255th Report - Electoral Reforms | Economic Survey & Government Reports - UPSC PDF Download

 Page 1


 
 
 
 
 
GOVERNMENT OF INDIA 
 
 
 
LAW COMMISSION 
OF 
INDIA 
 
 
 
Report No.255 
 
 
Electoral Reforms 
 
 
 
March 2015 
 
  
Page 2


 
 
 
 
 
GOVERNMENT OF INDIA 
 
 
 
LAW COMMISSION 
OF 
INDIA 
 
 
 
Report No.255 
 
 
Electoral Reforms 
 
 
 
March 2015 
 
  
ii 
 
 
D.O. No.6(3)/240/2013-LC(LS)         12 March, 2015 
 
Dear Shri Sadananda Gowda ji, 
  
  The Ministry of Law and Justice, in January 2013, requested the Twentieth Law 
Commission of India to consider the issue of “Electoral Reforms” in its entirety and suggest 
comprehensive measures for changes in the law.  While working on the subject, the Supreme 
Court of India, in the matter of “Public Interest Foundation & Others V. Union of India & Anr - 
Writ Petition (Civil) No. 536 of 2011, directed the Law Commission of India to make its 
suggestions on two specific issues, viz., (i) ‘curbing criminalization of politics and needed law 
reforms’; and (ii) ‘impact and consequences of candidates filing false affidavits and needed law 
reforms to check such practice’. In the light of this judgment, the Commission worked 
specifically on these two areas and, after series of discussions, followed by a National 
Consultation held on 1
st
 February 2014, submitted its 244
th
 Report titled “Electoral 
Disqualifications” on 24
th
 February 2014 to the Government of India. 
 
 After the submission of Report No.244, the Commission circulated another questionnaire 
to all registered national and State political parties seeking their views on ten points, the 
response received was not very encouraging, though.  However, the Commission undertook 
an extensive study to suggest electoral reforms, held various rounds of discussions with the 
stakeholders and analysed in-depth the issues involved. After detailed deliberations, the 
Commission has now come up with its recommendations which are put in the form its final 
Report, Report No.255, titled “Electoral Reforms”, which is sent herewith for consideration 
by the Government.    
 
 With warm regards, 
Yours sincerely, 
 
Sd/-     
[Ajit Prakash Shah] 
Shri D.V. Sadananda Gowda 
Hon’ble Minister for Law and Justice 
Government of India 
Shastri Bhawan 
New Delhi – 110 115  
Page 3


 
 
 
 
 
GOVERNMENT OF INDIA 
 
 
 
LAW COMMISSION 
OF 
INDIA 
 
 
 
Report No.255 
 
 
Electoral Reforms 
 
 
 
March 2015 
 
  
ii 
 
 
D.O. No.6(3)/240/2013-LC(LS)         12 March, 2015 
 
Dear Shri Sadananda Gowda ji, 
  
  The Ministry of Law and Justice, in January 2013, requested the Twentieth Law 
Commission of India to consider the issue of “Electoral Reforms” in its entirety and suggest 
comprehensive measures for changes in the law.  While working on the subject, the Supreme 
Court of India, in the matter of “Public Interest Foundation & Others V. Union of India & Anr - 
Writ Petition (Civil) No. 536 of 2011, directed the Law Commission of India to make its 
suggestions on two specific issues, viz., (i) ‘curbing criminalization of politics and needed law 
reforms’; and (ii) ‘impact and consequences of candidates filing false affidavits and needed law 
reforms to check such practice’. In the light of this judgment, the Commission worked 
specifically on these two areas and, after series of discussions, followed by a National 
Consultation held on 1
st
 February 2014, submitted its 244
th
 Report titled “Electoral 
Disqualifications” on 24
th
 February 2014 to the Government of India. 
 
 After the submission of Report No.244, the Commission circulated another questionnaire 
to all registered national and State political parties seeking their views on ten points, the 
response received was not very encouraging, though.  However, the Commission undertook 
an extensive study to suggest electoral reforms, held various rounds of discussions with the 
stakeholders and analysed in-depth the issues involved. After detailed deliberations, the 
Commission has now come up with its recommendations which are put in the form its final 
Report, Report No.255, titled “Electoral Reforms”, which is sent herewith for consideration 
by the Government.    
 
