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REFORM OF THE ELECTORAL LAWS (Report No. 170) [1999] INLC 170 (1 May 1999)

 

 

INDEX

                                 

 

 

FORWARDING LETTER

PART I

BACKGROUND OF ELECTORAL REFORMS

CHAPTER I INTRODUCTION
CHAPTER II RELEVANT LEGISLATIVE PROVISIONS
CHAPTER III BACKGROUND OF THE SUBJECT UNDERTAKEN AND COMMISSION’S WORKING PAPER
CHAPTER IV GERMAN LAW ON POLITICAL PARTIES

 

 

PART II

VIEWS OF POLITICAL PARTIES AND INTERESTED PERSONS OBTAINED IN SEMINAR

PART III

ANALYSIS OF VIEWS AND COMMISSION’S CONCLUSIONS

CHAPTER I NECESSITY FOR PROVIDING LAW RELATING TO INTERNAL DEMOCRACY WITHIN POLITICAL PARTIES
CHAPTER II ANALYSIS OF VIEWS AND CONCLUSIONS REGARDING THE LIST SYSTEM
CHAPTER III DEBARRING OF INDEPENDENT CANDIDATES TO CONTEST LOK SABHA ELECTIONS
CHAPTER IV ANALYSIS OF VIEWS AND CONCLUSIONS REGARDING AMENDEMNTS TO THE TENTH SCHEDULE TO THE CONSTITUTION

 

PART IV

CONTROL OF ELECTION EXPENSES

CHAPTER I THE PROPOSAL TO DELETE EXPLANATION 1 TO SECTION 77
CHAPTER II INSERTION OF SECTION 78A (MAINTENANCE, AUDIT AND PUBLICATION OF ACCOUNTS BY POLITICAL PARTIES)
CHAPTER III STATE FUNDING

 

PART V

PROPOSAL REGARDING FRAMING OF CHARGES BY COUNTS AS A NEW GROUND FOR DISQUALIFICATION

 

PART VI

 

CHAPTER I OTHER PROPOSALS IN THE WORKING PAPER
CHAPTER II PROCEDURE VISUALISED FOR PROSECUTION IN CASE OF PERJURY DURING JUDICIAL PROCEEDINGS
CHAPTER III INELIGIBILITY OF CANDIDATES TO CONSTEST ELECTION UNLESS THE CANDIDATE FURNISHES THE PARTICULARS REGARDING THE LAWFUL ASSETS POSSESSED BY HIM, OR HER AND HIS OR HER SPOUSE AND DEPENDENT RELATIONS, AND THE PARTICULARS REGARDING CRIMINAL CASES PENDING HIMSELF OR HERSELF

 

PART VII

NEED FOR URGENT MEASURES TO INSTIL STABILITY IN GOVERNANCE AND FOR IMPROVING THE ELECTORAL SYSTEM

CHAPTER I STABILITY IN GOVERNANCE
CHAPTER II MEASURES FOR IMPROVING THE ELECTORAL SYSTEM

 

PART VIII

AN ALTERNATIVE METHOD OF ELECTION

PART IX

SUMMARY OF RECOMMENDATIONS

 

            LAW COMMISSION OF INDIA

            ONE HUNDRED SEVENTIETH REPORT
        
            ON
        
            REFORM OF THE ELECTORAL LAWS
       
    
       MAY, 1999
        
        
        
        
           D.O.  No.6(3)(35)/95-LC(LS)		29/05/99/09.06.99
        
        
           Dear Shri Ram Jethmalani,
        
           	I am forwarding herewith the 170th  report  on  the

          "Reform of the Electoral Laws."
        
           2.	The  Ministry  of Law, Justice and Company Affairs,
           Government of India had addressed a letter  dated  2/11/95,
   
       requesting   the   then   Law  Commission  to  undertake  a
           comprehensive study of the measures  required  to 
expedite
           the hearing  of  the  election  petitions.   On 3rd August,
           1998, a reminder was sent to and received
 by  the  present
           Law Commission.    Even some time before the receipt of the
           letter dated 3rd August, 1998,
the Commission had suo  motu
           undertaken  a  thorough review of the Representation of the
           People Act, 1951 including
provisions relating  to  hearing
           of election  petitions.    The  underlying objective was to
           make the  electoral
 process  more  fair,  transparent  and
           equitable.   The  effort  was  also  to  reduce the several
           distortions
and  evils  that  had  crept  into  the  Indian
           electoral  system,  to  identify  the areas where the legal
         
 provisions required strenthening  and  improvement  and  to
           suggest    the   requisite   measures   in   that   behalf.
           Accordingly, the Law Commission prepared a  working  paper,
           to which  three  draft  Bills were also enclosed.
 One Bill
           pertained to amending the Constitution of India, the  other
           for amending the Representation of People
Act, 1951 and the
           third to amend the Indian Penal Code.
        
           3.	The  salient features of the working paper included
           inter-alia, introduction of List System, Amendment 
to  the
           Tenth Schedule to the Constitution of India, curtailing the
           expenditure  on  elections,  amendment
 of section 8 of the
           Representation of the People Act, enhancement of punishment
           for electoral offences,  measures
 to  ensure  expenditious
           disposal of election petitions by the High Court, amendment
           of section 97 (1) of
the R.P.  Act, 1951.
        
           4.	The  working  paper  prepared by the Law Commission
           was communicated to all
the recognised  political  parties,
           both  at  the  national  and  state  level,  the  Houses of
           Parliament,
the State Legislatures, to the High Court,  Bar
           Associations,    Election   Commission,   prominent   media
         
 personalities, associations and organisations interested in
           electoral reforms and many other persons.  A  large  number
           of   responses   were   received   from  parties,  persons,
           organisations, associations
           and individuals.
   The  Law  Commission  also  held   four
           seminars  to  elicit  informed  opinion  and  views  of the
           political
parties and responsible members  of  the  public.
           The  first  seminar  was held on 14th November, 1998 at the
       
   India International Centre, the second seminar was held  at
           Thiruvananthapuram, the third seminar was held at Bangalore
           in  the  premises  of  the  National  Law  School  of India
           University and finally  a  National  Seminar  on
 Electoral
           Reforms was held at New Delhi on 23rd-24th January, 1999 at
           Vigyan  Bhavan,  in  association  with
 the  Bar Council of
           India.  Many eminent personalities  including  the  Hon'ble
           Prime   Minister  participated
 in  the  said  seminar  and
           projected their views.

           5.	After thoroughly analysing the views obtained  from
           various  quarters,  the Commission has prepared this report
           on electoral  reforms.    The  report  recommends
  various
           measures  which  are essential to make our electoral system
           more representative, fair and  transparent,
 to  strengthen
           our   democracy,  to  arrest  and  reverse  the  prcess  of
           proliferation and splintering of
political parties  and  to
           introduce stability  in  our  governance.    With a view to
           achieve the said objectives,
we have suggested inclusion of
           a chapter  regulating  the  formation  and  functioning  of
           political  parties,
 particularly  with  a  view  to ensure
           internal democracy.  The Commission has  examined  in-depth
           the necessity
of introducing the List System in the country
           and has  made  recommendations  accordingly.    The  law of
           defections
 contained  in  the  Tenth   Schedule   to   the
           Constitution has also been revised; it is now proposed that
        
  a  pre-election front/coalition of political parites should
           be treated as a "political party" for the purposes
 of  the
           Tenth Schedule.  The Commission has also suggested that any
           political  party  which  receives less
than 5% of the total
           valid votes cast in the general election to the  Lok  Sabha
           or  to  a  State  Legislative
Assembly, as the case may be,
           shall  not  be  entitled   to   any   seat   in   the   Lok
           Sabha/Legislative
 Assembly,  even  if it wins any seat(s).
           The Commission has also opined that the time  is  now  ripe
           for barring
indepndent candidates from contesting elections
           for  Lok  Sabha  and  Legislative  Assemblies  and has made
         
 recommendations accordingly.  The reasons for these several
           measures have been stated elaborately in our Report.
   
    
           6.	The Commission has also reiterated its proposal  to
           delete Explanation-I  to  section  77(1)  of the
R.P.  Act,
           1951,  which  has  been  strongly  criticised  in   several
           judgements of the Supreme Court and
all discerning persons.
           We  have also recommended enactment of provisions requiring
           the political  parties
 to  maintain  accounts,  have  them
           audited and  file  them before the election Commission.  On
           State Funding
of  political  parties,  the  Commission  has
           reiterated   the  recommendations  in  the  Inderjit  Gupta
           Committee
report subject to certain reservations set out in
           paragraph 4.3.4.  of our Report.  Similarly provisions  are
       
   in vogue in several other democratic countries.
        
