accounts• RO gives the Register in new format with its three

parts i.e. Day to day accounts, Cash and Bank Register

• Ensures that copy of the ECI’s new Instruction on expenditure monitoring is issued to the candidates and all the teams are trained as per the new Instruction

• RO notifies 3 dates well in advance for his inspection of accounts maintained by the candidates

• 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

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Inspection of Accounts• 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 his contact number and time of inspection

• The Asst. Expenditure Observer to be present with Shadow Observation Register and folder of evidence

• Inspection to be done by Expenditure Observer only and where he is not available for inspection, the reasons should be intimated to the Commission

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Inspection of Accounts

• He will record in writing in the register maintained by the candidate the details of excess expenditure, if any, as per the evidences gathered by various teams and obtain a photocopy of the register of candidates

• Commission considers the comments of Expenditure Observer in the register at the time of disqualification proceedings

• He will also get the signature of the candidate or his agent on the Shadow Observation Register

• Instances of Paid News will also be noted in the register and report along with copies of such news to be sent to Commission

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Inspection of Accounts• RO to issue notice to candidate on the same day on

all such discrepancies and also on Paid News

• He will obtain a photocopy of the accounts maintained by the candidates after his signature and RO will display a copy on the notice board

• Notice to be issued to candidate in case of failure to lodge accounts for inspection and FIR to be filed if failure continues (Sec 171I 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

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Supervision of the Teams• He will supervise the functioning of various teams engaged

in Expenditure Monitoring and also the functioning of Assistant Expenditure Observer

• If he is not satisfied with the functioning of any of the team or the Asst. Expenditure Observer, he will ask the DEO to change such official and DEO will provide the substitute

• He will ensure that DEO provides the teams with the necessary logistics. In case of any deficiency he will bring it to the notice of DEO

• In ESC, he may require more number of Asst. Expenditure Observers or Flying squads or static surveillance teams. DEO or SP will provide such manpower

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Supervision of the Teams

• He has to ensure that major roads are covered under Static Surveillance and also surprise element is maintained in their timing and placement

• Surveillance to be strengthened vigorously before a week of poll

• He may have the coordination meeting with all law enforcement agencies of the district for smooth functioning of the teams and flow of information

• In ESC, due diligence and alertness is required on movement of suspicious persons in the constituency

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Assistant Expenditure ObserverAt least one Asst. Expenditure observer for each Assembly segment.

Assistant Expenditure Observers will be from Central Govt., preferably from Income Tax, Central Excise, Audit and Accounts or Central PSUs.

They will be of the rank of ITO or Group B Officers. Assistant Expenditure Observers are appointed from the list

provided by DEO and trained by the Expenditure Observer. The Assistant Exp. observer will tour extensively in the

Assembly Constituency and make an assessment of the election expenditure of the candidate.

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Assistant Expenditure Observer Assistant Expenditure Observer will supervise and

ensure action on all complaints in relation to election expenses of the candidate of his jurisdiction.

He will be responsible for maintenance of Shadow Observation Register and folder of evidence.

He will assist the Expenditure Observer during inspection of accounts.

He will report to the Expenditure Observer. He would assist the Expenditure Observer and the

DEO in scrutiny of the account election expenses submitted after the declaration of result.

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Video Surveillance Team (VST)

Each Assembly segment would have at least one video surveillance team. In case of ESC there may be more teams. On days when there are more public meetings, there may be more teams.

Each team will consist of minimum one official, one videographer and a vehicle.

The team should be properly trained and oriented to capture all MCC relevant events and expenditure related evidences.

At the beginning of shooting, the team will record in voice mode the title and type of event , date, place and the name of the party or the candidate organizing the same.

Video Surveillance Team (VST)Each team consisting of one official and one videographer It will capture the photo in such a way that the evidence of each

vehicle, furniture, rostrum, banner, cutout etc. can be seen clearly and the expense thereon can be estimated.

At the end of shooting, the team may also record in voice mode the estimated number and type of vehicles, chairs, furniture, approx size of rostrum/banner/poster/cutout etc. used in the event.

