(a) whether any Commission has been/is being set up regarding State funding
of elections by the Government;
(b)if so, the details of composition and the terms of reference thereof;
(c)the number of meetings held by the said Commission;
(d) whether the Commission has submitted its report;
(e) if so, the main recommendations made by the Commission and the action
taken by the Government thereon; and
(f) if not, the time by which the report is likely to be submitted?
MINISTER OF LAW AND JUSTICE (DR. M. VEERAFFA MOILY)
(a) to (f): A Statement is laid on the Table of the House.
Statement referred to in reply to parts (a) to (f) of the Lok SabF Unstarred Question No. 2657 for
the 23rd July, 2009.
Pursuant to a decision taken at the meeting of the leaders of various political parties held on
the 22nd May, 1998, under the Chairmanship of the then Home Minister, the Government of India
constituted a Committee under the Chairmanship of Shri Indrajit Gupta, Member of f Parliament.
Initially the Committee consisted of seven Members (all Members of Parliament) including the
Chairman. Subsequently, the Committee was expanded by the inclusion of one more Member of
Parliament, namely, Prof. Ram Gopal Yadav, on the 6th August, 1998. Further, the services of
Shri S.K. Merdiratta, a former Director (Law) and Principal Secretary to the Election Commission,
were provided to assist the Committee as its Secretary.
The composition of the Committee is as under:
1. Shri Indrajit Gupta, Chairman
2. Shri SomnathChatterjee Member
3. Dr. Manmohan Singh, Member
4. Shri V.K. Malhotra, Member
5. Shri Madhukar Sarpotdar, Member
6. Shri R. Muthiah, Member
7 Shri Digvijay Singh, Member and
8. Prof. Ram Gopal Yadav, Member
The terms of reference of the Committee are as under:
`The Committee will:-
(a) examine the pattern of State funding in other countries where it
is in vogue and suggest concrete proposals for providing State
funding to candidates set up by recognised political parties, and
(b) examine, in detail, the following related proposals and make
suitable recommendations:
(i) maintenance of accounts by political parties and audit
thereof;
(ii) ban on donations by companies to political parties;
(iii) inclusion of expenses of political parties in the election expenses of candidates for the
purposes of ceiling on election expenses; and
(iv) empowering of the Election Commission of India to fix ceiling on election expenses before
every general election.
The Committee after its constitution held a total of eight formal meetings. The Committee has
submitted its report in December, 1998.
The Committee had recommended inter alia, creation of an `election fund` of Rs.1200 crores with
contribution of Rs.600 crores from the Central Government and remaining Rs.600 crores by way of
contribution from all the State Governments including some other recommendations. The Committee,
therefore, did not recommend that the Central Government should bear full funds in this regard and
no such proposal is, therefore, under consideration of the Government. The Government had,
however, invited the comments / views of the State Governments on the recommendations of the
Committee and the majority view of the State Governments was that due to financial constraint the
State Government will not be able to contribute their share and, therefore, the whole amount
should be contributed by the Central Government itself.
In addition to the above, the main recommendation of the Committee which has been considered by
the Government and it had sought the recommendations of the Election Commission of India on
suggestions made by the Committee. The Election Commission made several recommendations after
consulting national and state political parties for providing facilities at state cost to
recognized political parties and candidates set up by them, in kind, for example, e.g.
[(a)Recognised National/State Partks:] accommodation for headquarters; 3,000 telephone calls for a
National Party headquarters and 1 s000 calls for a State party headquarters per month over and
above the free calls, if any, permitted to any subscriber; one computer with internet connection;
adequate air time (already being granted) on Government controlled electronic media;
[(b)Candidates of recognized political parties:] 300 litres of Petrol or 450 litres of Diesel for
each candidate for every assembly segment, subject, however, to a maximum of 1500 litres of petrol
or 2,250 litres of diesel for a Parliamentary Constituency; specified quantity of paper for
printing of voter slips, etc. in accordance with the number of electors in the Constituency;
postage @ one communication (not weighting more than 10 grams) per elector in the Constituency;
etc.; one set of loudspeaker with microphone for every Assembly segment, subject to maximum of
10 sets for a Parliamentary Constituency; instead of installing land-line telephone, provision for
a Mobile Pre-paid Card to every candidate for Rs.l5OO/-(i.e.Rs.lOO/-per day) for every Assembly
segment, subject to maximum of Rs. 7,500/- for a Parliamentary Constituency; candidates` camps at
each polling station (beyond a distance of 200 metres) with two chairs and a table; refreshments
and food packets for counting agents inside the counting hall (for independent candidates also);
etc. As rega. .s allocation of time to parties on private cable television network and electronic
media, the matter is under consideration of the Government in consultation with the Election
Commission to evolve some viable practical formula.