           7.	The Commission has also recommended that in case of
  
        electoral  offences  and  certain  other  serious offences,
           framing of a charge by the Court should itslef be
a  ground
           of disqualification  in  addition  to  conviction.   It has
           reiterated several other proposals set
out in working paper
           except with regard to  raising  deposits  in  the  case  of
           independent candidates.  
  The  raising  of  deposits  for
           independents  is  unnecessary  in   view   of   our   other
           recommendations
 to  bar  the  independents  altogether and
           permitting only political parties  (whether  recognised  or
           not)
 to  contest  elections  subject to the requirement of
           obtaining 5% of the total valid votes cast to  enable  them
  
        to get a seat in Lok Sabha/State Assembly.
        
           8.	The  Commission  has,  with  a  view to check false
  
        complaints, proposed to amend the  relevant  provisions  of
           the Criminal Procedure Code.
        
           9.
In  the  interest  of  transparency,  we  have also
           suggested  provisions  making  it  obligatory  upon   every
     
     candidate  to declare the assets possessed by him or her or
           by  his/her  spouse  and  dependent   relations   and
  the
           particulars   regarding   criminal  cases  pending  against
           him/her, in the nomination paper itself.
        
           10.	We  have  also  suggested  measures  for   ensuring
           stability of governments.  One of the measures
suggested is
           a new rule, Rule 198A in the Rules of Procedure and Conduct
           of Business  in  Lok Sabha.  We have
stressed the necessity
           of having one election once in five years for Lok Sabha  as
           well  as State Assemblies
and made some suggestions in that
           behalf.
        
           11.	We have also set out the desirability  of  adopting
           the  rule  requiring  that  ony a candidate obtaining 50%+1
           votes will  be  declared  elected  and  the  holding
 of  a
           "run-off" election  wherever  necessary.    The  concept of
           negative vote also has been discussed
and  recommended  for
           consideration.
        
           12.	The Commission is of the considered view that there
    
      is   urgent   and   crying   necessity   to  implement  the
           afore-mentioned measures to reform the electoral system
and
           to strengthen the democracy in our country.
        
        	With regards,	
        					Yours sincerely,
      
 
        
        
        				    (B.P.  JEEVAN REDDY)
        
        Shri Ram Jethmalani,
        Minister for Law, Justice &
        Company Affairs,
        Shastri Bhavan,
        New Delhi.
        
          PART I
          Background of Electoral Reforms
          CHAPTER I
          INTRODUCTION
           
           
           1.1.1.	The preamble to be Constitution of  India  declares
           that  the people of India
have resolved to constitute India
           into a sovereign democratic  republic  with  the  four-fold
           objective,  namely,
 to secure to all its citizens, justice
           social,  economic  and  political;  liberty   of   thought,
           expression,
 belief,  faith and worship; equality of status
           and  of  opportunity  and  to  promote   among   them   all
         
 fraternity, assuring  the  dignity  of  the individual.  As
           would be evident from the provisions in Part V and Part 
VI
           of  the  Constitution,  we have established for ourselves a
           parliamentary form of government patterned on
 the  British
           model.   In  a  parliamentary democracy, there is no formal
           separation  between  the  Parliament
 and   the   political
           executive (Council  of Ministers).  The political executive
           is a part and parcel of
the Parliament and  is  drawn  from
           it.  The party or the group of parties which has a majority
           in  the  lower
 House or which enjoys the confidence of the
           lower House, is  invited  by  the  President  to  form  the
           government.
  In other words, in a parliamentary democracy,
           the political executive is  not  elected  as  such  by  the
         
 people.   Even the President, the titular Head of the State
           is not elected by the people directly but by the Members
of
           the Parliament and the State Legislatures.  It is for  this
           reason  that  the  Supreme  Court  has held
repeatedly even
           before the enactment  of  the  Constitution  (Forty-Second)
           Amendment Act,  1976,  in  Ram
 Jawaya  Kapur  v.  State of
           Punjab (AIR 1955 SC 549) and in Samsher Singh v.  State  of
           Punjab  (AIR  1974
 SC  2192)  that  the  position  of  the
           President under our Constitution is  akin  to  the  British
           Monarch.
  In  other  words, he is a constitutional head of
           the State.  The real governing power vests in the political
      
    executive.  Similar is the position in  the  States.    The
           system  obtaining  in this country is wholly different
from
           the one obtaining in the United States of America where the
           executive, namely, the President is elected
directly by the
           people just as the Legislature (Congress) is elected by the
           people directly in a separate election.
 In such  a  system
           of  government,  the governing power is distributed between
           the President and the Congress
and the political  executive
           is   not   drawn   from   the   Legislature  whereas  in  a
           parliamentary form
of government like ours,  the  political
           executive  (Council  of Ministers) is drawn from Parliament
           and is
answerable to the Parliament  for  exercise  of  its
           powers.
           
           1.1.2.	Whether  in a parliamentary
form of government or a
           Presidential form, indeed in every democracy,  the  process
           of   election   should
  be   free,   fair  and  equitable.
           Fortunately, our Constitution and the Representation of the
           People Act,
1950 and Representation of the People Act, 1951
           to seek to  provide  for  a  free  and  fair  election  but
         
 problems  have  been  arising  in this regard on account of
           division in our polity on the  basis  of  religion,  caste,
           language, region  and  race.   [Free and fair elections are
           the  very  foundation  of  democratic  institutions
  (P.R.
           Belagali v.   B.D.    Jatti, AIR 1971 SC 1348; Indira Nehru
           Gandhi v.  Raj Narain, AIR 1975 SC 2299;
and Mohinder Singh
           Gill v.  The  Chief  Election  Commissioner,  AIR  1978  SC
           851)].   However  there  has
been a steady deterioration in
           the  standards,  practices  and   pronouncements   of   the
           political class,
 which fights the elections.  Money-power,
           muscle-power, corrupt practices and unfair means are  being
           freely
employed  to  win  the  elections.   Over the years,
           several measures have been taken by Parliament to amend the
    
      laws relating  to  elections  with  a  view  to  check  the
           aforementioned forces.      This  report,  which  has
 been
           prepared after extensive consultations, is a  step  in  the
           said process.  It is hoped that Parliament
will take prompt
           action to give them legislative imprimatur.
           
            CHAPTER II
            Relevant Legislative Provisions
           
           1.2.1.	Part XV of the Constitution deals  with  elections.
           It  contains  six  articles  viz., 
articles  324  to  329.
           Article 324 declares that  the  superintendence,  direction
           and  control of the preparation
of electoral rolls for, and
           the conduct of, all elections  to  Parliament  and  to  the
           Legislature  of every
State and of elections to the offices
           of   President   and   Vice-President   held   under    the
           Constitution,
 shall  be vested in the Election Commission.
           Article 325  declares  that  there  shall  be  one  general
           electoral
 roll  for  every  parliamentary constituency for
           election to either House of Parliament or to the  House  or
       
   either  either House of the Legislature of a State and that
           no person shall be ineligible for  inclusion  in  any 
such
           roll  or claim to be included in any special electoral roll
           for any such constituency  on  grounds  only
 of  religion,
           race, caste,  sex  or  any of them.  This article read with
           article 326 confers a right  upon
 every  citizen  of  this
           country  to  be  included in the electoral roll provided he
           has completed 18 years
of age on the specified date and  is
           not  otherwise  disqualified under any of the provisions of
           the Constitution
or any  law  made  by  Parliament  or  the
           appropriate Legislature.    Article 327 empowers Parliament
           to provide
by law with respect to all matters relating  to,
           or  in  connection  with,  elections  to  either  House  of
        
  Parliament  or  to  the  Houses  of  either  House  of  the
           Legislature   of  a  State  including  the  preparation
 of
           electoral rolls, the delimitation of constituencies and all
           other matters necessary for securing the  due
 constitution
           of such  House  or  Houses.    This power, the article says
           clearly, can be exercised by Parliament
from time  to  time
           subject to the provisions of the Constitution.  Article 328
           confers  a similar power upon
the Legislature of a State in
           so far as a  provision  in  that  behalf  is  not  made  by
           Parliament.   Article
 329 creates a bar to interference by
           courts in electoral matters.  Clause (a) declares that  the
           validity
 of  any  law  relating to the delimitation of the
           constituencies  or  the  allotment   of   seats   to   such
      
    constituencies, made or purporting to be made under article
           327 or  328   shall not be called in question in any court.
           Clause (b) declares that no election  to  either  House  of
           Parliament  or  to the House or either House of
Legislature
           of a State  shall  be  called  in  question  except  by  an
           election  petition presented to prescribed
authority and in
           the prescribed manner.
           