 With warm regards, 
Yours sincerely, 
 
Sd/-     
[Ajit Prakash Shah] 
Shri D.V. Sadananda Gowda 
Hon’ble Minister for Law and Justice 
Government of India 
Shastri Bhawan 
New Delhi – 110 115  
iii 
 
Report No.255 
Electoral Reforms 
Table of Contents 
Chapter Title Page 
I 
BACKGROUND TO THE REPORT 1-4 
A History of Electoral Reforms in India 1-2 
B Consultation Paper Issued by the Law 
Commission  
2-3 
C The 244
th
 Report of the Law Commission 3 
D The Present Report 3-4 
II 
ELECTION FINANCE REFORM 5-68 
A The Current Law: A Summary Snapshot 5-6 
B B. Need for Election Finance Reform 7-11 
C C. Laws Regulating Election Expenditure, 
Contributions, and Disclosure 
11-19 
(i) Laws regulating election expenditure for candidates 
11-12 
(ii) Laws regulating election expenditure for political 
parties: Third party expenditure 
12-14 
(iii) Laws regulating disclosure of election expenditure 
for candidates and parties 
14-16 
(iv) Laws regulating contribution to political parties 
16-17 
(v) Laws regulating disclosure of political contribution 
by parties and companies 
17-19 
D Electoral Expenditure, Disclosure, and 
Contribution: A Comparative Analysis 
19-35 
(i) United Kingdom 
19-22 
(ii) Germany 
22-25 
(iii) United States of America 
25-28 
(iv) Australia 
28-31 
(v) Japan 
32-34 
(vi) Philippines 
34-35 
E Legal Lacunae and the Under-reporting of 
Election Spending  
35-59 
(i) Understanding the reality of election financing 
today 
35-37 
(ii) Legal lacunae  
37-39 
(iii) Recommendations 
39-53 
F State Funding of Elections 53-59 
(i) History of reform proposals 
54-55 
(ii) Comparative provisions governing public funding of 
elections 
55-57 
(iii) Recommendations 
57-59 
Page 4


 
 
 
 
 
GOVERNMENT OF INDIA 
 
 
 
LAW COMMISSION 
OF 
INDIA 
 
 
 
Report No.255 
 
 
Electoral Reforms 
 
 
 
March 2015 
 
  
ii 
 
 
D.O. No.6(3)/240/2013-LC(LS)         12 March, 2015 
 
Dear Shri Sadananda Gowda ji, 
  
  The Ministry of Law and Justice, in January 2013, requested the Twentieth Law 
Commission of India to consider the issue of “Electoral Reforms” in its entirety and suggest 
comprehensive measures for changes in the law.  While working on the subject, the Supreme 
Court of India, in the matter of “Public Interest Foundation & Others V. Union of India & Anr - 
Writ Petition (Civil) No. 536 of 2011, directed the Law Commission of India to make its 
suggestions on two specific issues, viz., (i) ‘curbing criminalization of politics and needed law 
reforms’; and (ii) ‘impact and consequences of candidates filing false affidavits and needed law 
reforms to check such practice’. In the light of this judgment, the Commission worked 
specifically on these two areas and, after series of discussions, followed by a National 
Consultation held on 1
st
 February 2014, submitted its 244
th
 Report titled “Electoral 
Disqualifications” on 24
th
 February 2014 to the Government of India. 
 
 After the submission of Report No.244, the Commission circulated another questionnaire 
to all registered national and State political parties seeking their views on ten points, the 
response received was not very encouraging, though.  However, the Commission undertook 
an extensive study to suggest electoral reforms, held various rounds of discussions with the 
stakeholders and analysed in-depth the issues involved. After detailed deliberations, the 
Commission has now come up with its recommendations which are put in the form its final 
Report, Report No.255, titled “Electoral Reforms”, which is sent herewith for consideration 
by the Government.    
 
 With warm regards, 
Yours sincerely, 
 
Sd/-     
[Ajit Prakash Shah] 
Shri D.V. Sadananda Gowda 
Hon’ble Minister for Law and Justice 
Government of India 
Shastri Bhawan 
New Delhi – 110 115  
iii 
 
Report No.255 
Electoral Reforms 
Table of Contents 
Chapter Title Page 
I 
BACKGROUND TO THE REPORT 1-4 
A History of Electoral Reforms in India 1-2 
B Consultation Paper Issued by the Law 
Commission  
2-3 
C The 244
th
 Report of the Law Commission 3 
D The Present Report 3-4 
II 
ELECTION FINANCE REFORM 5-68 
A The Current Law: A Summary Snapshot 5-6 
B B. Need for Election Finance Reform 7-11 
C C. Laws Regulating Election Expenditure, 
Contributions, and Disclosure 
11-19 
(i) Laws regulating election expenditure for candidates 
11-12 
(ii) Laws regulating election expenditure for political 
parties: Third party expenditure 
12-14 
(iii) Laws regulating disclosure of election expenditure 
for candidates and parties 
14-16 
(iv) Laws regulating contribution to political parties 
16-17 
(v) Laws regulating disclosure of political contribution 
by parties and companies 
17-19 
D Electoral Expenditure, Disclosure, and 
Contribution: A Comparative Analysis 
19-35 
(i) United Kingdom 
19-22 
(ii) Germany 
22-25 
(iii) United States of America 
25-28 
(iv) Australia 
28-31 
(v) Japan 
32-34 
(vi) Philippines 
34-35 
E Legal Lacunae and the Under-reporting of 
Election Spending  
35-59 
(i) Understanding the reality of election financing 
today 
35-37 
(ii) Legal lacunae  
37-39 
(iii) Recommendations 
39-53 
F State Funding of Elections 53-59 
(i) History of reform proposals 
54-55 
(ii) Comparative provisions governing public funding of 
elections 
55-57 
(iii) Recommendations 
57-59 
iv 
 