This team will prepare a video cue-sheet in the format given at Annexure-7 of the instructions. This cue-sheet contains the highlights of the recording with date and time. Therefore it should be ensured by the team that the time and date set up in the camera is correct.

This team will submit the recorded CD and cue-sheet to the Video Viewing Team.

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Video Viewing Team (VVT)

There shall be an independent and separate VVT for each Assembly segment.

Each team would consist of one officer and two clerks. The video CD captured by the VST shall be viewed by the VVT

daily for identifying expenditure related issues and MCC related issues.

They will submit, on the same day and in any case, not later than the next day, their reports related to expenditure to the Accounting Team/Asst. Exp. Observer.

The report shall contain candidate wise expenditure on public rally including the vehicle numbers, number of chairs, size of Dias, audio system, posters , banners, helicopter expense, media advertisements and Paid News, names of candidates

Any MCC related report/observation should be submitted to the General Observer/RO by this team.

Accounting Team

There shall be at least one Accounting Team for each Assembly segment.

Each Accounting Team would consist of one official and one assistant/clerk.

The employees of the accounts wing of Central and State Government departments and PSUs would be drafted for this purpose.

The Accounting Team shall work under the guidance of Assistant Expenditure Observer in maintaining the Shadow Observation Register with Folder of Evidence.

They will put the rates against each item of expenditure reported by various teams and calculate the total expenditure of the event observed for each candidate.

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Media Certification and Monitoring Committee (MCMC)

The Media Certification and Monitoring Committee in each district comprising of Dy. DEO, District Public Relations Officer and his staff, central Govt. I & B official (if any) and one nominee of Press Council of India. Besides certifying the advertisement proposals of the candidate it

will monitor advertisement in both print and electronic media including Radio, Bulk SMS and cable network for advertisements and instances of Paid News in the media from the date of announcement of election.

They will be given infrastructure like 3 or 4 TVs, all news papers including local news papers and all cable connections in a separate room and they will operate 24x7.

It will submit a daily report, in the format given at Annexure-12 of the instruction of the ECI, to the Accounting Team with supporting documents/materials such as Newspaper cuttings, TV recording clips.

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Flying Squads (FS)

Flying squads to check illegal election expenditure and to attend to complaints relating to expenditure and MCC.

Flying Squad will be constituted at Sub-division Level/ constituency level with Executive Magistrate as head, one Police Officer and 3-4 police personnel and one videographer. They will be provided a vehicle, moblie phone, one videographer and Panchnama documents required for seizure.

More number of Flying Squads may be formed depending on the requirements of terrain of the Sub-Division, distribution of the Constituencies in the Sub-Division, number of complaints in each Sub-Division, availability of manpower and recommendation of the Expenditure Observer/ Police Observer.

The Flying Squad will be exclusively for election purpose and will not be given any other work 38

Flying Squad This squad will :– attend to all the complaints of Election Expenditure violation in

addition to MCC complaints in that constituency or subdivision. (District level Expenditure Monitoring Control room and Call Centre shall forward the complaints along with the Telephone Number / Mobile Number of the complainant received either directly or through CEO Office)

– take necessary action immediately on receipt of the complaints. Wherever it is not possible to reach the spot within half an hour, the Flying Squad will either direct the Static Team or the local SHO to take necessary action immediately and will monitor the action taken by such officials and obtain the Action Taken report.

– The entire action taken on the ground by Flying Squad or Static Team or by SHO should be video graphed and the complainant should be contacted in case of any doubt or further clarification on the complaint.

Flying Squad The Flying Squads will report the action taken to District Control

Room /Call Centre and forward Daily Activity Report (Annexure-8) to S.P and DEO with copy to Expenditure Observer.

The Flying Squad/Static Team may consider seizure of cash/other items under provision of CrPC/IPC, wherever they suspect that end use of the same is for criminal purpose and shall deposit the cash in treasury as per direction of the Court.

If no criminality is suspected, the Officials of the Income Tax department deputed for the purpose in the district should be informed immediately in order to facilitate them in interrogating the person under Income Tax Laws.

In cases where the court directs the release of the cash, the officials of Income Tax deptt. shall be informed well in advance. IT Officials may seize the cash, if the amount is not disclosed under Income Tax Laws.