           1.2.2.	Pursuant to article  325  to  327,  Parliament 
has
           enacted  the  Representation  of  the  People Act, 1950 and
           Representation of the People  Act,  1951  (besides
 certain
           other  minor  enactments and orders) which cover the entire
           gamut of elections to Parliament and State
Legislatures.
           
            CHAPTER III
            Background of the subject undertaken
          and Commission's Working Paper
           
           1.3.1.	It appears that in 1995, the Government of India in
           the  Ministry  of  Law,  Justice  and
 Company  Affairs had
           addressed a letter dated 2.11.1995 requesting the then  Law
           Commission  to  undertake
 a  comprehensive  study  of  the
           measures required to expedite the hearing of  the  election
           petitions.  
 The   present   Law   Commission   (15th  Law
           Commission)  which  was  constituted  towards  the  end  of
          
November  1997  came  to know of the said letter much later
           i.e.  on receipt of a letter from  the  Minister  for  Law,
           Justice  and  Company  Affairs dated 3rd August 1998 asking
           for a report on the above subject at an early date.
  As  a
           matter  of  fact,  some time before the receipt of the said
           letter, the present Law Commission had,
suo motu,  embarked
           upon  a thorough review of the Representation of the People
           Act, 1951  including  provisions
 relating  to  hearing  of
           election petitions.    The study was undertaken with a view
           to making the electoral
process more fair, transparent  and
           equitable.   The effort was also to reduce, if not curtail,
           the several
distortions and evils that had crept  into  the
           India  electoral  system,  to  identify the areas where the
         
 legal provisions required strengthening and improvement and
           to  suggest  the  requisite  measures   in   that   behalf.
           Accordingly,  the  Law  Commission prepared a working paper
           (Annexure-B) to which were enclosed three draft
Bills,  one
           for  amending  the  Constitution  of  India,  the other for
           amending the Representation of People
 Act,  1951  and  the
           third to  amend the Indian Penal Code.  While preparing the
           working  paper  and  the
 accompanying   Bills,   the   Law
           Commission  took  into  consideration  the  Bill  which was
           prepared in
1990 by the late Shri Dinesh Goswami, the  then
           Minister  for  Law, Justice and Company Affairs, based on a
         
 consensus arrived at between  all  the  political  parties.
           Indeed,  we  took  the  said Bill as the starting point and
           suggested various other measures which in our opinion  were
           called for  to  achieve  the aforementioned objectives.
 We
           also took into account a brochure published by the Election
           Commission of  India  containing  various 
suggestions  for
           amending  the Representation of the People Act, 1951 Notice
           was also taken of several decisions
of the Supreme Court on
           various provisions of the Representation of the People Act,
           1951 hereinafter referred
to as the R.P.Act.   The  salient
           features of the working paper were the following:
           
           1.3.2.	Introduction
of  the  List   System.      The   Law
           Commission    took    note    of    the   fact   that   the
           `first-past-the-post'
system prevailing in our country  had
           given  rise  to  several  inequities and distortions in our
           electoral
 process   particularly   on   account   of   the
           multiplicity of  the  political parties.  There are certain
       
   States in India where there are three  or  four  recognised
           political parties, more or less evenly balanced.  In such
a
           situation  what  is happening is that the winning candidate
           is receiving, in many cases, 30% or less of the
valid votes
           cast.  The remaining 70% or  more  votes  polled  (cast  in
           favour  of  the defeated candidates
including independents)
           are practically going waste,  without  representation,  and
           without  a  voice  in 
the  representative  bodies, namely,
           Parliament and  the  State  Legislatures.  It  was  thought
           advisable
 to  provide  a voice and a representation to the
           wasted votes which indeed very often constituted a majority
       
   of the total votes cast.
           
           1.3.2.1.  Another consideration in this behalf was that the
           first-past-the-post
 (FPP)  system  now  in  vogue  is  not
           yielding a correct picture of the voter  preferences.    In
           other 
words,  there is no commensurality between the total
           votes cast in a State or in the country, as  the  case  may
    
      be, and  the  seats  obtained  by  the parties.  To be more
           precise, what is happening is that a political party
 which
           has  received,  say,  32%  of  the  total votes case in the
           country is  obtaining  70%  of  the  seats
 in  Parliament,
           whereas  another political party which has polled, say, 29%
           of the votes, is getting 25% of
the seats in Parliament.  A
           `swing' of 2 to 3 per cent votes is  resulting  in  a  huge
           difference in the number
of seats won.
           
           1.3.3.2.  There was yet another situation where a political
           party is polling a substantial
chunk of  votes  cast  in  a
           given  State  in parliamentary elections but is not able to
           get a single seat
in the Parliament from that State.
           
           1.3.2.3.   With  a  view  to  rectifying and redressing the
          
aforementioned  distortions   and   inequities,   the   Law
           Commission  was of the provisional opinion that introducing
           a List System  may  serve  to  redress  the  aforementioned
           distortions, at  least  to  a  partial  extent.
   For this
           purpose, we looked to the  electoral  system  obtaining  in
           certain  other  countries  including
 Germany where a mixed
           system (FPP and list system) is in force.  In Germany, part
           of the seats   are  filled
 on  the  basis  of  FPP  system
           whereunder    the  members  are  elected  from  territorial
           constituencies
and the remaining members  are  chosen  from
           the lists put forward by the political parties.  We did not
           however
 think  it  advisable  to  import the German system
           whole-hog for it was found to be extremely complicated  and
     
     difficult  of  operation  in  a  country  like ours where a
           sizeable chunk of population is illiterate and is not
 able
           to operate such a complicated electoral system.
           
           1.3.2.4.  We thought of finding a system
more suited to our
           genius  and  to  the  conditions prevailing in our country.
           Though it would have been advisable
to suggest that 50%  of
           the   number   of  members  in  Lok  Sabha  or  Legislative
           Assemblies of the States
should be filled on the  basis  of
           list  system,  we  pegged it at 25%, not only as a starting
           point, but also
with a view not to give room for growth of,
           or encouragement to, caste-based political parties.  We did
           not
 wish  to  encourage  in  any  manner  the  caste-based
           political  parties  or  the  voting patterns based on caste
 
         considerations.
           
           1.3.2.5.  Accordingly, it was suggested  that  in  the  Lok
           Sabha  as
 well as in the State Legislative Assemblies, the
           present strength should be increased by 25% of the existing
       
   strength which increased strength should be filled  on  the
           basis of  list  system.  The list system was to be confined
           only to recognised political parties (RPP).  There would be
           no separate vote nor a separate election for the
members to
           be chosen under the list system.
           
           1.3.2.6.   It  was suggested that each recognised political
           party should put forward its list of candidates, which will
           be received, scrutinised and  valid  list  published
 along
           with  the  nominations  for  elections from the territorial
           constituencies.  It was suggested that 
for  this  purpose,
           `territorial  units'  be  designated;  so far as the bigger
           States are concerned, each
State  shall  be  a  territorial
           unit but in the case of small States, they should either be
           clubbed  with
 an  adjacent  bigger  State  or  be  clubbed
           together to  form  a  territorial  unit.    (This  idea  of
           territorial
 units  was suggested to be adopted only in the
           case of parliamentary general elections and not in the case
         
 of elections to the State  Legislatures.)  At  the  end  of
           polling   and   counting   of  votes  for  the  territorial
           constituencies, the Election Commission, it was  suggested,
           should  tabulate  votes  polled  by  each  RPP
 in  a given
           State/territorial unit and the seats meant to be filled  up
           under  the  list  system  be  distributed
among the RPPs in
           proportion to the votes polled by them.  For achieving  the
           said  purpose, it was found necessary
to amend not only the
           Representation of the People Act, 1951 but the Constitution
           of India itself in the first
instance.    Accordingly,  the
           suggested  amendments both to the Constitution of India and
           the Representation
of People Act, 1951 were  shown  in  the
           Bills accompanying the working paper.
           
           1.3.2.7. Another
connected suggestion was to delete article
           331  of  the  Constitution  which empowers the President to
           nominate
two members of Anglo-Indian community to  the  Lok
           Sabha.  It was explained that this provision which may have
      
    been  good  when  the  Constitution was enacted, has become
           irrelevant with the  substantial  fall  in  the  number
 of
           Anglo-Indians  over  the  years  and  in  the  light of the
           miniscule number of this community obtaining
today.
           