G Recommendations 59-68 
(i) On Expenses and Contribution 
59-60 
(ii) On Disclosure  
60-64 
(iii) On Penalties 
64-67 
(iv) On State Funding of Elections 
68 
III 
REGULATION OF POLITICAL PARTIES 
AND INNER PARTY DEMOCRACY  
69-79 
A History of Reform Proposals 69-70 
B Laws Regulating Internal Democracy 70-72 
C Internal Democracy: A Comparative 
Perspective 
72-76 
 Germany 
72-74 
 Portugal 
74-75 
 Spain 
75-76 
D Recommendations 76-79 
IV 
FROM FIRST PAST THE POST TO 
PROPORTIONAL REPRESENTATION 
80-88 
A The Current System and Its Alternatives 80-81 
B The Merits and Demerits of the FPTP System 
81-84 
(i) Simplicity 
81 
(ii) Stability 
81 
(iii) Representativeness 84 
C Merits and Demerits of Proportional 
Representation 
83-88 
(i) Simplicity 
83 
(ii) Stability 
83 
(iii) Representativeness 
84 
D The List System in Germany 84-85 
E Recommendations of Past Reports 85-87 
(i) Report of the ECI on the fifth General Elections in 
India (1971-72) 
85 
(ii) 
Chief Election Commissioner Shakdher’s proposal  
86 
(iii) 
170th Report of the Law Commission 
86-87 
F Recommendations  87-88 
V 
ANTI DEFECTION LAW IN INDIA 
89-98 
A Introduction 89-91 
B Exceptions to the Law on Defection 91-93 
C Procedure under Paragraph 6 of the Tenth 
Schedule 
93-98 
(i) The role of the Speaker in deciding petitions 
under the Tenth Schedule 
93-95 
Page 5


 
 
 
 
 
GOVERNMENT OF INDIA 
 
 
 
LAW COMMISSION 
OF 
INDIA 
 
 
 
Report No.255 
 
 
Electoral Reforms 
 
 
 
March 2015 
 
  
ii 
 
 
D.O. No.6(3)/240/2013-LC(LS)         12 March, 2015 
 
Dear Shri Sadananda Gowda ji, 
  
  The Ministry of Law and Justice, in January 2013, requested the Twentieth Law 
Commission of India to consider the issue of “Electoral Reforms” in its entirety and suggest 
comprehensive measures for changes in the law.  While working on the subject, the Supreme 
Court of India, in the matter of “Public Interest Foundation & Others V. Union of India & Anr - 
Writ Petition (Civil) No. 536 of 2011, directed the Law Commission of India to make its 
suggestions on two specific issues, viz., (i) ‘curbing criminalization of politics and needed law 
reforms’; and (ii) ‘impact and consequences of candidates filing false affidavits and needed law 
reforms to check such practice’. In the light of this judgment, the Commission worked 
specifically on these two areas and, after series of discussions, followed by a National 
Consultation held on 1
st
 February 2014, submitted its 244
th
 Report titled “Electoral 
Disqualifications” on 24
th
 February 2014 to the Government of India. 
 
 After the submission of Report No.244, the Commission circulated another questionnaire 
to all registered national and State political parties seeking their views on ten points, the 
response received was not very encouraging, though.  However, the Commission undertook 
an extensive study to suggest electoral reforms, held various rounds of discussions with the 
stakeholders and analysed in-depth the issues involved. After detailed deliberations, the 
Commission has now come up with its recommendations which are put in the form its final 
Report, Report No.255, titled “Electoral Reforms”, which is sent herewith for consideration 
by the Government.    
 
 With warm regards, 
Yours sincerely, 
 
Sd/-     
[Ajit Prakash Shah] 
Shri D.V. Sadananda Gowda 
Hon’ble Minister for Law and Justice 
Government of India 
Shastri Bhawan 
New Delhi – 110 115  
iii 
 
