Supreme Court rues sponsors of unaccounted cash during polls going scot-free

The Supreme Court on Friday said that people who use the power of money during elections are in safe hands as despite 70 years of Indian Independence, Income Tax authorities of India are yet to devise a mechanism for state-wise tracking of illegal cash seizures during elections, as a result of which, even if the cash gets caught, the candidate who sponsored it always escapes.

This telling observation by the Court on the state of affairs of crime detection and prosecution came while it was hearing a case of cash seizure in Karnataka wherein the Karnataka HC had acquitted a businessman from whom the Election Commission (EC) had seized unaccounted cash.

The bench of Justices NV Ramana and Mohan M Shantanagouder hearing the case had asked the Central Board of Direct Taxes (CBDT) and the Ministry of Finance about the mechanism to deal with cash seizures by the EC and whether any case ends up being prosecuted by tracking the source of the illicit money.

In answer to this query, the Income Tax authorities had said that the money seized during elections is not classified as election- or non-election-related and hence an account of it is not separately maintained. Till 2014, there was no mechanism in place to collect data from states and pursue cases individually, due to which the cash seized was released to the Treasury.

At odds to understand how, after so many elections, there was no thought on the part of the Government or its agencies to improve this system, the bench said, "That is why people who spend loads of money during elections are not worried as only the money is lost, which can be recovered after elections are won. It is sad that after 60-70 years after Independence, we are still trying to improve the system."

Senior advocate R Balasubramanium who appeared for the CBDT said that this was the position till 2014 but now a mechanism is being put in place, the results of which can be known after the 2019 elections are over. The bench asked the Centre to come up with details of the extent to which this mechanism has worked and inform the Court in August. Meanwhile, the Court permitted the states to file affidavits stating that action has been taken by them regarding such cases — which are being monitored their respective state police. As per data collected by the EC, Rs 303 crore unaccounted cash was seized during the 2014 General Elections.

‘MONEY LOST CAN BE RECOVERED’

At odds to understand how, after so many elections, there was no thought on the part of the Government or its agencies to improve this system, the bench said, “That is why people who spend loads of money during polls are not worried as only the money is lost, which can be recovered after elections are won. It is sad that after 60-70 years after Independence, we are still trying to improve the system.”