MEASURES TO CURB EXPENDITURE

Ostentatious display of money power in the form of huge cut-outs, hoardings, banners, etc.,

Election Commission's order No. 3/10/(ES007)/94-JSII, Dated : 2nd September, 1994

------------------------------------------------------Order

Subject:- Ostentatious display of money power in the form of huge cut-outs, hoardings, banners, etc., during elections.

Sub-section (1) of section 77 of the Representation of the People Act, 1951 provides that "Every candidate at an election shall, either by himself or by his election agent, keep a separate and correct account of all expenditure in connection with the election incurred or authorised by him or by his election agent between the date on which he has been nominated and the date of declaration of the result thereof, both dates inclusive".

2. Sub-section (3) of the said section 77 further provides that the total of the expenditure referred to in sub-section (1) shall not exceed such amount as may be prescribed. Such amounts are prescribed for all parliamentary and assembly constituencies in various States and Union Territories under rule 90 of the Conduct of Elections Rules, 1961.

3. The underlying object of the above provision of law fixing a ceiling on the election expenditure of candidates is that the money power does not play any pernicious role in the field of elections and the candidates with huge monetary resources do not sway or cloud the judgement and rational thinking of the common electors with the ostentatious use of money power placing the candidates with lower financial resources at a distinctly disadvantageous position. The intended salutary purpose of the law has, however, been defeated by Explanation (1) to the above-referred sub-section (1) of section 77 as inserted in 1974 to provide that "any expenditure incurred or authorised in connection with the election of a candidate by a political party or by any other association or body of persons or by any individual (other than the candidate or his election agent) shall not be deemed to be, and shall not ever be deemed to have been, expenditure in connection with the election incurred or authorised by the candidate or by his election agent" for the purposes of the said sub-section (1) of section 77.

4. The Commission has time and again pointed out the total and absolute inefficacy of the law relating to election expenditure as amended in 1974, but it has failed to evoke any response whatsoever from the Govt. on the remedial measures suggested by it to place curbs on the vitiating and corrupting effect of money power on elections and making the law on the subject really meaningful.

5. The absolute meaninglessness of the existing law on election expenditure can not be better described than in the words of the Supreme Court in two of its recent judgments. The Supreme Court observed in its judgment dated 19.11.1993, in Gadakh Yashwantrao Kankarrao Vs-E.V. alias Balasaheb Vikhe Patil and others (Civil Appeals Nos-2115, 2116, 2444 and 1758 of 1993) that:

"The existing law does not measure up to the existing realities. The ceiling on expenditure is fixed only in respect of the expenditure incurred or authorised by the candidate himself but the expenditure incurred by the party or anyone else in his election campaign is safely outside the net of legal sanction. The spirit of the provision suffers violation through the escape route. The prescription of ceiling on expenditure by a candidate is a mere eye-wash and no practical check on election expenses for which it was enacted to attain a meaningful democracy. This lacuna in the law is, however, for the Parliament to fill least the impression is reinforced that its retention is deliberate for the convenience of everyone. If this be not feasible, it may advisable to omit the provision to prevent the resort to indirect methods for its circumvention and subversion of the law, accepting without any qualm the role of money power in the elections. This provision has ceased to be even a fig leaf to hide the reality."



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