Static Surveillance Teams (SST)• The Static Teams shall be formed under each Police Station

comprising of 2-3 Police personnel and one videographer.• Static Team will start operation from the date of the press

announcement of election and will operate till day of poll in the Constituency.

• They will be responsible for putting the check post on major road/arterial road to check any movement of illegal cash/liquor/arms or large volume of gift items meant for distribution among voters.

• There should be surprise elements in putting the check posts so that one can not anticipate about its placement. The Flying Squad of the district will supervise the posting of the Static Team/Check Post in such a way to avoid repetitive checking of the same passenger / vehicle or to avoid two check posts on the same road.

Static Surveillance Teams

The entire activity at the check post should be video graphed and the DVD handed over to Expenditure Observer, for keeping in `folder of evidence`.

Any member of public may ask and take copy the Video DVD/CD for a particular day by depositing Rs. 300/-.

It will submit a Daily Activity report in prescribed format (Annexure-9) to SP, RO and Assistant Expenditure Observer

The Nodal Officer at Police Headquarters at State level will compile the Daily Activity reports of Flying Squads and Surveillance Team and send to the CEO and Commission.

Standard Operating Procedure (SOP)

• Flying Squad will supervise operation by Static surveillance teams and law and order issues arising out of the operation

• Flying Squad will be in constant touch with officials of Income Tax Deptt., State Excise Deptt and pass on information of cash, liquor, gift items found by them

• Flying Squad or Static Surveillance Team will seize cash or other items under CrPC/ IPC, if criminality is suspected

SOP• Criminality is determined if:

I. They find banner/poster/voterslip/any campaign material along with cash or gift

II. Arms or illicit items found along with cash or giftIII. Cash is found in custody of any party official or

candidate or his agents or any other modus operandi leading to crime

• Utmost care to ensure all politeness, decency and courtesy• Seizure has to be done with proper Panch nama/ Acknowledgement

and the authority whom to appeal and procedure for appeal must be mentioned in the seizure order

• FIR to be lodged and also put in notice board of RO. Copy forwarded to SP, DEO, Exp. Observer, Nodal Officer of Police and Police Observer (If any)

SOP• Seized Cash is to be deposited in Treasury or in such

manner as directed by the court• DEO to issue necessary instructions to Treasury units to

receive cash beyond office hours and on holidays• If person carrying cash produces proper documents as

regards its source or its end-use or the cash is being carried for some emergency purpose, then seizure will not be effected after retaining copies of the documents produced. Commission may call for the documents in future

• Operation by FS or SST will be videographed and voice recording of the name of person, address, and amount of cash carried by him

• Video to be submitted to Accounting team along with Video Cue Sheet to be kept in Folder of evidence.

SOP

• If the seized cash is to be released as per order of the court, Asst. Director in charge of the district is to be informed before release, so that they may take action under sec 132A for seizure under IT Act.

• If no criminality is suspected and the cash exceeds Rs. 1 lakh, the Officials of Income Tax deputed shall be informed and the person is interrogated till arrival of the official

SOP for IT Deptt. for seizure• Investigation Directorate will deploy one Asst. Director and two

inspectors in each district after announcement of elections• In ESCs there may be more Asst. Exp. Observers and 4 or 5

Inspectors• List of officers/ officials deployed with mobile and fax no. to be

given to DEO and CEO• DEO to provide accommodation and vehicle to such teams• The flying Squad and security to be made available to Asst. Director,

when any operation is planned• The IT officials will collect local intelligence on movement of cash

and also will reach the places where cash is found by SST or FS.• If IT officials decides to deposit the cash in challan, then the

security of FS to be provided to deposit the cash in designated bank and challan handed over to person from whom cash was found

• When it is not possible to deposit the cash on the same day for bank holiday, treasury will keep the cash on joint signature in sealed cover, till it is deposited in the bank.

SOP for IT Deptt seizure

• If large scale availability of cash is suspected on the basis of intelligence or the person does not explain satisfactorily to FS or SST about the cash found in his possesion, search and seizure operation to be conducted by IT deptt both at office and residence.