           1.3.3.	Amendment   to   the   Tenth   Schedule   to    the
           Constitution.   The  Tenth Schedule
to the Constitution was
           inserted by the Constitution (Fifty-second Amendment)  Act,
           1985.   The  Schedule 
provides  for  disqualification of a
           member  of  Parliament  of  a  State  Legislature  in   two
           situations,
 namely  (a)  if  he  voluntarily  gives up his
           membership of  political  party  on  whose  ticket  he  was
         
 elected  and  (b)  if  he  votes  or  abstains from voting,
           without prior  permission  of  the  party,  in  such  House
           contrary  to any direction issued by the political party on
           whose ticket  he  has  been  elected  and  such
 voting  or
           abstention  has  not  been condoned by such political party
           within 15 days from the date of voting
of abstention.   The
           Schedule  however  introduced  in  paragraph  3 thereof the
           concept of `split'.  In short,
the paragraph provided  that
           if  not  less  than  1/3rd members of the legislature party
           defect, the disqualification
provided in paragraph 2  shall
           not operate.    Paragraph  4  provided  that  the  rule  of
           disqualification
in paragraph 2 shall not apply  where  two
           or more  political  parties merge.  Paragraph 5 provided an
           exemption
 in   favour   of   Speaker/Deputy   Speaker   of
           Chairman/Deputy  Chairman,  as  the  case  may be, from the
       
   operation of paragraph 2.  Paragraph  6  provided  that  in
           case  of dispute on the question of disqualification on
the
           ground of defection, the  same  shall  be  decided  by  the
           Speaker or  the Chairman of the House concerned.
 Paragraph
           7 barred the jurisdiction  of  the  courts  in  respect  of
           matters  connected with the disqualification
of a member of
           a House under the said  Schedule.    (This  paragraph  has,
           however,  been  declared  unconstitutional
 by  the Supreme
           Court in Kihota v.  Zachilhu (AIR 1993 SC 412).   Paragraph
           6 provided for rules to be made
to carry out the objects of
           the Schedule.
           
           1.3.3.1.   The  experience  of  this country with the
Tenth
           Schedule since its introduction has not been happy.  It has
           led to innumerable abuses and undesirable
practices.  While
           the idea of disqualification on the basis of defection  was
           a  right  one,  the  provision
relating to `split' has been
           abused beyond recall.  It was accordingly suggested  by  us
           that  paragraphs 
3  and  4  should  go altogether with the
           result that paragraph  2  alone  remains  (along  with  the
           exemptions
in paragraph 5).  The underlying idea was that a
           person  elected  on  the ticket of a political party should
        
  remain with it during the life of the House  or  leave  the
           House.   It  was  also suggested by the Law Commission that
           the decision on the question of disqualification under  the
           said  Schedule should be entrusted to the President
(in the
           case of Parliament) and to the Governor  (in  the  case  of
           State  Legislature)  who  shall  render
 their  decision in
           accordance with the  opinion  of  the  Election  Commission
           which shall be consulted in
that behalf.
           
           1.3.3.2.   For  achieving  the  said  objective,  necessary
           amendments to the Tenth
Schedule to the  Constitution  were
           appended to  the  working  paper.    We  are also proposing
           herein amendments
to articles  102(1)  and  191(1)  of  the
           Constitution  which  are  necessary  to  give effect to our
           recommendations.
 The amendments  in  articles  102(1)  and
           191(1) are to the following effect:-
           
           (1)	In clause (1)
of article 102, after sub-clause (e),
           the following sub-clause (f), shall be inserted before  the
           Explanation
-
           
            "(f)  if  he is disqualified for being  a member of
                   either  House  of  Parliament
  under   the   Tenth
                   Schedule."
           
           (2)	Clause (2) to article 102 shall be deleted.

          
           	Similarly, in  article    191(1), sub-clause (f) as
           follows shall be added after sub-clause (e)
but before  the
           Explanation:-
           
            "if  he  is  disqualified  for  being  a  member of
      
            Legislative Assembly or Legislative  Council  of  a
                   State under the Tenth Schedule"
        
  
           (2)	Clause (2) to article 102 shall be deleted.
           
           1.3.4.	Curtailing the  expenditure on elections.
 The next
           major proposal put forward by the Law Commission  pertained
           to  reducing  the  expenditure  on  elections
 and  also to
           regulate the receipts  and  expenditure  by  the  political
           parties.  The issue of State funding
was also considered in
           this context.    The  first  proposal in this behalf was to
           delete Explanation 1 to
section 77 of the Representation of
           the People Act, 1951.  Besides the abuse  inherent  in  the
           said  Explanation,
it was pointed out that the necessity of
           deleting the  Explanation  had  been  pointed  out  by  the
           Supreme
 Court  in  several  decisions  including C.Narayan
           Swami v.  C.K.Jaffar Sheriff [1994 Supp.  (3) SCC 170]  and
     
     Gadakh Yashwantrao  Kanakarrao  v.    Balasaheb Vikhe Patil
           [1994 (1) SCC 682].  It was pointed out in these  decisions
           that  the  corrupt  practice of incurring or authorising of
           expenditure in contravention of sub-section (6)
of  section
           123   has  lost  its  significance  and  utility  with  the
           introduction of Explanation  1  to
 section  77.    It  was
           further  pointed  out  by  the  court  that the Explanation
           violates the spirit of
the Act and  a  hope  was  expressed
           that  the  Parliament  would delete the said Explanation as
           early  as
 possible  to  remove  the  impression  that  the
           enactment  and retention of the same was deliberate and was
       
   inspired by motives which could not be said to be  genuine,
           democratic or sufficiently justifiable.  The Law Commission
           had  also  referred  in extenso in its working paper to the
           decision of Supreme Court in Kanwarlal Gupta v.
   Amarnath
           Chawla  (1975  (3)  SCC  646),  to  get over which decision
           indeed, Explanation 1 was enacted.
 The suggestion  of  the
           Law  Commission  was  that  deletion of Explanation 1 would
           bring the legal position
in conformity with the  ruling  in
           Kanwarlal Gupta's case.
           
           1.3.4.1.The   second  suggestion  in
 this  behalf  was  to
           introduce  provisions  making  it   obligatory   upon   the
           political  parties to maintain
regular accounts clearly and
           fully recording therein all amounts received  by  them  and
           all  expenditure 
incurred,  as is the legal requirement in
           Germany.  It was further suggested that the  said  accounts
           should
 be duly got audited at the end of each year and the
           audited  accounts  submitted  to  the  Election  Commission
    
      before the prescribed date every year.  Election Commission
           was  required  to  publish  the  said  accounts  for
public
           information.   This  proposal  was  made  to  introduce  an
           element  of  transparency  and  openness
 in  the financial
           matters of the political  parties  and  is  backed  by  the
           judgment of  the Supreme Court
in Gajanan Bapat v.  Dattaji
           Meghe (1995 SCC 347).  The  said  decision  emphasised  the
           desirability   and
  necessity  of  the  political  parties
           maintaining true and correct account of their receipts  and
           expenditure
 including  the  disclosure  of  the sources of
           receipt.  It was pointed out in the decision that this  was
         
 essential  to ensure the purity of elections and to prevent
           money from influencing the outcome of elections.    It  was
           pointed out by the Law Commission in its working paper that
           the aforesaid provisions in conjunction with the
provisions
           contained  in  section  29A, would advance the objective of
           ensuring purity of elections by preventing
the money-power,
           in particular black money-power and  money  collected  from
           suspect sources from influencing
the elections.
           
           1.3.4.2.   The  third  proposal in this behalf pertained to
           State funding.  On this
aspect, we  merely  reproduced  the
           provisions  contained  in the Bill prepared by the then Law
           Minister, late
Shri Dinesh Goswami in 1990 since they  were
           based   upon  a  consensus  among  the  political  parties,
           inviting
at the same time the response of all concerned and
           informed citizenry to the said proposal.
           
           1.3.5.
   Amendment   of   section  8  and  enhancement  of
           punishment for electoral offences.  The next major proposal
    
      put forward in the working paper prepared and circulated by
           the Law Commission pertained to amendment of section
8  and
           of  sections  127(1), 134B(2), 135(1), 136(2) and insertion
           of a new section 126A in the Act.  It  was
 also  suggested
           that  punishments prescribed by several sections in chapter
           IXA of the Indian Penal Code 1860
should be enhanced.   All
           the  above  sections in the Act as well as the Indian Penal
           Code are election offences
and quite serious too.  The main
           purpose behind the suggested amendments was to provide  (a)
           that  framing
of charges by the court should by itself be a
           ground for disqualifying a person from  being  a  candidate
           for
 election  and  (b) to enhance the punishments provided
           for election offences contained in  the  Representation  of
 
         People  Act,  1951 and chapter IXA of the Indian Penal Code
           so as to attract the procedure prescribed in  the
 Criminal
           Procedure Code  for  trial  of  warrant  cases.   It may be
           remembered that framing of charges  is
 obligatory  in  the
           warrant cases  but  not  in summons cases.  (In the case of
           offences triable according
to the procedure prescribed  for
           trial  of summons cases, framing of charges lies within the
           discretion of
the court and is not obligatory.)  The  above
           proposal  was  put  forward  for  the  reason  that persons
           indulging
in election offences are usually persons powerful
           in political field and who command money  and  muscle-power
       
   with  the  result  that  no witness comes forward to depose
           against them.  Since no independent witness  comes  forward
           to  depose  against  such persons, the prosecution launched
           against them inevitably ends in discharge or acquittal,
 as
           the case  may  be.  Indeed, a similar proposal was also put
           forward sometime ago by the Election Commission
 too.    It
           may  be clarified that the aforesaid amendment was proposed
           only in sub-section (1) of  section
 8  and  not  in  other
           sub-sections of section 8.
           
