EC issues revised guidelines for transparency in party funds

NEW DELHI, Feb 27: The Election Commission (EC) today issued a set of draft “revised” guidelines to political parties asking them not to give cash to their candidates in a bid to curb the menace of blackmoney in elections.

The EC had initially framed these guidelines in September last year, following which political parties were asked to send suggestions and comments before the EC brings these directions into force.

The Commission, in its latest communication, has asked the political parties to send their comments or suggestions withing the next 14 days.

If a reply is not sent by the parties, the EC said it “will be presumed” that they have no comments to offer and the measures will be formally notified.

One of the salient points mooted by the EC this time is that the parties, which desire to provide any amount to its candidates for their election expenses, “shall make such payment, not exceeding the prescribed ceiling, only through crossed account payee cheque or draft or through bank account transfer and not in cash.”

Among the other suggestions is the EC’s long-standing view that all political parties “shall submit a copy of the audited annual accounts with auditor’s report for each financial year to it before October 30 of each year.”

These norms were prepared by the EC in consultation with the Institute of Chartered Accountants of India (ICAI).

“Treasurer of the political party or such person as authorised by the party shall, besides maintaining the accounts at all state and local units, maintain consolidated accounts at the central party headquarters,” says one of the guidelines.

The EC has also written to the parties on procedures for making cash payments other than to candidates.

“It is advised that the party shall not make any payment, in excess of Rs 20,000 in a day to any person or company or entity in cash, except where the payment made in a village or town, which is not served by a bank or the payment is made to any employee or party functionary towards salary, pension or for reimbursement of his expenses or in cases where cash payment is required to be made mandatorily,” the EC said.

The Commission also wants that all contributions or amounts received by parties in excess of Rs 1,000 shall be acknowledged with a receipt and the party shall maintain a record of the name and address of such individuals, companies or entities.

The EC also reiterated its earlier guideline that any contribution in cash and more than Rs 20,000, made by a person or company to a party, should not be done other than by crossed account payee cheque or draft or through bank account transfer.

The Commission said all contributions made to a party should be deposited in the party’s bank account within a period of seven days.

The poll watchdog, which has created an election expenditure monitoring cell and deploys tax sleuths to monitor cash funds for some years now, has stressed that all payments made to candidates for poll-related expenses should be done through recognised banking channels as mandated by RBI.

The EC said it is taking these steps in the interest of conduct of free and fair elections and to provide a level- playing field at the hustings. (PTI)