• Person from whom cash or any valuable item is seized is given copy of Panchnama and name and address of authority to appeal

SOP for IT Deptt• IT Deptt. will open Air Intelligence Units in all airports

of the poll bound states and also shall keep vigil over movement of cash through aircrafts/ helicopters leading to poll bound states

• If any cash exceeding Rs. 10 lakh is detected in the airport, the IT Deptt will seize the amount. CISF will extend necessary help.

• If it is not possible to seize the amount under IT laws, then the IT Deptt will pass on the information to CEO of the poll going state to consider seizure by FS

• IT Deptt. will keep vigil over movement of cash through Hotels, Farm Houses and collect daily information from them. If any movement of large sum of cash is suspected then IT will take steps to seize the same

SOP for IT Deptt• IT Deptt will keep vigil over the financial brokers, Pawn

brokers, Hawala Operators in poll bound states• If any information about distribution of cash or gift

items is received by them, they will pass on information to the FS

• If complaint about large scale cash in a business premise or residence is received, necessary steps will be taken with the help of police and FS. DEO to provide all security. Secrecy of the destination is to be maintained and within half an hour of strike, DEO and CEO to be informed

• If large amount of bank withdrawal is reported by DEO, the IT deptt. will take necessary survey or search under IT laws

• Activity Report to be sent by Asst/Dy Director every alternate day and DGIT to compile and send to Commission with copy to CEO (ANNEX-24)

Verification by IT Deptt• The DGIT (Inv) will open a 24x7 call centre with toll

free number to receive complaints from public and advertise the number

• All complaints and action taken will be recorded for future inspection by commission

• The Directorate may investigate the case independently, if large amount of cash or gift items are suspected and DEO will provide security required

• Other complaints involving small amounts are to be passed on to the District Complaint monitoring cell

• FIU to send suspicious transaction reports on the candidates and others

• DEO will pass on report of large sum cash withdrawal from bank for verification by IT Deptt., which will be investigated by the Investigation Directorate

Verification by IT Deptt

• IT Deptt. will obtain the list of registered pol. Parties and report to Commission within 2 weeks of announcement of election, about the parties, raising donations and not filing IT returns

• Investigation Directorate will download the affidavits of the candidates, verify the assets and report to commission within 6 months from the date of poll about any suppression of asset or liability in the affidavit

• IT Deptt. will pass on information about any election expenses, gathered during their investigation even after the election

Monitoring production, storage and distribution of liquor

• From the date of announcement of election, the production, off-take, stock limits of stockists and retailers of IMFL/Beer/country liquor are to be monitored district wise

• Opening and closing of liquor vending shops are to closely monitored

• Intensive vigil over inter state movement of vehicles at RTO check-posts and border check-posts by special enforcement staff of Excise Deptt.

• To conduct raids to seize illicit liquor• Inter state coordination of Excise Commissioners of the

bordering states• District level Nodal Officer to submit report every

alternate day to DEO, Exp. Observer and State Level Nodal Officer, who will compile the state level report to Commission and CEO (Annex.22)

DEO’s Appeal in Media in local language

DEO will publish the following appeal in the local newspapers in the language of the state :-

Appeal for general public during electionsDistribution of cash, liquor or any other item for gratification of

voters is bribery and both the giver and the receiver is a punishable under Indian Penal Code. Flying Squads have been formed under each Police Station to keep watch over distribution of cash, liquor and other items in the constituencies during the election.

It is appealed to all that anybody carrying huge amount of cash in any Constituency during the elections should carry proper documents like bank withdrawal slip, passbook, copy of PAN, bills and vouchers etc. to show the source and documents like medical bills, marriage cards, bills and vouchers etc. to show end-use of such cash in order to avoid seizure by the Flying Squads.

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Expenditure Monitoring Control Room and Call Centre

It will function 24/7 Toll Free Call Centre to receive complaints at district level and telephone number would be widely publicized Complaint monitoring centre for communication with various teams to operate from the date of press notification. A senior officer will be put in charge of the call center and there will be sufficient staff to man the telephone lines.All expenditure related complaints will be immediately forwarded to Flying Squad or officer concerned with sms to RO, Asst. Exp. Observer and Expenditure Observer In all MCC related complaints will be forwarded to RO with copy to General Observer. Daily Action Report to be submitted as per Annexure 13 to the ROAll the calls would be recorded for future confirmation.