           1.3.6.	Other  proposals.  The other proposals
contained in
           the working paper pertained to (a) enhancing the deposit in
           the  case  of  independent  candidates
 and  candidates  of
           unrecognised political  parties.  This substantial increase
           was suggested with a view
to  discourage  independents  and
           non-serious  candidates  from  contesting elections thereby
           making the elections
cumbersome, expensive and unmanageable
           - indeed, farcical in some cases;  (b)  steps  designed  to
           ensure 
expeditious  disposal  of election petitions by the
           High Court.  The Law Commission  did  not  agree  with  the
     
     suggestion  of  the  Law  Ministry  to entrust the trial of
           election petitions to special tribunals instead of the
High
           Courts.  It was pointed out in the working paper that  such
           an  experiment was undertaken earlier and
was given up as a
           failure and that only thereafter was the trial of  election
           petitions  entrusted  to  High
 Courts;  (c)  amendment  of
           section 97(1) of the Act in the light of  the  decision  of
           the  Supreme  Court
 in Bhagmal v. Prabhu Ram (AIR 1985 SCC
           150) and (d)  certain  other  amendments  set  out  in  the
           working
paper.
           
            CHAPTER IV
            German Law on Political Parties
           
           	Whether  by design or by omission, our Constitution
           does not provide for the constitution and 
working  of  the
           political  parties,  though  they  are  at  the  heart of a
           parliamentary democracy.  A parliamentary
democracy without
           political parties is inconceivable.  Yet  the  Constitution
           (except  the  Tenth Schedule
which was inserted only in the
           year 1985) does not even speak of political parties whereas
           article 21 of the
German Constitution (Basic  Law  for  the
           Federal  Republic of Germany, 1949), which Constitution was
           also
enacted almost simultaneously with  our  Constitution,
           provides for the establishment and working of the political
  
        parties.  The Article reads thus:

           	"Article 21 (Parties)

            (1)  The parties shall help form the
political will
                   of the people.  They  may  be  freely  established.
                   Their   internal   organisation
 shall  conform  to
                   democratic principles.  They shall publicly account
                   for the sources and
use  of  their  funds  and  for
                   their assets.

            (2)   Parties  which by reason of their aims or the
                   conduct of their adherents seek  to  impair  or  do
                   away  with  the  free  democratic  basic
 order  of
                   threaten the existence of the Federal  Republic  of
                   Germany shall  be  unconstitutional.
   The Federal
                   Constitutional Court  shall rule on the question of
                   unconstitutionality.

 
          (3)  Details shall be the subject of federal laws."

           1.4.1.1. Pursuant to article 21(3), the  German  Parliament
           has  enacted  the  `Law  on  Political Parties' in the year
           1967, which has been amended from time to time.
 Section  1
           of the  Law sets out "General Provisions".  Article 1 which
           deals with the constitutional
status and functions  of  the
           parties, reads thus:

            "Article 1.  Constitutional Status and Functions
of
                   the Parties.

            (1)   Political  parties  form  a  constitutionally
                   integral part
of a free and  democratic  system  of
                   government.      Their    free    and    continuous
                   participation
in the  formation  of  the  political
                   will  of  the  people enables them to discharge the
                   public
tasks which are incumbent upon them pursuant
                   to the Basic  law  (Grundgestez))  and  which  they
            
      undertake to fulfil to the best of their ability.

            (2)  The parties shall participate in the formation
       
           of  the  political will of the people in all fields
                   of public life, in particular by:
            bringing
their influence to bear on the shaping  of
                   public  opinion; inspiring and furthering political
              
    education;
            promoting an  active  participation  by  individual
                   citizens   in  political  life;
 training  talented
                   people to assume public responsibilities;
            participating in Federal, Land and Local
Government
                   elections by nominating candidates;
            exercising an  influence  on  political  trends  in
                   parliament and the government;
            initiating  their  defined  political  aims  in the
              
    national decision-making  processes; and 
            ensuring continuous, vital links between the people
                  
and the public authorities.
           
            (3)  The parties shall define  their  aims  in  the
                   form of
political manifestos.
           
            (4)   The parties shall use their funds exclusively
                   for the fulfilment
of their obligations  under  the
                   Basic Law and this Law."
           
           1.4.1.2.   Article  2  defines
 the  expression  "Political
           Party". It reads thus:

            "Article 2.   Definition  of  the  term
 "Political
                   Party".

            (1)  Parties  are  associations of citizens who set
              
    out  to  influence  either  permanently  or  for  a
                   lengthy  period of time, the formation of political
 
                 opinions  at  Federal  or   Land   level   and   to
                   participate  in the representation of the
people in
                   the  Federal  Parliament  (Bundestag)  or  regional
                   parliaments  (Landtage)  provided
 that  they offer
                   sufficient guarantee of the sincerity of their aims
                   in the general character
of their circumstances and
                   attendant conditions, particularly in regard to the
                   size and strength
of their organisation, the number
                   of  registered  members  and  their  public  image.
                   party
members may only be natural persons.
           
            (2)   An  organisation  loses its legal status as a
               
   party if it has not participated for  a  period  of
                   six years in either a Federal election or a Landtag
  
                election with electoral proposals of its own.
           
            (3)   Political  organisations are not deemed
to be
                   parties if;
           
            1. most of their members or the  members  of  their
               
   executive committees are foreigners; or
            2.   the  registered  seat  of  business is located
                   outside
the purview of the present Law."
           
           1.4.1.3.  Article  3  empowers  the  political  parties  to
       
   institute legal proceedings in their own name and similarly
           be sued in their own name.
           
           1.4.1.4.
article 4 provides that the name of a  party  must
           be  clearly  distinguishable  from  that  of other existing
      
    parties and that this rule is also applicable to  acronyms.
           In   election   campaigns   and  the  elections,  only
 the
           registered name or acronym may be used.
           
           1.4.1.5. Article 5 provides for equal treatment of
all  the
           political parties.  It reads as under:
           
            "Article 5.  Equality of Treatment.
    
      
            (1) Where a public authority provides facilities or
                   other public services for use by a party,
 it  must
                   accord equal  treatment  to all other parties.  The
                   scale  of  such  facilities 
and  services  may  be
                   graduated  to  conform  with  the importance of the
                   parties  to  the
 minimum  extent  needed  for  the
                   achievement of  their  aims.    The importance of a
                   party
is judged in particular from the  results  of
                   previous   elections   for   central   or  regional
           
       government.  In the case of a party represented  in
                   the   Bundestag   by  a  parliamentary  party,  the
                   significance accorded to it must amount to at least
                   half that granted to any other party.

          
            (2) As regards the granting of public  services  in
                   connection  with  an election para
(1) applies only
                   for  the  duration  of  the  election  campaign  to
                   parties which have submitted
election proposals.
           
            (3)   The public services referred to in para 1 may
                   be made dependent
upon certain preconditions  which
                   all parties have to fulfil.
           
            (4) Section IV shall remain
unaffected."
           
           1.4.1.6.   Section  II  deals with internal organisation of
           the political parties.
 Article 6 is of great  significance
           and may be set out in full:
           
            "Article 6.  Statutes and
Programme.
           
            (1)  A party must have written  statutes  (articles
                   of association)  and a
written programme.  Regional
                   organisations conduct their affairs on the basis of
                   their own
statutes provided that  the  statutes  of
                   their immediately superior regional organisation do
               
   not contain any provisions bearing on this matter.
           
            (2)  The Statutes must contain provisions on:
    
       1.  The  name and acronym (if used), the registered
                   seat and the activities of the party.
            2.
The admission and resignation of members.
            3. The rights and duties of members.
            4. Admissible disciplinary
measures against members
                   and their exclusion from  the  party  (Article  10,
                   paras 3 to 5).
            5.    Admissible   disciplinary   measures  against
                   regional organisations.
            6.  The general
organisation of the party.
            7.  Composition  and  powers   of   the   executive
                   committee and other
organs.
            8.   matters  which  may  only be decided upon by a
                   meeting of members ad representatives
 pursuant  to
                   No.9.
            9.   The  preconditions,  form  and  time limit for
                   convening
meetings of members  and  representatives
                   and the official recording of resolutions.
            10.  Regional
 organisations  and  organs which are
                   authorised to submit or sign election proposals for
                   elections
to parliaments inasmuch as three  are  no
                   relevant legal provisions.
            11.  An  overall  vote by members
and the procedure
                   to  be  adopted  when  the  party  or  a   regional
                   organisation  or  to
 merge  with  another party or
                   parties pursuant to Article 9, para 3.  The  result
                   of the 
 overall   vote     determine  whether  the
                   resolution is confirmed, amended or rescinded.
            12.   The
form and content of a financial structure
                   which satisfies the rules of Section V of this Law.
           