In respect of the items mentioned at (a) above, the Election Commission recommended that the same
may be provided to political parties by the Government, while the materials/facilities mentioned
at (b) above, those may be furnished to the candidates directly by the District Election Officers
concerned. The Commission also recommended that the expenditure on account of funding on the above
items under (b) should be suitably deductible from the expenditure ceiling of a candidate. The
Legislative Department accordingly sought the approval of the Cabinet on these recommendations of
the Election Commission as well on the recommendation of the Indrajit Gupta Committee regarding
setting up of a corpus of election fund of Rs. 1200 crores with states` contribution of Rs.600
crores annually to the Fund. The States have been unwilling on the measure(s). Extracts of
Chapter-IX of the report of the Committee on State Funding of Elections are given in Annexure
to this Statement.
Further, the process of reform of electoral laws is, however, a continuous and
ongoing process and can be carried out only through consensus among political
parties. Since it is a long drawn process, it is not possible to indicate any time
frame.
Annexure to Statement referred to in reply to parts (a) to (f) of Lok Sabha Unstarred Question
No. 2657 for 23-07-2009
CHAPTER-IX CONCLUSION AND SUMMARY OF RECOMMENDATIONS
Conclusion
1. Before concluding, the Committee cannot help expressing its
considered view that its recommendations being limited in nature and
confined to only one of the aspects of the electoral reforms may bring about
only some cosmetic changes in the electoral sphere. What is needed,
however, is an immediate overhauling of the electoral process whereby
elections are freed from evil influence of all vitiating factors, particularly,
criminalisation of politics. It goes without saying that money power and
muscle power go together to vitiate the electoral proces and it is their
combined effect which is sullying the purity of electoral contests and
effecting free and fair elections. Meaningful electoral reforms in other
spheres of electoral activity are also Urgently needed if the present
recommendations of the Committee are to serve the intended useful purpose.
Summary of recommendations:
2. For facility of easy reference and quick comprehension, the
recommendations of the Committee are summarised as follows:
1. State funding of elections is fully justified - constitutionally, legally
and, also in the larger public interest. [Chapter II, para 6.14]
2. State funding should be confined only to the parties recognised as
National or State parties by the Election Commission of India, and to
the candidates set up by such parties, [Chapter II, para 8.3]
3. Given the budgetary constraints and the present financial stringency,
only part of the financial burden of political parties may be shifted to
the State,for the time being.Gradually, more and more of their,
expenses` burden can be progressively shifted to the State so that
ultimately all their legitimate expenses become a charge on the State.
[Chapter II, para 9.2]
4. Any State funding should be in kind, and not in cash. [Chapter II,para 10.2]
5. To begin with, the recognised National and State parties and their
candidates may be granted the .following facilities, at State cost:-
(i) Every recognised National paity may be allotted rent-free
accommodation in the National Capitol at Delhi, with one rent-free
telephone. [Chapter III, paras 2.1 & 2.2]
(ii) Similar facility of rent-free accommodation and rent-free
telephone may be given to each recognised State party in the State in which
its headquarters is situate. [Chapter III, para 2.3]
(iii) At the time of every general election to the House of the People
or to a State Legislative Assembly, the recognised National and State parties may be granted
sufficient free air time on State owned Doordarshan and All India Radio for their election
propaganda over the electronic media. [Chapter III, paras3.1 & 3.2]
(iv) Other private channels, including Cable Operators, may also be
required to like-wise make sufficient free air time available for use by the
recognised National and State parties, during general election. [Chapter III,
para3.3]
(v) Each candidate of a recognised political party may be provided
with-
(a) a specified quantity of petrol or diesel for vehicles used
for his election campaign;
(b) a specified quantity of paper for printing his election
literature and the unofficial identity slips for distribution
to voters;
(c) postal stamps of a specified amount;
(d) five copies of electoral roll of his constituency;
(e) one set of loudspeakers (i.e., one micro-phone and two
loudspeakers) for every assembly constituency, or for
every assembly segment of a parliamentary constituency, subject to a maximum of six such sets
for,the entire parliamentary constituency;
(f) one deposit-free telephone with a specified number of
free calls for his main campaign office in every assembly
constituency/segment (subject to a maximum of six such
telephones for the entire parliamentary constituency);;
(g) some minimum arrangement for his camps outside each
Polling Station, on the day of poll;
(h) refreshments and food packets for his counting agents
inside the counting hall, on the day of counting.