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Expenditure Monitoring Cell 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 the teams engaged in expenditure monitoring. It will be responsible for expenditure monitoring efforts on behalf of DEO in the district coordination with various teams, providing manpower and logistical support like space and equipments.

–First and second training of the Asstt. Expenditure Observers and all the officials engaged in various teams should be done by the Nodal Officers of Expenditure Monitoring Cell of 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.

–It will assist the DEO and Expenditure Observer in finalizing the scrutiny report to be submitted after declaration of result.

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Meeting with Political Parties

• DEO will have a meeting with all recognised Political Parties within 3 days of announcement of election about the new 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

Training– The DEO will arrange two facilitation training

programmes at RO office or at his own office for all election agents/candidates through the Exp. Monitoring cell

– One, either immediately after the scrutiny of nomination or after withdrawal of nomination 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 ( 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.

New Procedures for

Election Expenditure Monitoring

Modified Proforma of Register• The Day to Day Accounts of Election Expenses are to be

maintained by the candidates as per register (Annexure-14) having three parts:

• Register of Day to Day Accounts in Part-A

• Cash Register in Part-B (pink pages)

• Bank Register in Part –C (yellow pages) All expenses authorised or incurred are to be entered in Part-A

including materials received in kind from the party or any

other person All cash to be deposited first in the bank account All expenses excepting payments upto Rs.20,000/- to a single

party through out the campaign to be done by cheque Sources of fund are also to be mentioned

Notification of rates for assessment of Expenditure

1. After consulting with all the parties, the DEO shall notify the local rates of various items of election expenditure for his district within three days of announcement of elections This has to be done before filing of the nomination papers in any case.

2. It should be made clear in the notification that election expenses of every candidate would be assessed on the basis of these rates.

3. The list of these rates would be given by the RO to the candidates at the time of filing of nomination papers.

4. 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.

5. Any objection by the candidate regarding the quantum of such rates has to be made to the DEO within 24 hours of notification.

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Notification of rates for assessment of Expenditure

The notified rates should include hiring charges of:

Loudspeaker with amplifier and microphone,

podium or Pandal of standard sizes,

Cloth banner, Cloth flags, Hand bills, Posters,

Hoardings, Cut outs (wooden), Cut outs (Cloth/plastic),

Video Cassettes/CDs, Audio Cassettes/CDs,

Daily hiring charges of vehicles (all types of vehicles),

hiring charges of chairs, tables and other furniture and electrical fittings/equipments,

Print media advertisements and DAVP rates

Audio slots on Radio, Audio-visual slots on TV, cable TV, State level TV channels and National Level TV Channels

Any other item commonly used in a district. 62

Inspection of Expenditure Register (contd…)

1. The RO will prepare a schedule for inspection of expenditure register by the Observer, or a senior officer designated by the RO for the purpose of each candidate.

2. This notice should be given the widest possible publicity. If in spite of the notice the candidate fails to produce the register of election expenditure for inspection, a complaint under Section 171(I) of IPC should be filed in the competent Court.

3. Publicity should also be given that members of the public can be present during inspection of expenditure registers and that anybody can obtain a copy of the expenditure register of any candidate on payment of Rs.1 per page from the RO.

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Shadow Observation Register

1. The Shadow Observation Register for each candidate shall be maintained by the Accounting team under guidance of Asst. Exp. Observer in prescribed format. Each page numbered and signed by Exp. Observer.( Annex.11)

2. The Accounting Teams shall receive the reports and other information from Video Viewing Team, Media Expenditure Monitoring Team, Surveillance Team for tracking of illegal cash transaction, Call Centre, Control Room and other sources along with evidences, if any.

3. The Asst. Exp. Observer will daily inspect the Shadow Observation Register and ensure that no such expenditure as reported is left out of inclusion in the register.