   
        (3) The executive  committee  informs  the  Federal
                   Returning Officer of:
            1. The party's statutes
and programme.
            2.  The  names  of  the  members  of  the executive
                   committee   of   the   party  
and   its   regional
                   organisations together with their duties.
            3.  The  dissolution  of  the  party
 or a regional
                   organisation.  Amendments to sentence 1(1) and  (2)
                   above  must be notified
by 31 December of the given
                   calender year.  The relevant documents are held  by
                   the Federal
Returning Officer and made available to
                   the public   for   perusal   and  inspection.    On
                 
 request, copies of the documents are provided  free
                   of charge.
           
            (4) Parties whose organisation
is restricted to the
                   territory  of a Land are governed by the provisions
                   set out in the present
Law for parties as a whole."
           
           1.4.1.7. Article 7 deals with the organisation of political
           parties
both at the national and regional level.
           
           1.4.1.8.   Article 8 provides that the members' meeting and
    
      the executive  committee  shall  constitute  the  essential
           organs  of the party and its regional organisations
and for
           other allied matters.
           
           1.4.1.9.  Article 9 provides for constitution  of  members'
    
      assemblies  and  delegates assemblies and the rights of the
           members in that behalf.
           
           1.4.1.10.
 Article 10 empowers  the  political  parties  to
           decide on  the  admission  of new members.  It says that no
       
   justification need be given for refusing an application for
           membership.  It further declares that members of the  party
           and  the  representatives  in  the  party bodies have equal
           voting rights.  The party can frame statutes providing
 for
           disciplinary  action  against  members  and  other  matters
           specified therein.
           
          
1.4.1.11.  Article  11  provides that every political party
           shall elect an executive committee at  least  every  second
           calender  year  and  that  the committee must consist of at
           least three members.  It also deals with the powers
of  the
           executive committee and its duties.

           1.4.1.12.  Article 12 provides for constitution of  general
 
         party committees and other incidental matters.
           
           1.4.1.13. Article 13 provides for composition of delegates'
           assemblies.
           
           1.4.1.14.  Article 14 provides for arbitration in case of a
           dispute  between
 the  members  or  between  the  party and
           members or between the party ad regional organisations,  as
           the
case may be.
           
           1.4.1.15.   Article  15   deals   with   the   process   of
           decision-making in party
organs.  It reads thus:
           
            "Article 15.  Decision-Making in Party Organs.
           
            (1) The
party organs adopt their resolutions on the
                   basis  of  a  simple  majority  vote  inasmuch as a
             
     higher majority vote is not stipulated by law or by
                   the statutes.
           
            (2)  The  ballots
 for  members  of  the  executive
                   committee   and   representatives   to   delegates'
                   assemblies
as well as to the bodies of higher level
                   regional organisations are secret.  Voting at other
                
  elections  is  not secret unless voters object when
                   asked to confirm such procedure.
           
          
 (3)  The   statutory   provisions   governing   the
                   submission of motions must be such as to ensure the
    
              democratic  forming  of  opinions and in particular
                   adequate discussion of the proposals put forward
by
                   minorities.  At the delegates' assemblies of higher
                   level  regional   organisations,   at
  least   the
                   representatives  of  the  regional organisations at
                   the next two lower levels
must be granted the right
                   to introduce  motions.    No  commitment   to   the
                   resolutions 
of  other  bodies  is  permissible  at
                   elections and polls."
           
           1.4.1.16.   Article 
16  deals  with   dissolution   and/or
           termination of the subordinate regional organisations.
           
           1.4.1.17.
  Section  III contains only one article, namely,
           article 17.  It  says  that  "candidates  for  election  to
  
        Parliament must be chosen by secret ballot.  The nomination
           procedure  is  governed  by the election laws and
the party
           statutes."
           
           1.4.1.18. Section IV containing articles 18 to  22    deals
        
  with  public financing of political parties whereas Section
           V obliges the political parties  to  maintain  and  publish
           their accounts  regularly.   Article 23 needs to be set out
           in full:
           
            "Article
23.    Statutory  obligation  to   Publish
                   Accounts.
           
            (1) The executive committee of the
party shall make
                   a  public  statement  of the origins and the use of
                   funds received by its
party within a calendar  year
                   (accounting  year)  as well as of the assets of the
                   party in
a statement of accounts.
           
            (2)  The  statement of accounts must be scrutinised
                   by a  certified
 auditor  or  auditing  company  in
                   accordance with  articles 29 to 31.  In the case of
                   parties
who do not meet the requirements of article
                   18,  para  4,  first  sentence,  the  statement  of
             
     accounts   may   be   scrutinised  by  a  chartered
                   accountant.  It must be submitted by  30  September

                  of  the  year  following the accounting year to the
                   President of the German Bundestag and be
circulated
                   by the latter as a Bundestag paper.  The  President
                   of  the German Bundestag can
extend the limit by up
                   to  a  maximum  of  three  months  in   extenuating
                   circumstances. 
 The  party  statement  of accounts
                   shall be submitted for discussion  to  the  federal
                   party
convention following its publication.
           
            (3)  The President of the  German  Bundestag  shall
              
    examine  whether  the  statement  of accounts is in
                   accordance with the regulations of Section V.   The
 
                 result  of  the  scrutiny  shall be recorded in the
                   report in accordance with para 5.
      
    
            (4)  The President of the German Bundestag may  not
                   determine  a  party's  allocation  of  public
funds
                   under articles 18 and 19 so long as a statement  of
                   accounts  in  accordance  with  the
 provisions  of
                   Section V is still  outstanding.    Payments  under
                   article  18  shall  be
 based  on  the statement of
                   accounts to be submitted for  the  preceding  year,
                   payments 
under  article  20  on  the  statement of
                   accounts submitted for the preceding year.    If  a
               
   party  fails to submit the report by 31 December of
                   the following year it shall forfeit  its  claim  to
  
                public funds:  allocations and disbursements to the
                   other parties shall remain unaffected.
  
        
            (5)  The  President  of  the German Bundestag shall
                   submit annually to the German Bundestag
a report on
                   the state of party finances and on  the  statements
                   of accounts  of  the  parties.
 The report shall be
                   circulated as a Bundestag paper."
           
           1.4.1.19.  Article 23(a) prohibits
 the  political  parties
           from  obtaining  donations illegally. It also provides that
           in case the political
party fails to publish the  statement
           of  accounts as provided by article 25(2), it shall forfeit
           public funding
in an amount  double  the  amount  illegally
           obtained or not published in accordance with article 25(2).
           It
 also  sets  out  the  meaning  of  `illegal donations'.
           Article 24 specifies what should the  statement  of  income

          and expenditure  contain.    It  mentions the several items
           which must necessarily be included  and  shown 
in  such  a
           statement.    Broadly   speaking   it  must  disclose  full
           particulars in the  specified  form,
 of  income  received,
           sources   from  which  received,  expenditure  incurred  on
           various items and its net
assets.
           
           1.4.1.20.   Article  25  deals  with donations to political
           parties.  It says that political
parties  are  entitled  to
           accept donations except from the sources specified therein.
            The   sources   which
  are   so  excluded  are  political
           foundations and  parliamentary  groups,  corporate  bodies,
           religious
and charitable associations of persons and so on.
           
           1.4.1.21.   Article  26  defines  the  expression "income".
           Article  28  creates  a  statutory  obligation   upon   the
           political  parties  to  "keep  books  in 
respect  of their
           accountable income and expenditure and  of  their  assets".
           The  article  further  provides
that the accounts "shall be
           kept  in  accordance  with  the   principles   of   orderly
           accounting  and
 with regard for the purpose of the present
           law.  Accounts shall be preserved for five years..."
           
   
       1.4.1.22.   Article  29  provides  for  auditing   of   the
           statement  of accounts while article 30 makes it obligatory
           that the statement  of  accounts  shall  contain  an  audit
           certificate in  the  prescribed  manner.   Article
31 deals
           with the appointment of auditors.
           
           1.4.1.23.  Sections VI and VII deal with implementation
 of
           bans  on  unconstitutional  parties  and  final provisions,
           which are not relevant for our  purpose  and
 need  not  be
           referred to.
           
