Laws, Rules and Reporting Formats For Expenditure Monitoring Mechanism

Legal Provisions Section 77 of the Representation of the People Act, 1951 :-  The candidate or his election agent has to maintain an account of election expenses.  This account must be a correct account of election expenses. 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 86 of the Conduct of Election Rules, 1961:-  the Rule lays down the manner in which the candidate has to maintain his/her account. 2

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 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

Legal Provisions (contd…)  DEO after scrutiny of the account received during this period and even if the account is not received, would send a copy of the receipt of service of notice and supplementary report to the Commission.  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.

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 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 within 3 days, 4 copies along with declaration as to identity of publisher attested by two persons. Penalty: imprisonment for a term up to six months or with fine Rs 2000/-

Legal Provisions (contd…) 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.

Objective of Expenditure Monitoring 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.

Legal Provisions (contd…) 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.  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.

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.

Reporting formats for candidates and political parties  Election Expenditure Register to be obtained from RO/DEO, comprises of - a. Day to Day Account Register ( Part A ) b. Cash Register ( Part B in Pink pages ) c. Bank Register ( Part C in yellow pages)  Abstract Statement ( Part I to Part VI) along with affidavit and acknowledgement duly verified by RO.  Affidavit to be filed in revised format.

Maintaining Account by candidates – Register of Day to Day Account.( Part A ) Meant for day to day expenditure, comprising of 9 columns subject to inspection at any time by the observer/designated officer. ‘Nil’ should be shown if there is no expenditure for any particular day. Paid and outstanding amount to be shown in total column against expenditure of any item. Vouchers/bills are to be arranged serially in a separate folder, date wise 11

Maintaining Account by candidates contd.  If any voucher is not attached, an explanation should be given by candidate  Source of expenditure incurred/authorised by the candidate - i.e it has been arranged by the candidate himself to be shown in Col. 6 of register, if given by party-in Col. 7 and if it is from any other source, then their names and addresses to be shown in Col. 8 12

13 Cash Register ( Part B)- Pink Pages All receipts in cash from any source including withdrawal from bank A/C should be written date wise in the receipt column along with names and addresses of person/party/ association/body/any other from whom amount received. Similarly amount and nature of expenditure, bill/ voucher no. & date and name of payee should be shown in col.s 5 to 8. Maintaining Account by candidates contd.

Balance amount kept (drawn for expenditure) is to be shown in col. 9 with details of places/persons. If any expenditure mentioned in col. 7 not reflected in column 2 of Day to Day Account Register, then it should be clarified in remarks column. ‘Nil’ should be mentioned against the date wherever no receipt or payment has been made. 14 Cash Register contd.

Maintaining Account by candidates contd. Bank Register ( Part C) -Yellow Pages Comprising 10 columns All amount received either from own fund or from any person or party or association or body or any other should be deposited in bank account opened for the expenditure purposes along with cheque details/bank details date wise. Similarly all payments against which cheques have been issued by the candidate or his election agent, should be reflected in relevant column of the bank register.

Maintaining Account by candidates contd. Abstract Statement( Part I to Part VI, Affidavit and acknowledgement )  Part I and Part II :- Informative part in respect of candidate regarding details of the candidate, sponsoring party, name of election, incurring or authorization of expenditure by the party, name of election agent and name of election etc.

Abstract Statement contd. Part-III Total of actual expenditure incurred by the candidate in election. Details of all expenditure made on rally, public meeting, campaign materials and campaign workers, vehicles etc. In its lower half, details of lump-sum grant received from the political party or association/body or any individual with name and address are given by candidate

Abstract Statement contd. Part-IV-Details of expenditure on vehicles used Part V:- Details of expenditure on Public Meetings/Rallies- mentioning about due permission, and by whom expenditure was incurred Part VI :- Expenditure on visits of Star Campaigners showing details of arrival, stay and departure and by whom expenditure was incurred. Affidavit to be sworn in by candidate before the first class Magistrate or Oath Commissioner or Notary Public (with signature and seal).

Lodging the account Account and Abstract statement shall be countersigned by candidate if lodged by agent and should be certified by candidate himself. Acknowledgement:- DEO office has to give acknowledgment after receiving the account from candidate Details on expenditure on public meetings/rallies to be given by the candidate/his agent in a format(Annex-16 )

Not lodging account in manner -If Election Expenditure Register comprising of Day to Day Account + Cash Register+ Bank Register + Abstract Statement (Part I to Part VI) + Bills and Vouchers (serially numbered) not lodged with the DEO office - Abstract Statement ( Part I to Part VI ) as well as Affidavit annexed with it not signed by the candidate himself. (both these should be singed by the candidate himself)

Not lodging account in manner -Bills and vouchers are not signed by the candidate or his election agent - In case of discrepancy on any item of expenditure, pointed out by RO/Expenditure Observer/designated officer during inspection of register, the explanation along with reason for the discrepancy on such items not enclosed. - Self certified copy of the bank statement not submitted. - Any amount not correctly reflected by the candidate or understatement of any amount of expenditure.

PARTY EXPENDITURE Each National Party and State Party has to file its expenditure statement within 75 days of completion of General Election to the LA of the State and within 90 days of completion of General Election to Lok Sabha. Party’s expenditure must tally with the candidate's expenditure received by him from his respective party.

Public Meetings, Rallies, etc. The candidate has to submit an expenditure plan to the RO in a format (Annex-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. In case of use of helicopter or aircraft, the plan has to be intimated in advance by the candidate. 23

Maintenance of Shadow Observation Register and Folder of Evidence Both Shadow Observation Register (Annex 11)and Folder of Evidence are maintained by Accounting Team Inputs provided by Video Surveillance Teams, Video Viewing Teams, MCMC, Flying Squads and Static Surveillance Teams Evidences collected against any expenditure entered in Shadow Observation Register are kept in a folder and cross referenced with it

DEO’s Scrutiny Report ( Annex21) In sl.no.8, prescribed format:- whether candidate has submitted his Expenditure Register ( Part A, B,C), Abstract Statement (Part I to VI) along with Affidavit sworn by candidate before Magistrate of first class or Oath Commissioner or Notary Public, vouchers of expenses singed by candidate/Agent, Self certified copies of the Bank Account Sl. no.10(a) of DEO`s Report:- The most important Column which may cause Notice for disqualification to be issued by the Commission. He has to mention as to whether items of expenses reported by candidate tally with those shown in Shadow Observation Register. If there is understatement or candidate has not mentioned any expenses then it has to be shown in relevant columns of 10(b) with proper evidences collected by various teams on Expenditure Monitoring kept with the DEO.

THANKS 26