4. If an expenditure not permitted under the law is found to be made by the candidate, it would also be included in the register and proper action taken under relevant legal provisions as well.

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Shadow observation register and folder of evidence

• This register will be made available to the Expenditure Observer at the time of inspection.

• Folder of evidence shall contain all reports, DVDs and CDs, evidences, orders, instances of paid news, FIRs, notices issued and rate charts etc.

• During inspection if the amount mentioned in the shadow observation register is found to be more than the amount shown by the candidate, then the signature of the candidate or agent is to be obtained on the shadow observation register and RO to issue notice.

• The RO shall issue notice to the candidate for clarification/ explanation regarding the expenditure suppressed as per the Shadow Observation Register and will also display a copy of it on the notice board. The reply of the candidate would also be displayed on the notice board. The notice and/or reply can be obtained by any person at a fee of 1 rupee per page.

Folder of Evidence• The evidences in relation to the expenditure included in the register

would be kept in a folder of evidences and each evidence would be cross referenced with the corresponding entry in the Shadow Observation register.

• The Shadow Observation Register would be shown to the candidate at the time of inspection of his register and he would be asked to sign on it with his comments, if any, as a proof of having seen the register.

• If the candidate or any other person desires, he may obtain the copy of Shadow observation Register or documents maintained in the folder of evidence @ 1 rupee per page or @ rupees 300/- per CD after the time of inspection. The evidences shall pertain only to the date up to which the inspection is being made.

• All reference to Folder of evidence are clearly mentioned in SOR, which is properly signed and page-numbered by Asst. Exp. Observer or Exp. Observer.

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Public Meetings, Rallies, etc.

1. The candidate would submit an expenditure plan to the RO in a format given at Annexure-16 at the time of applying for permission of public meetings, rallies, etc. It shall contain the expenditure estimated to be incurred on the event by the candidate.

2. A copy of the expenditure plan received from the candidate will be given to the Video Surveillance Team which will enter the actual expenditure observed to be incurred during the event.

3. The video surveillance team and accounting team will make note of the expense, observed.

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Public Meetings and rallies

• All major public rallies and Public meetings 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

Monitoring of campaign through Print/Electronic media, including cable network & FM channels

• At state level, advertisement of political nature on TV Channel, cable networks, radio, including the Private FM Channels, during the period MCC is in operation are made only after clearance from the pre-broadcasting scrutiny Committee constituted by the CEO.

• Whenever the Scrutiny Committee constituted by the CEO grants permission for any advertisement, it will forward a copy of the permission along with all expenditure details to the concerned DEO, who will include the expenditure in the shadow expenditure register.

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Monitoring of campaign through Print/Electronic media, including cable network & FM channels (contd….)

• If any surveillance team, Accounting team, MCMC or the expenditure monitoring cell finds that any such advertisement has been published/ displayed in favour of any candidate without the permission of the Scrutiny Committee constituted by CEO, he shall inform the RO immediately.

• The RO will issue a notice to the candidate for violation of instructions of the Commission.

• The DEO will also ensure that the expenditure on this advertisement is also added to the shadow expenditure register.

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Monitoring of printing of pamphlets, posters etc.

• The District Election Officer shall, within 3 days of issue of announcement of election, shall write to all printing presses and print media in their districts informing the requirements of Section 127-A of RP Act 1951.

• He would inform them that any violation would invite stern action including the revocation of the license of the printing press under the relevant laws. They should be specially instructed to: -

– Indicate clearly in the print line the names and the addresses of printer and publisher of any election pamphlets, posters, ‘news reports’ based on payments and such other material printed by them.

– Send 10 copies of the printed material and the declaration of the publisher as required under section 127(2) of R P Act 1951, within 3 days of printing.

• The DEO shall examine whether the publisher and printer have complied with the requirements of law and directions of the Commission.

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Monitoring of printing of pamphlets, posters etc. (contd…)

• One copy of the printed material shall be exhibited on his notice board so that all political parties, candidates and other interested persons may be able to check whether the requirements of law have been complied with.

• One copy forwarded to Accounting team for inclusion in Shadow Observation Register

• In all cases where there is violation of the provisions of Section 127-A of R P Act 1951, FIR is lodged and prosecutions should be initiated against the offenders.