           1.4.2.  Though our Constitution was also framed between the
      
    years 1946 to 1949 (i.e., approximately at  the  same  time
           when  the  German  Constitution  was  drawn),  it is rather
           inexplicable why our Constituent Assembly did not think  it
           appropriate  to  make  provisions  governing  the
political
           parties on the lines contained in the German  Constitution.
           It  may  be  mentioned  even at this
stage that though this
           aspect did not figure in the suggestions contained  in  the
           working  paper  prepared
by the Law Commission in September
           1998 and circulated among the  political  parties  and  the
           members  of
 the  public, the same has assumed considerable
           significance  in  the  course  of  debate  at  the  several
         
 seminars  held by the Law Commission in this behalf and has
           also been suggested in several responses  received  by  the
           Law Commission in response to the working paper.
           
 PART II
            Views of Political Parties and Interested Persons
            obtained in Seminar
           
           
           2.1	The working paper prepared by  the  Law  Commission
           was  communicated  to all the recognised
political parties,
           both at  the  national  and  State  level,  the  Houses  of
           Parliament, the State Legislatures,
to the High courts, bar
           associations,    Election   Commission,   prominent   media
           personalities, associations
and organisations interested in
           electoral reform and many other public-minded persons.    A
           large  number of
responses have been received from parties,
           persons, organisations, associations and individuals  which
           have
been  duly  collated.   In addition to circulating the
           working paper, the Law Commission also held  four  seminars
  
        to  elicit  informed  opinions  and  views of the political
           parties and the responsible members of  the  public.
   The
           first  seminar  was held on 14th November 1998 at the India
           International Centre.  It was a one-day
seminar  comprising
           two sessions.      The   morning  session  was  devoted  to
           introduction of list system
and amendment of Tenth Schedule
           while the second  session  was  devoted  to  proposals  for
           curtailing  expenditure
 on  elections  and the measures to
           curb the entry and influence of criminal elements.  Certain
           political parties
viz., BJP, CPI(M), CPI, DMK and Shiromani
           Akali Dal were represented by their spokesmen  S/Shri  Jana
           Krishnamurthy,
Sitaram Yechury,  A.B.   Bardhan, T.R.  Balu
           and Manjeet Singh Khera, respectively.  Shri Shivraj Patil,
           MP
(former Speaker of Lok Sabha) and Shri Kapil  Sibal,  MP
           (a  senior  advocate)  who  are members of Congress-I, also

          participated but in their individual capacity.  Besides the
           above, senior journalists  S/Shri  H.K.Dua,  C.R.
   Irani,
           Inderjit,  N.Ram  and  S.Sahay  and  senior  advocates Shri
           Shanti Bhushan (former  Minister  for
 Law,  Government  of
           India),   Shri   Soli  Sorabjee  (Attorney  General),  Shri
           Rajinder Sachhar (former
Chief Justice Delhi  High  Court),
           Shri  T.R.Andhyarujina (former Solicitor General of India),
           Shri P.P.Rao,
Shri Jitender Sharma  and  Shri  M.C.Bhandare
           participated.   Shri  Ram  Jethmalani, the Hon'ble Minister
           for
Urban Development participated in  both  the  sessions.
           Dr.K.C.Sivaramakrishnan,   from   the   Centre  for  Policy
 
         Research, New Delhi, Shri V.K.Samayak,  President,  Voters'
           Forum,  New  Delhi,  and  Shri  N.N.Vohra,  Director,
India
           International Centre, also participated.  The  participants
           put  forward several valuable suggestions,
observations and
           comments all of  which  have  been  duly  recorded  in  the
           minutes of the seminar prepared
by the Law Commission.

           2.2	The  second  seminar was held at Thiruvananthapuram
           in the auditorium of the Bar
Council of  Kerala.    Several
           senior  advocates  and  members  of  Bar  Council of Kerala
           participated therein
 which  was  also  addressed  by  Shri
           Justice  V.R.Krishna  Iyer,  former  Judge Supreme Court of
           India and
an eminent public figure.  The  minutes  of  this
           seminar have also been prepared by the Law Commission.
           

          2.3	The  third  seminar  was  held  at Bangalore in the
           premises of the National Law School  of  India  University.
           Several  academicians and professors of law participated in
           this seminar.  The minutes of this seminar have
 also  been
           prepared by the Law Commission.
           
           2.4	Finally,  a  National  Seminar on Electoral Reforms
           was held, at New Delhi on 23-24th January, 1999  at  Vigyan
           Bhawan, in  association  with the Bar Council of
India.  It
           was inaugurated by the Hon'ble Prime Minister of India Shri
           Atal Bihari Vajpayee and was  presided
 over  by  the  then
           Minister  for  Law,  Justice  & Company Affairs Dr.M.Thambi
           Durai.  Shri Justice 
M.N.    Venkatachaliah,  Chairperson,
           National Human Rights Commission was the Chief Guest at the
           inaugural
 session  which was addressed by the Chairman and
           Members of the Law Commission and of  the  Bar  Council  of
       
   India.   In  his  inaugural  address, the Prime Minister of
           India supported the proposals of the  Law  Commission 
with
           respect  to  introduction  of list system, amendment of the
           Tenth  Schedule  to  the  Constitution  and
 amendments  to
           curtail  the  expenditure  on  elections  and regulation of
           receipts and expenditure by the
political  parties.    With
           respect to list system, however, the Hon'ble Prime Minister
           opined  that  the 
suggestions  in that behalf may required
           deeper consideration.  So far as the amendment of section 8
           of  the
 Act  is  concerned,  the  Hon'ble  Prime  Minister
           expressed  his  agreement while clarifying that mere filing
     
     of charges should not be the  basis  for  disqualification.
           The   then  Law  Minister  expressed  the  anxiety  of
 the
           Government to bring about reform of electoral  law  in  the
           interest   of  a  transparent,  fair  and
 clean  electoral
           process.  Shri  Justice  M.N.Venkatachaliah  commended  the
           initiative  taken  by  the  Law
Commission in the matter of
           electoral  reform  and  called  for  serious   and   prompt
           legislative  action
by Parliament to remove the distortions
           and defects in the system.

           2.5	The National Seminar was divided into
five  working
           sessions   besides   the   inaugural  and  the  valedictory
           sessions.  The first session dealt
with  the  amendment  of
           Tenth Schedule  to  the Constitution.  It was presided over
           by Shri I.K.Gujral, former
Prime Minister of India and  the
           main  speakers  were  Shri Shivraj Patil, former Speaker of
           Lok Sabha and
Shri Justice V.R.  Krishna Iyer.  The  second
           session  was  presided  over  by  Shri  S.Jaipal  Reddy, MP
           (Janata
Dal).  This session was devoted to introduction  of
           list system.      The   main  speakers  were  Shri  Justice
     
     B.P.Jeevan  Reddy,  Chairman,  Law  Commission  of   India,
           Dr.N.M.Ghatate,  Member,  Law  Commission of India and
Shri
           D.V.  Subba Rao, Member, Bar Council of India.   The  third
           session  on  the  morning  of  24th  January
was devoted to
           curtailing of election expenditure and regulation of income
           and expenditure of political parties.
 This session was  to
           be  presided  over  by Shri Inderjit Gupta, MP (former Home
           Minister) but on account
of the delay in  the  flights,  he
           could not  reach Delhi in time.  Shri Somnath Chaterjee, MP
           [CPI(M)] presided
over this session.  The main  speaker  at
           this session  was Shri K.K.Venugopal, senior advocate.  The
           next
session pertained  to  the  problems  concerning  hung
           Parliament.   It  was  presided  over  by Shri Arun Mishra,
  
        Chairman, Bar Council of India and the main  speakers  were
           Shri  K.L.Sharma,  Vice  President  of  BJP,  Shri
 Justice
           K.N.Saikia, former Judge Supreme Court of  India  and  Shri
           T.P.Singh,  senior  advocate  and  Member,
 bar  Council of
           India.  The last session discussed the  criminalisation  of
           politics  including  the proposed
amendment of section 8 of
           the Act.  It was  presided  over  by  Shri  P.A.Sangma,  MP
           (former Speaker  of 
Lok Sabha).  The main speakers at this
           session were Shri Dileep Padgaonker, Executive Editor,  The
           Times  of
 India  and  Shri  V.R.Reddy, senior advocate and
           former Additional Solicitor General of India.
           
         
 2.6.	In  all  the  above  sessions,  a  large  number of
           persons from political parties, Bar Council of  India,  bar
           associations and other public bodies and organisations also
           spoke.
           
           2.7.	The  concluding/valedictory
 session  was  presided
           over  by  Shri  George  Fernandes,  the   Hon'ble   Defence
           Minister.   The  valedictory
 address was delivered by Shri
           Justice V.R.Krishna Iyer, former Judge,  Supreme  Court  of
           India.
        
