SC tells EC to consider inputs to curb poll spending

SC Tells EC to Consider Inputs to Curb Poll Spending

UPSC Prelims + Mains Study Note

1. At a Glance

• The Supreme Court of India (Bench headed by CJI Surya Kant) on 11 February 2026 directed the Election Commission of India (ECI) to consider suggestions made in a writ petition for framing a Standard Operating Procedure (SOP) to curtail election expenditure. [S1]
• Petitioner Prabhakar Deshpande (IIT graduate) sought directions to penalise erring candidates and re-examine the cap on election expenses to preserve democratic credibility. [S1]
• Core UPSC relevance: intersection of constitutional bodies (SC + ECI), electoral finance regulation, and Rule of Law in democracy — directly maps to GS-II (Polity & Governance).
• India has candidate-level expenditure ceilings but no statutory cap on political party spending — a long-standing governance gap flagged by the Law Commission and Parliamentary Standing Committees. [S2], [S3]

2. Why in the News

• 11 February 2026: Supreme Court (CJI Surya Kant bench) heard a writ petition filed by Prabhakar Deshpande asking ECI to create an SOP against candidates exceeding expenditure limits, and to re-examine existing caps. [S1]
• Court found the petitioner's grievances regarding the effectiveness of existing monitoring mechanisms to be in the "larger public interest" even as the ECI defended its current oversight framework. [S1]
• EC's defence: ECI cited deployment of independent expenditure observers from the All India Services as an existing check; the Court did not dismiss this but still asked EC to apply mind to the proposals. [S1]

3. Background & Evolution

• 1951: Representation of the People Act, 1951 enacted; Section 77 mandates every candidate to maintain a correct account of election expenses and furnish returns to the ECI. [S2]
• Rule 90, Conduct of Elections Rules, 1961: Prescribes the maximum limit on candidates' election expenditure for Lok Sabha and State Assembly elections. [S3], [S4]
• Milestones:

4. Core Static Facts

Enabling Law & Rules - Section 77, RPA 1951 — Candidate's duty to maintain election expense accounts. - Section 10A, RPA 1951 — Disqualification for failure to lodge returns of election expenses. - Rule 90, Conduct of Elections Rules, 1961 — Sets maximum expenditure ceilings.

Current Expenditure Caps (post-2022 revision) [S4]

• No cap on political party expenditure in law.
• Implementing authority: Election Commission of India (Constitutional body under Article 324).
• Monitoring tool: Expenditure Observers — officers from the All India Services deployed by ECI.
• Candidates must submit day-to-day account register, inspected 3 times during the election period by ECI. [S3]

Key Bodies - Law Commission of India — has recommended reforms to election finance. - Parliamentary Standing Committee — has observed actual spending significantly exceeds disclosed figures. [S3]

5. Multi-Dimensional Analysis

Legal / Constitutional

• Article 324 vests superintendence, direction, and control of elections in the ECI — broad enough to encompass expenditure oversight. [S2]
• SC in 2013 (Deccan Herald case reference) held ECI has jurisdiction to disqualify candidates for filing false election expense accounts and directed inquiry completion within 45 days. [S2]
• Writ petitions under Article 32 (fundamental rights) can invoke SC jurisdiction to direct constitutional bodies like ECI to act. [S1]
• The 2026 petition tests whether SC can push ECI to go beyond existing monitoring to create enforceable SOPs.

Ethical / Governance

• Actual candidate expenditure is widely acknowledged to far exceed declared figures — creating a culture of non-disclosure and black money use in elections. [S3]
• Paid news — a form of disguised advertising not accounted as expenditure — was specifically targeted by SC direction to ECI (2013). [S2]
• Lack of party-level expenditure cap creates structural asymmetry: candidates are capped but parties can spend unlimited amounts on the same election.
• Expenditure Observers are IAS/IPS officers — while professional, their deployment by ECI raises questions about independence from executive influence.

Political / Administrative

• ECI defended existing mechanisms before SC, signalling institutional resistance to external mandates on procedural reforms. [S1]
• SOP-based reform would require ECI to operationalise spending controls more rigorously — challenge is enforcement at scale across millions of polling booths.
• Delimitation (ongoing 2026 exercise) will redraw constituency boundaries — fresh caps will need recalibration post-delimitation. [S1 context]

Economic

• Electoral spending in India (actual, unaccounted) runs into thousands of crores per election cycle — a significant informal economy driver during elections.
• High expenditure ceilings and poor enforcement incentivise crony funding and quid-pro-quo governance post-elections.
• Law Commission has linked election finance opacity to policy distortions favouring donor interests. [S3]

Social

• Prohibitive campaign costs create entry barriers for candidates from marginalised communities, women, and non-wealthy backgrounds.
• Effective expenditure curbs could democratise candidate diversity in legislatures.