Report No.255 
Electoral Reforms 
Table of Contents 
Chapter Title Page 
I 
BACKGROUND TO THE REPORT 1-4 
A History of Electoral Reforms in India 1-2 
B Consultation Paper Issued by the Law 
Commission  
2-3 
C The 244
th
 Report of the Law Commission 3 
D The Present Report 3-4 
II 
ELECTION FINANCE REFORM 5-68 
A The Current Law: A Summary Snapshot 5-6 
B B. Need for Election Finance Reform 7-11 
C C. Laws Regulating Election Expenditure, 
Contributions, and Disclosure 
11-19 
(i) Laws regulating election expenditure for candidates 
11-12 
(ii) Laws regulating election expenditure for political 
parties: Third party expenditure 
12-14 
(iii) Laws regulating disclosure of election expenditure 
for candidates and parties 
14-16 
(iv) Laws regulating contribution to political parties 
16-17 
(v) Laws regulating disclosure of political contribution 
by parties and companies 
17-19 
D Electoral Expenditure, Disclosure, and 
Contribution: A Comparative Analysis 
19-35 
(i) United Kingdom 
19-22 
(ii) Germany 
22-25 
(iii) United States of America 
25-28 
(iv) Australia 
28-31 
(v) Japan 
32-34 
(vi) Philippines 
34-35 
E Legal Lacunae and the Under-reporting of 
Election Spending  
35-59 
(i) Understanding the reality of election financing 
today 
35-37 
(ii) Legal lacunae  
37-39 
(iii) Recommendations 
39-53 
F State Funding of Elections 53-59 
(i) History of reform proposals 
54-55 
(ii) Comparative provisions governing public funding of 
elections 
55-57 
(iii) Recommendations 
57-59 
iv 
 
G Recommendations 59-68 
(i) On Expenses and Contribution 
59-60 
(ii) On Disclosure  
60-64 
(iii) On Penalties 
64-67 
(iv) On State Funding of Elections 
68 
III 
REGULATION OF POLITICAL PARTIES 
AND INNER PARTY DEMOCRACY  
69-79 
A History of Reform Proposals 69-70 
B Laws Regulating Internal Democracy 70-72 
C Internal Democracy: A Comparative 
Perspective 
72-76 
 Germany 
72-74 
 Portugal 
74-75 
 Spain 
75-76 
D Recommendations 76-79 
IV 
FROM FIRST PAST THE POST TO 
PROPORTIONAL REPRESENTATION 
80-88 
A The Current System and Its Alternatives 80-81 
B The Merits and Demerits of the FPTP System 
81-84 
(i) Simplicity 
81 
(ii) Stability 
81 
(iii) Representativeness 84 
C Merits and Demerits of Proportional 
Representation 
83-88 
(i) Simplicity 
83 
(ii) Stability 
83 
(iii) Representativeness 
84 
D The List System in Germany 84-85 
E Recommendations of Past Reports 85-87 
(i) Report of the ECI on the fifth General Elections in 
India (1971-72) 
85 
(ii) 
Chief Election Commissioner Shakdher’s proposal  
86 
(iii) 
170th Report of the Law Commission 
86-87 
F Recommendations  87-88 
V 
ANTI DEFECTION LAW IN INDIA 
89-98 
A Introduction 89-91 
B Exceptions to the Law on Defection 91-93 
C Procedure under Paragraph 6 of the Tenth 
Schedule 
93-98 
(i) The role of the Speaker in deciding petitions 
under the Tenth Schedule 
93-95 
v 
 
(ii) History of reform proposals 95-97 
D Recommendation 97-98 
VI 
STRENGTHENING THE OFFICE OF THE 
ELECTION COMMISSION OF INDIA 
99-108 
A Constitutional Protection of all the Members of 
the ECI  
99-101 
B Appointment of the Election Commissioners 
and the CEC 
101-105 
(i) Appointment process 
101-103 
(ii) Comparative practices 
103 
(iii) Recommendations 
103-105 
C Permanent, Independent Secretariat of the ECI 105-108 
VII 
PAID NEWS AND POLITICAL 
ADVERTISING 
109-137 
A A. Introduction 109-111 
B B. Paid News and Political Advertising: 
Defining The Phenomena 
111-112 
C C. Issues and Problems with Paid News and 
Political Advertising 
112-116 
D D. Legal Framework 116-123 
(i) Restrictions on election expenses 
116-118 
(ii) Disclosure provisions 
118-119 
(iii) Pre-certification of political advertisements 
119-120 
(iv) Requirement of maintaining distinction between 
news and advertisement 
120-121 
(v) Media Certification and Monitoring Committee 
(“MCMC”) 
121-122 
(vi) Inclusion of notional expenditure of paid news into 
the election expenses 
122-123 
E Recommendations by Other Studies on Paid 
News 
123-126 
(i) Mandatory disclaimer and separation of editorial 
and management 
123 
(ii) Amendment to the RPA 
124 
(iii) Guidelines for determining paid news 
124-126 
F Constitutional Issues: Article 19(1)(a) and 
Article 19(2) 
126-128 
G A Comparative Perspective 129-132 
(i) The United Kingdom 
129 
(ii) Australia 
129-130 
(iii) Canada 
130 
(iv) ECHR standards on permissibility of such 
130-131