How does the Election Commission monitor election expenditure of contesting candidates?

Parliamentary elections are only a few days away. Not only candidates raised by political parties but Independent contestants also are in a frenetic bid to do all that they can towards wooing their electors. Over the years electioneering have become a moneyfed strategy of beating the rivals by dint of overpowering effect of money and muscle power. Often this ruthless poll expenditure borders on illegality of sorts. I remember to have read a few years ago in the newspaper quoting the then CEC that elections have become the biggest source of blackmoney. Electioneering today also happens to be a covert means of investing blackmoney by unscrupulous business men/politicians who may find in/on this occasion an opportunity to make their expenditure whiten under the pretext of funding/meeting election expenses. Thus it can be easily visualized that elections in India is no longer what it used to be decades ago when becoming the member of the August House was not uncommon or difficult for even a person of modest income serving the society.
Since 2010, the Election Commission of India(ECI) has been on a serious endeavour towards curbing the ruthless display of money power in elections. The ECI rightly appreciated that unless election expenditure is controlled effectively during election, the other efforts on the count of sanitizing elections against unfair practice feeding on blackmoney and muscle power shall also not be properly executed. Besides, the ECI was also aware of the fact that uncontrolled election expenditure during elections may leave the candidates with meager resources in disadvantageous positions. Hence, providing a level playing field is the responsibility of the ECI for a free, fair and transparent elections.
Though provisions related to maintaining correct account of election expenses and failure to lodge accounts within 30 days of the declaration of poll results were already in place under the Representation of People Act, 1951 and the Indian Penal Code, the existence of a structured mechanism at the district level were not fully developed prior to 2010.
Pursuant to this need of hour, the ECI came with a structured mechanism meant to monitor election related expenditure during elections.
The following represents in bare outline the details of the mechanism that seeks to control and curb election expenditure of candidates. It is through proper documentation and accounting of election related expenditure of a candidates contesting elections.
It is pointed out that maximum limit that can be incurred by a candidate as election expenditure is 70/54 lakh for parliamentary constituency and 28/20 lakh for assembly constituency. Lower figure in each category denotes expenditure ceiling for certain small states and Union territories.
First of all the candidate filing nomination has to open a fresh account with any branch of the schedule commercial bank/post office/Co-operative Banks in any part of the state. Candidate is required to transact from this account only for meeting any election expenses. For this they must deposit the fund in this dedicated account. Thereafter maintenance of accounts of the election expenses of the candidate in the three registers provided to each candidate at the very time of filing nomination is mandatory. The accounts of expenditure is to be maintained by the candidate in these registers only. The candidates are required to bring these three registers for the purpose for it being verified, scrutinized or reconciled with the Shadows Observation Register(SOR) which is maintained independently by the Accounting Team(AT) of the Expenditure Monitoring Cell. The Accounting team maintains this SOR on the basis of inputs provided by a number of teams deputed for different purposes associated with tracking of election expenditure (legal or illegal) by or on behalf of the candidate. These three registers mentioned above are namely -
  I) Day to day accounts Register  Register(white colour) for recording on a day to day basis daily expenses incurred item wise by the candidate.
  II) Cash Register (pink colour)-for recording all payments made in cash as well as recording voluntary donations from the person with full details of such person to verified by the ECI as and required.
III) Bank Register (Yellow Colour)-this register enables the candidate to record transaction through cheques that is cheque payments/receipt to individual/ firm and cheque
withdrawal from banks for meeting small cash payment needs.
To verify, reconcile and scrutinize the accounts maintained by the candidates there is an elaborate machinery comprising a number of teams known as Flying Squad Team(FST), Static Surveillance Team(SST), Video Surveillance Team(VST), Video Viewing Team(VVT) and a Team of Assistant Expenditure Observers(AEOs) each having a pre defined task to perform towards election expenditure monitoring. These teams while acting as a constituents of the Cell referred to as Election Monitoring Cell function in coordination with each other for proper accounting of election expenses of candidates at the level of District Election Office. This Election Monitoring Cell functions under the overall superintendence, control and direction of the District Election Officer(DEO).
The Cell starts functioning the day ECI announces election program through the press note.