• One Copy of printed materials should be given to the Exp. Observer for inclusion in the shadow register.

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Monitoring of use of Vehicles in electioneering

• Details of all vehicles being used by a candidate for his election campaign are required to be furnished by him to the RO before vehicles are used.

• Two-wheelers (Motorbikes, Scooters, Mopeds), Cycle Rickshaw, etc, are also vehicles for the purposes of these instructions.

• These details should be given to the accounting teams for inclusion in the shadow expenditure register.

• If a vehicle is found being used for campaigning and its details have not been communicated to the RO in advance by the candidate, it shall be considered unauthorized campaigning for the candidate and may attract penal provisions of Section 171H of the Indian Penal Code and shall therefore be immediately taken out of the campaigning exercise.

• The expenditure on this vehicle will also be added in the shadow expenditure register.

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Monitoring of use of Vehicles in electioneering

• Permission letter of RO 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 in the hands of the candidate for whom it was used

Monitoring of expenses on construction of barricades & rostrums

• If expenses on construction of barricades/ rostrums etc. are made by Government agencies on account of security considerations, it should be booked as expenditure of the candidate in whose constituency the meeting takes place.

• If a group of candidates are present at the time when the leader of a political party addresses such a meeting, the expenditure will be apportioned equally amongst them.

• The DEO shall obtain the details of expenditure from the concerned government agencies within three days of the event and intimate to the candidates their respective share of expenditure.

• This information will also be intimated to the RO and DEO of the constituency/ district if any such candidate belongs to another district.

• This information should also be given to the accounting team of respective candidates for entering in the shadow expenditure register.

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Complaint Monitoring System• Besides the call centre, the observer shall fix one hour time for

hearing of complaints every day in the office of the RO. This time will be given wide publicity. Any complaints received by the observer will be inquired into within 24 hours, and a copy of the report given to the observer and also to the accounting team.

• There shall be a counter in the office of the RO to receive complaints from the public. This counter shall remain open every day from 9 AM to 5 PM. All complaints received will be immediately given to the observer for perusal. All complaints shall be inquired into within 24 hours and copies of the report given to the Observer and the accounting team.

• 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.

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Expenditure by persons other than candidate & expenditure by political parties

• The expenditure incurred on travel of star campaigners is not deemed to be expenditure incurred or authorized by a candidate of that party.

• The expenditure incurred by the political party which can be identified with the election of a given candidate, as distinguished from expenditure on general party propaganda, would be liable to be added to the expenditure of that candidate as being impliedly authorized by the candidate (Kanwar Lal Gupta Vs. Amar Nath Chawla (A.I.R. 1975 SC 308 dated 10-04-2004).

• The travel expenses of a leader nominated as star campaigner will be accounted for in the election expenditure of the candidate where such leader happens to be himself a candidate.

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Expenditure by persons other than candidate & expenditure by political parties

• If star campaigner campaigns for a candidate of another party, the expenditure incurred on his travel would be included in the candidate’s account.

• If candidates of two or more parties are present in a campaign/meeting addressed by a star campaigner of one party, his travel expense will be apportioned equally among the candidates of other parties but exempting the share of the candidate of the same party.

• The hotel expense of the star campaigner is not exempt

• Expenditure claimed to have been made by the Political Party should be reported separately by the DEO to the CEO in the prescribed format.

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Other Instructions

• DEO shall ask all the banks to report suspicious cash withdrawal exceeding Rs. 1 lakh from any account by any person

• Cash withdrawal exceeding Rs. 10 lakh to be forwarded by DEO to Asst. Director in charge of the district for necessary verification under IT laws

• Any coupons found at the time of campaign, Asst. Director will take necessary action on the business concern whose name appears in the coupons

Other Instructions

If candidate attends a community kitchen, during election campaign, the entire expenditure will be added as his election expenditure

The bookings of marriage halls and Mandaps to be monitored

Distribution of gift items and cash coupons to be closely monitored

Unusual cash deposit/ withdrawal in account of SHGs and NGOs

Disbursal of wages under ongoing Government schemes only in presence of Government officials during elections

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Video Surveillance team

Expenditure monitoring control room

Expenditure Monitoring Cell

Media expenditure monitoring team

Accounting team

Video Viewing team

Surveillance team for tracking of illegal cash

transactions

Call Centre

DEO Expenditure Observer

RO

Public meeting/Rally Illegal Expenditure.

