Return cash seized from citizens during polls, EC tells state

It's more than three months since Assembly elections were held in Maharashtra, Haryana and Jharkhand. New governments are in power and chief ministers have also assumed offices. But some voters are still cribbing. They are no followers of any candidate or political party. There are no complaints or FIR against them either. Their crime? They were carrying more than Rs50,000 during election time.

As per Election Commission (EC) rules, once the model code of conducts comes into force, no one is allowed to carry more than Rs50,000 in cash – without valid proofs. If you do carry money without documents, it can be seized. To be fair, the rules say the money has to be returned once proof is produced. But in reality, this is how it works.

"They harass ordinary citizens and sometimes seize money, even if it's Rs51,000," says one man from Mumbai from whom money was seized in October. It was returned to him only during the first week of December, but after much follow-ups with the police, collectorate and Income-Tax (I-T) department.

"The authorities have failed to stop hawala money from flowing in and instead harass commoners," he said. Many people become aware about this rule only when flying squads or state surveillance teams intercept them on "suspicion".

The Election Commission of India (ECI), after receiving many complaints from voters, has now instructed state agencies to release the money immediately. dna has a copy of the ECI communication dated December 23, 2014, to the Chief Electoral Officers of Maharashtra, Jharkhand, Haryana and Jammu and Kashmir (where polls were held in December) and their respective Inspectors-General of Police (law and order), who double up as the nodal officers for poll- expenditure monitoring.

According to an estimate, the four states have collectively seized nearly Rs30 crore of unaccounted cash during the elections. Over Rs19.78 crore has been seized in Maharashtra alone, when the model code of conduct was in force from September 13 to October 19.

Interestingly, to prevent the harassment of ordinary citizens, two weeks before the state polls, the ECI had directed the Chief Electoral Officers of Maharashtra and Haryana to constitute committees that must suo motu examine each seizure, not linked to any party or candidate and to immediately release the money.

A Maharashtra election official says,"We have no role to play in this. If the seized cash is not linked to any criminality, it is handed over to the Income-Tax department. The compliance report must be submitted by the I-T department to the nodal officer, who, further, submits it to the ECI." Nodal officer and IGP (law and order) Deven Bharti didn't respond to dna's queries.

"Private individuals and businessmen will have to hold three documentary proofs – legal source, end use and purpose. If these proofs are absent, cash is seized by the police or election squads. They have powers to intercept suspicious persons and book them under Section 171H and Section 188 of the IPC," said a police officer.

Section 171H pertains to illegal payments in connection with an election and Section 188 deals with disobedience to an order promulgated by a public servant. "If the amount exceeds Rs 10 lakh, the I-T department would be informed and only after necessary proofs are produced, will the money be released," he said.

Every bank transaction also comes under the scrutiny of the EC to control the flow of illicit money to political parties.

Citizens and election officers feel that the rules need to be amended. "Electoral reforms are a continuous process and the ECI must consider a change in this rule, especially when it is affecting the common people. Though it can't be scrapped altogether, ECI has a duty to curb corrupt practices in polls," said an election officer.