The Cell is headed by an officer named as Nodal Officer. The Nodal Officer is entrusted with the responsibility of tracking election expenses of the candidates contesting elections through a number of teams having specific nomenclature and assignments to that end.
Type I Activities--
(unscrupulous, surreptitious and illegal)
ALL ACTIVITIES CARRIED OUT DURING ELECTIONS UNSCRUPULOUSLY SURREPTITIOUSLY AND ILLEGALLY
are hunted after and zeroed on by the following teams in the way briefly described below :
A. Flying Squad Team(FST)-this team is organized for each assembly constituency depending upon the size and complexity of the constituency in respect of geographical topography and other factors. Usually the number of such teams is 2 to 3. The team is manned by a magistrate and a police officer. It is the duty of the FST to carry out raids suo moto or otherwise in the field upon complaints with respect to illegal cash transactions/transportation, bootleggers, transportation of other contraband or liquor etc. The team causes FIR lodged in case such prohibited items are seized during raids carried out by them. The reports in specific format with videographic evidence to the Cell in respect of the outcome of the raid.
B. Static Surveillance Team(SST)-again this team is manned by a Magistrate and a Police officer. But this team is static. It raises Checkpost at strategic locations taking feedback from the local Police station, officer and people with regard to the ways and means and the routes frequently used by the anti social elements and other unscrupulous people for carrying out their illegal activities. Upon finding any thing illegal or in violation of the Model Code of Conduct the team reports to the authorities and the Cell besides, getting the FIR lodged on grounds of seizure of such objectionable materials during such cheking.
Type II Activities - -
(those activities about which the candidates are in possession of the conditional permission in writing by the competent authority to carry out)
In such cases the candidates obtain prior permission for holding any meeting, rally, roadshow etc.  with venue and time of such functions with full details of the no. of loudspeakers, chairs, dari, samiyana, size of the rostrum, no. of vehicles, persons attending the program etc.
C. Video Surveillance Team(VST)- this team covers such informed and permitted program of the party or candidate and prepares the videographic details of banners, poster, cut outs, vehicles, Chairs, table, size of the podium etc. in the most conspicuous way to identify expenditure related issues so that the video recording when viewed by a team called (VVT) deputed in the cell for the purpose presents no difficulty in assessing from the point of view of election expenses incurred in organizing such meeting, sabha, programmes, function, roadshow etc.
D. Video Viewing Team(VVT)-as mentioned above the role and duty of the VVT is to view the CD of video recording submitted by FST, SST, VST. Upon such viewing for which they are trained, they prepare report as to the number, size etc. poll materials and other specificities so that on the basis of which a yet another team known as Accounting Team keeps an account each candidate contesting elections.
E. Accounting Team(AT)-as indicated above the report along with the evidences with respect to the content of the said reports of all the above teams say, FST, SST, VST and VVT are made available to the Accounting Team which prepares the account of the election expenses of each candidate by maintaining separately for each candidate the shadow observation register(SOR) and Folder of Evidence (FOE). The objective assessment of expenses calculated as per the approved rate of each item fixed by the DEO is the most important duty of Accounting teams.
Apart from these teams there are appointed by the DEO a number of officials designated as Assistant Expenditure Observers who function under the direct instructions of the Expenditure Observer deputed in the poll bound constituency to monitor election expenditure of candidates. The Assistant Expenditure Observer  perform the task of acting as a link between Expenditure monitoring Cell and the Expenditure Observer(EO). They also serve as a source of information to the EO as to whether the teams of the Cell performs their duty in the most professional way.
The Expenditure Monitoring Cell causes the final expenditure account in prescribed format sent within 30 days of poll results to the ECI through District Election Officer.
Failure on part of contesting candidates to maintain accounts of election expenses is an offence under s.171(I) of the IPC punishable with a fine of 500 Rupees. Also under Section 10 C of the Representation of People Act the candidates failing to lodge his final accounts of his election expenses with the DEO may stand disqualified by the ECI for contesting subsequent elections for minimum period of 3 years by the Election Commission through an official order published in the Gazette.
It is hoped that this endeavour towards describing in brief some aspects of election expenditure monitoring mechanism for candidates will enable the readers with first hand knowledge of the subject.
R.R.Prabhakar.
31.03.2019.