Assistant Expenditure Observer

Requirements at the time of filing of accounts• Candidates are required to lodge their accounts of election

expenses with the DEO within 30 days of declaration of result in manner prescribed, along with the register of election expenses (Under Sec78 of the RP Act,1951)

• Documents required to be filed:1. Part I to Part VI of Abstract statement signed by the candidate2. Copy of Bank statement 3. Affidavit signed by the candidate4. Register of Day-to-day Accounts with all bills and vouchers in original5. Copies of expenditure related notices issued by RO and replies to such notices6. Replies to discrepancies pointed out at the time of inspection

Other instructions• To file Affidavit of Asset and Liability of self, spouse and

dependant children as per revised format along with nomination

• Revised Affidavit to contain:I. Actual value and cost of addition to

Immovable assets along with Market value II. Bank Deposits and SharesIII. Actual liabilities including Govt.

dues and disputed liabilitiesIV. PAN of self, spouse and children and

Income Tax paid as per last returnV. Cases pending and cases of Conviction Orders

Role of DEO

– The DEO is responsible for the entire expenditure monitoring effort in the district.

– The DEO will be assisted by the Expenditure Monitoring Cell and various teams.

– The DEO shall extend all help to the RO, the Observer and the Asst. Expenditure Observers in performing their functions.

– The DEO shall prepare a list of Central Government and Central PSU employees and give it to the Observer for appointment of Asst. Expenditure Observers.

– The DEO shall provide logistical support to all the expenditure monitoring teams.

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Role of DEO (contd…)

– The DEO shall notify the rates of items of election expenditure on which election expenditure will be assessed within 3 days of announcement of elections by the Commission

– He will hold a meeting of all recognized National and State level Political Parties within 3 days of the announcement of elections by the Commission to explain the process of expenditure monitoring, legal provisions relating to election expenditure and consequences of non-compliance of these provisions.

– He shall scrutinize the statement of accounts of election expenditure submitted by the candidates after the declaration of results with the help of the Expenditure Monitoring Cell and the Observer and submit a report to the Commission.

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Suggestions for SEC & EXP Observer

• Inspection of Account during campaign period at least once preferably within last 3 days of campaign period by the Exp Obs. So that any underestimation of expenditure can be brought to the notice of the candidate.

• Requisition the services of State Excise Dept regarding to check boot legging and to oversee & chek any abnormal increase in production of IMFL/Liquors.

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• Formation of Complaint Monitoring CELL 24X7 call Centre facility. All complaints related with Exp should be addressed by Exp Observer through RO.

• Seizure of Cash or liquor being distributed to lure the voters and videography thereon for evidence/lodging of FIR in this regard.

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• Formation of Flying Squad/Surveillance Team for Seizures

• Expenditure Observer name / address/mobile no. /telephone no./Fax No should be notified and be given wide publicity so that one can make a complaint before him.

• Appeal to all Political Parties to exercise restraint for carrying huge amount of Cash during campaign and advise their candidates to do transaction through cheque as far as practicable.

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• Rate of all Election Material including advertisements in print/electronic media should be notified by the RO. ( DAVP rate may be made applicable)

• Appeal to general public to carry some documents if carrying huge amount of cash during campaign period.

• Appeal to general public not to take or give bribe as both are punishable offence.

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• Expenditure Observer will keep all evidences relating to expenditure of the candidate in the ` Folder of Evidence` and assist RO to prepare his report on very 11th day after declaration of results and RO will consider the comments of EXP OBS before sending it to the SEC.

• There should be a reporting format for EXP OBS regarding his observation to be sent independently to the SEC.

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• SEC may consider to devise a format for candidate in which he has to lodge his account of election expenses. ( Abstract Statement ) before the RO.

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THANKS

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