6. Recent Developments (last 12–18 months)

• 6 January 2022: Government issued Notification S.O. 72(E) revising expenditure ceilings upward under Rule 90 of Conduct of Elections Rules, 1961. [S4]
• 11 February 2026: Supreme Court Bench (CJI Surya Kant) asked ECI to consider writ petition suggestions by Prabhakar Deshpande for an SOP to curb poll spending; described suggestions as "worth consideration." [S1]
• ECI, before the Court, defended deployment of AIS expenditure observers as adequate existing mechanism. [S1]
• Delimitation exercise (2026): Ongoing redrawing of constituency boundaries (mentioned in same newspaper context) will indirectly affect expenditure cap applicability and monitoring jurisdictions. [S1]

7. Prelims Hooks

1. Election expenditure limits for candidates are prescribed under Rule 90 of the Conduct of Elections Rules, 1961 — not directly in RPA 1951. [S4]
2. Current Lok Sabha candidate expenditure cap: ₹95 lakh (general states); ₹75 lakh (smaller states/UTs). [S4]
3. Current State Assembly candidate expenditure cap: ₹40 lakh (general); ₹28 lakh (smaller states/UTs). [S4]
4. Caps were last revised via Notification S.O. 72(E), dated 6 January 2022. [S4]
5. Section 77, RPA 1951 — mandates candidates to keep accounts of election expenses. [S2]
6. Section 10A, RPA 1951 — disqualification for failure to lodge election expense returns. [S2]
7. ECI deploys expenditure observers from the All India Services (not from a separate cadre). [S1]
8. Candidates' accounts are inspected 3 times during the election period by ECI-designated authorities. [S3]
9. No statutory cap exists on political party election expenditure in India (as distinct from candidate expenditure). [S3]
10. The 2026 SC bench directing ECI was headed by Chief Justice of India Surya Kant. [S1]
11. Petitioner in the 2026 case: Prabhakar Deshpande, described as an IIT graduate; petition filed under Article 32. [S1]
12. ECI's constitutional base for election oversight: Article 324 of the Constitution. [S2]
13. SC had earlier (2013) ruled ECI can disqualify candidates for filing false election expense accounts and directed inquiries to be completed within 45 days. [S2]
14. Paid news is treated as an election expense violation — ECI directed to act on it per SC ruling. [S2]

8. Mains Relevance

GS Paper: GS-II (Governance, Constitution, Polity, Social Justice, International Relations)

Specific Syllabus Headings: - Functioning of Constitutional Bodies — Election Commission of India - Role of Judiciary in strengthening democratic institutions - Electoral Reforms in India

Plausible Mains Question Stems: 1. "The Election Commission of India has existing mechanisms to monitor candidate expenditure, yet actual spending far exceeds declared limits. Critically examine the structural gaps in India's election finance regulatory framework and suggest reforms." (GS-II, 15 marks) 2. "Examine the role of the Supreme Court in nudging electoral reforms in India through judicial directions to the Election Commission. Does this approach strengthen or strain the separation of powers?" (GS-II, 10 marks) 3. "India caps candidate expenditure but not party expenditure in elections. Discuss the implications of this asymmetry for democratic equity and suggest how it may be addressed." (GS-II, 15 marks)

9. Related Topics to Study Next

10. Common Errors / Trap Areas

1. Confusing Section 77 and Rule 90: Section 77 (RPA 1951) mandates maintenance of accounts; Rule 90 (Conduct of Elections Rules 1961) prescribes the ceiling amount. Aspirants often conflate the two or misattribute the cap to the Act itself.
2. "No cap" on party spending ≠ no regulation: Parties must file annual expense statements with ECI, but there is no ceiling on what they spend during an election — distinct from the candidate cap. Do not confuse disclosure with ceiling.
3. Expenditure observers are AIS officers, not ECI permanent staff: A common misconception. They are deputed from the All India Services by the ECI for election duty.
4. Wrong year for cap revision: The most recent cap revision was January 2022 (S.O. 72(E)), not 2019 or 2024. Candidates often mix up years.
5. SC direction ≠ SC order to ECI: The February 2026 direction asked ECI to consider the suggestions — it was not a binding mandamus. Misreading the strength of judicial direction is a common error in exam answers.

11. Sources

• [S1] "SC tells EC to consider inputs to curb poll spending" — The Hindu, 11 February 2026 — https://www.thehindu.com/todays-paper/2026-02-11/ (Tier 4)
• [S2] "Code of Conduct for Political Parties and Anti-Defection Law" (includes SC ruling on ECI disqualification powers) — PRS India — https://prsindia.org/policy/report-summaries/electoral-reforms-code-of-conduct-for-political-parties-and-anti-defection-law (Tier 1)
• [S3] "Financing of Election Campaigns" — PRS India Discussion Paper — https://prsindia.org/files/parliament/discussion_papers/1370582100--Financing%20of%20Election%20Campaigns.pdf (Tier 1)
• [S4] "Expenditure limit for Elections" — Press Information Bureau — https://pib.gov.in/PressReleasePage.aspx?PRID=1797661 (Tier 1)