Instruction on Election Expenditure Monitoring - Expense related to candidate - payment by cash - reg

To

The Chief Electoral Officers of

Assam, Kerala, Tamil Nadu, Puducherry & West Bengal

Subject: Instruction on Election Expenditure Monitoring - Expense related to candidate - payment by cash - reg.

Sir,

With respect to instruction of even number dated 7 February, 2011 political parties have asked for further clarification. Election Commission has examined the issues and I am directed to clarify the following.

I. It is mentioned in the Commission's instructions No. 76/Instructions/2011/EEM dated 07-02- 2011 that the candidates shall incur all election expenses by account payee cheques from Bank account opened for election purpose, excepting minor expenses where it is not possible to issue cheque. Some political parties have asked for clarification, specifying the limits of such cash expenditure. It is hereby clarified that if the amount payable by candidate(s) to any person/entity for any item of expenditure does not exceed Rs 20,000/- during the entire process of election, then such expenditure can be incurred by cash, by withdrawing it from the bank a/c opened for the purpose of election. All other payments are to be made by account payce cheque from the said bank account.

2. As per Section 77 of RP Act, 1951, every candidate shall keep separate and correct account of all expenditure from the date on which he has been nominated and the date of declaration of result (both dates inclusive). It is hereby clarified that all candidates, while maintaining their register of accounts of election expenditure, shall account for all expenditure incurred on the day of filing of nomination (i c. from day) and also those incurred prior to the date of nomination like expenditure on campaign materials etc. which are used during the post nomination period. All expenses relating to the rally or procession organised while filing nomination shall be included in the accounts of the candidates.

3. When members of public attend a public rally/procession/public meeting of candidate(s) by using their own personal vehicle, without receiving any payment or reimbursement from anybody, it shall not be included in the expenditure of the candidate. However, the personal vehicles used in the rally or public meeting for campaign purpose by putting flags or banners or poster for the benefit of any candidate(s) shall be included in the expenses of the candidate(s). If the commercial vehicles bearing commercial registration number are used for rally or public meeting of any candidate(s) the expenditure on such vehicles shall be included in the account of the candidate(s).

4. One personal vehicle owned and used by the candidate(s) for campaign purpose shall be treated as campaign vehicle and notional expenditure on fuel and driver salary as per the market rate shall be included in the accounts of the candidate(s). In case other vehicles, owned by the candidate(s) are used for campaign purpose, then the notional expenses as per the notified rate for hiring of such vehicles shall be calculated by the candidate(s).

5. The use of flags, caps, mufflers with party symbol has been clarified in Question No. 72 of FAQ on Model Code of Conduct. The expense on such items of flags, mufflers or caps with party symbol shall be accounted for by the party concerned as its election expense. If they bear the name(s) or photo(s) of candidate(s), it shall be added to the accounts of the candidate. However, supply and distribution of main apparels like saree, shirt. T-shirt, dhoti etc. by party/candidate is not permitted as it is bribery of voters.

6. ECI instruction No. 464/INST/2011/EPS dated 28-03-2011has clarified that the expense on the vehicle of the district level party office bearers/leaders (other than star campaigners) for the purpose of their visit to multiple ACs within the district for electioneering shall not be included in the accounts of candidate(s). It is further clarified that if the district functionary himself is a candidate, contesting from the same district and such vehicle is used for his movement in the constituency from where he is contesting, or such vehicle is used for campaign for any particular candidate(s), then the hiring charges of the vehicle shall be included in the accounts of the candidate(s) using the vehicle for campaign purpose.

7. You are requested to bring it to the notice of all concerned.

Yours faithfully.

Sd/-

(Avinash Kumar) Under Secretary

Copy to:

1. All National Political Parties 2. All political parties of the States of Assam. West Bengal, Tamil Nadu, Kerala and Puducherry.

Sd/-

(Avinash Kumar) Under Secretary

*Note:- Please refer Annexure- Ell and E12.