[Chapter III, para4.2]
(vi) The quantities of petrol, diesel, paper and postal stamps to be
given to candidates may be worked out by the Election Commission on realistic basis for different
States, and for different constituencies within the same State, having regard to territorial
extent of constituencies, size of electorate, geographical features of the areas, means of
communication available, etc. [Chapter III, para 4.3]
(vii) The facilities recommended above for the candidates would be available to the candidates of
recognised State parties only in the State or States in which they are recognised as such State
parties, and not in other States. The candidates of recognised National parties would, however,
be eligible for the said facilities in all States, wherever they are so set up.
[Chapter III, para 5]
6. In order to curb the mounting election expenses of parties and
candidates and ostentatious show of money power by them, reasonable
restrictions may be placed by law on all or any of the following matters:
(i) wall writings,
(ii) display of cut-outs, hoardings, banners;
(iii) hoisting of flags (except at party offices, public meetings
and other specified places);
(iv) use of more than a specified number of vehicles for
election campaigns and for processions;
(v) announcements or publicity by more than a specified
number of moving vehicles;
(vi) holding of public meetings beyond the specified hours;
(vii) display of posters at places,other than those specified by
the district/electoral authorities.
[Chapter IV, para 2.2]
7.1 Political parties should compulsorily submit their annual Recounts regularly to the Income Tax
authorities, showing all details of their receipts and expenditure. [Chapter IV, para 1(a)]
7.2 No State funding should be provided to any party or its candidates if
the party has failed to submit its annual return for the previous assessment
year under the Income Tax Act. [Chapter IV, para 1(a)]
7.3 Political parties should also file a complete account of their election
expenditure at every general election to the Election Commission of India.
Such account should show the receipts and expenditure, both on the general
party propaganda and on individual candidates. [Chapter IV, para 1(c)]
7.4 To bring transparency in party accounts, all donations received by
political parties above the amount of Rs. 10,000/- (ten thousand) should be
accepted only by means of cheques/drafts and the names of such donors
should be fully disclosed in their accounts. [Chapter IV, para 1(d)]
7.5 These accounts may be audited by such Chartered Accountants as
may be selected by the political parties themselves, which may, however,
be further checked by the Income Tax authorities by their own agencies,
wherever considered necessary by them. [Chapter IV, para 1(b)]
8.1 Ban on donations by Government companies for political purposes should continue.
[Chapter V, para 7.2]
8.2 The question whether there should be any ban on donations by other companies and corporate
bodies for political purposes may be decided by Government and Parliament in their collective
wisdom. [Chapter V, para 6]
9. The question whether election expenses of political parties and other
bodies or associations and individuals should be included or not in the
accounts of election expenses of candidates may also be decided by the
Government/Parliament in their collective wisdom.However,apparent
contradiction between the provisions of section 77(1), Explanation (1), Representation of the
People Act, 1951 and section 171 H, IPC, needs to be resolved. [Chapter VI, para 10]
10. Periodic revision of election expenses may continue to be done by the
Central Government, in consultation with the Election Commission of India,
as at present. {Chapter VII, para 4]
11. A separate Election Fund may be created for meeting the expenses on
State funding of elections. To begin with, the Central Govt. may contribute
Rs. 600 crores annually, at the rate of Rs. 10/- per elector for the total
electorate of about 60 crores in the country, towards the corpus of the fund.
The State Govts., all taken together, may also contribute proportionately a
matching amount of Rs. 600 crores annually, in accordance with the present
financial arrangement between Ibe Centre and Stales whereby nil capita!
expenses on election items are shared by them on 50:50 basis. [CHnptcr
VIH, para 2 & 3].
(Indrajit Gupta)
Chairman
(Somnath Chatteqee)
(Dr. Manmohan Singh)
(Madhukar Sarpotdar)
(Vijay Kumar Malhotra)
(R. Muthiah)
(Digvijay Singh)
(Ram Gopal Yadav)
New Delhi,
30 December,1998