  
           2.8.	The  entire  proceedings  of  this two-day National
           Seminar were tape recorded.
           
      
    2.9.	The Law Commission has looked into the vast  amount
           of  literature  on  the  subject  of  electoral reforms,
in
           particular, the opinions  expressed  therein  touching  the
           issues considered in this Report.
            PART III
            Analysis of views and Commission's Conclusions
            CHAPTER I
            Necessity for providing law relating to internal
            democracy within political parties
           
           3.1.1.	On a consideration of the various  views  expressed
           in  the  four  seminars  aforesaid  and  the vast
number of
           responses received by us, we have come  to  the  conclusion
           that  for successful implementation of
any of the aforesaid
           proposals, or for that  matter  for  bringing  a  sense  of
           discipline  and  order  into
 the  working of our political
           system and in the conduct of elections, it is necessary  to
           provide  by  law
for the formation, functioning, income and
           expenditure and the  internal  working  of  the  recognised
           political
 parties  both  at  the national and State level.
           The necessity of such a requirement was  stressed  by  Shri
       
   S.Jaipal  Reddy,  MP (a former Minister for Information and
           Broadcasting), by Shri  Manjit  Singh  Khera  (representing
           SAD), by Dr.  N.L.  Mitra, Director, National Law School of
           India  University,  and  several  other participants
in the
           seminars held by the law Commission.  To  the  same  effect
           was  the view expressed by Shri Santosh
Sharma, IAS (retd.)
           and president of "People First".  As pointed out in chapter
           four of  Part  one,
 the  German  Constitution,  which  was
           enacted  practically  at the same time as our Constitution,
           expressly
provides for formation  and  functioning  of  the
           political parties.    Article  21 which has been set out in
       
   the said chapter says that the political parties shall help
           form the political  will  of  the  people,  that  political
           parties  can  be freely established and that their internal
           organisation shall conform to democratic  principles.
   It
           further  says  that  the  political parties should publicly
           account for the sources and use  of  their
 funds  and  for
           their assets.    Article 21 further provides that political
           parties which by reason of their
aims  or  the  conduct  of
           their  adherents  seek  to  impair or do away with the free
           democratic basic order
or threaten  the  existence  of  the
           Federal  Republic  of Germany shall be unconstitutional and
           that the Federal
Constitutional Court shall rule  upon  the
           question of  unconstitutionality.  Clause (3) of Article 21
           provides
that the details in this behalf shall be  provided
           by federal  laws.   Accordingly, on 24th July 1967, the law
      
    on Political Parties was enacted.  We have already referred
           to the relevant provisions of this Law in chapter  four
 of
           Part One.
           
           3.1.1.1.	Shri   Rajni  Kothari  while  dealing  with
           powers of internal
democracy in the  Congress  Party,  said
           this:
           
            "The  `Congress  system'  has to learn to
bear more
                   strains and deal with more problems but it has also
                   to become more of a `system'
than it at present is.
                    After  March,  1967,  it  will  need  to  consider
                   further  steps towards
its own institutionalisation
                   in the resolution of disputes, in  the  conduct  of
                   internal 
  elections,    in    organising    party
                   intelligence  and   research,   in   policy-decison
               
   making,  in  the  party's own federal relations, in
                   party-government communications, and above  all  in
  
                regard   to  the  whole  process  of  selection  of
                   candidates for different  types  of  elections
 and
                   especially for the General Elections."  (Centre for
                   the  Study  of  Developing  Societies,
 Context  of
                   Electoral Change in India, General Elections, 1967,
                   page3).

           3.1.2.
With  a  view  to  introduce  and  ensure  internal
           democracy in the functioning of political parties, to  make
     
     their  working  transparent and open and to ensure that the
           political parties become effective instruments of achieving
           the constitutional goals set out in the Preamble and  Parts
           III and IV of the Constitution of India, it is
necessary to
           regulate by  law  their formation and functioning.  In this
           connection, reference can be had to
the law  laid  down  in
           the  nine-judge  Constitution Bench of the Supreme Court in
           S.R.Bommai v.  Union of
India (1994 (3) SCC1).   Explaining
           the  concept  of  secularism implicit in the constitutional
           provisions,
the Court made the  following  observations  at
           page 236:
           
            "Inspired by the Indian tradition
of tolerance  and
                   fraternity,  for  whose  sake,  the greatest son of
                   Modern India, Mahatma
Gandhi, laid  down  his  life
                   and  seeking  to  redeem  the  promise of religious
                   neutrality
held forth by the  Congress  Party,  the
                   Founding  Fathers  proceeded  to  create  a  State,
                
  secular in  its  outlook  and  egalitarian  in  its
                   action...   if  any  party or organisation seeks to
   
               fight the elections on the basis of plank which has
                   the  proximate  effect  of  eroding   the 
 secular
                   philosophy  of  the Constitution it would certainly
                   be guilty of following an  unconstitutional
 course
                   of action....    if  the  Constitution requires the
                   State to be secular in thought
and action, the same
                   requirement attaches to political parties as well."
           
           
       
   3.1.2.1.	On  the  parity  of the above reasoning, it
           must  be  said  that  if   democracy   and   accountability
 
         constitute  the core of our constitutional system, the same
           concepts must also apply to and bind the political
 parties
           which are  integral  to parliamentary democracy.  It is the
           political  parties  that  form  the  government,
 man   the
           Parliament and  run  the  governance of the country.  It is
           therefore,  necessary  to  introduce
 internal   democracy,
           financial transparency and accountability in the working of
           the political  parties.
   A political party which does not
           respect  democratic  principles  in  its  internal  working
           cannot  be
 exposed  to  respect  those  principles  in the
           governance of the  country.    It  cannot  be  dictatorship
        
  internally and democratic in its functioning outside.
           
           3.1.3.	Conclusion.-  Keeping  the aforesaid considerations
           in mind, we recommend that a new part, Part II-A,  entitled
           `Organisation  of  Political Parties and matters
incidental
           thereto' be introduced/inserted in the Act, containing  the
           undermentioned sections:
          

           3.1.3.1.	In  view  of reiteration of our proposal to
           repeal section 11 and 11B of the Representation  of 
People
           Act,  1951 as stated under paragraphs 6.1.1 and 6.2 of part
           VI   infra,   the   existing    section
   11-A    entitled
           "Disqualifications  arising  out  of conviction and corrupt
           practices" which
will  fall  under  Chapter  IV,  shall  be
           renumbered as  Section  11.    Consequently,  the following
           sections
proposed to be inserted under part II-A  shall  be
           numbered as Section 11-A to 11-H.
            PART II-A
            Organisation of Political Parties
            and matters incidental thereto
           
           Section 11-A:  (1)Political parties can be freely formed by
           the citizens of this country.  The political parties
 shall
           form   a   constitutionally   integral  part  of  free  and
           democratic system of Government.
      
    
           		(2)  Each  political  party shall frame its
           constitution defining its aims and  objects  and  providing
           for matters specified in section 11A.  The aims and objects
           of  a political party shall not be inconsistent
with any of
           the provisions of the Constitution of India.
           
           		(3) A political party shall strive towards,
           and utilize its funds exclusively for,  the  fulfilment  of
           its  aims  and  objects and the goals and ideals
set out in
           the Constitution of India.
           
           		(4)(a) A political party  shall  apply  for
          
registration with the Election Commission of India.
           
           (b)		Every such application shall be made, -
        
  
           		(i)  if  the  association  or  body  is  in
           existence at the commencement of the Representation of  the
           People  and  other Allied Laws (Amendment) Act, 1999 ( __of
           1999), within sixty days next following such commencement;
           
           		(ii) if the association or body  is  formed
           after  such commencement, within thirty days next
following
           the date of its formation.	
           
           (c)		Every  application  under  sub-section  (4)
       
   shall  be  signed  by  the  chief  executive officer of the
           association or body (whether such chief  executive  officer
           is  known  as  Secretary  or  by any other designation) and
           presented to the Secretary to the  Commission 
or  sent  to
           such Secretary by registered post.
           
           (d)		Every  such  application  shall contain the
           following particulars, namely:  -
           
           		(i) the name of the association or body;
           
     
     		(ii)the State in which its head  office  is
           situated;
           
           		(iii)the address to which letters
and other
           communications meant for it should be sent;
           
           		(iv)the  names of its president, secretary,
           treasurer and other office-bearers;
           
           		(v)the numerical strength of  its  members,
           and
 if  there are categories of its members, the numerical
           strength in each category;
           
           		(vi)whether
it has any local units; if  so,
           at what levels;
           
           		(vii)whether   it  is  represented  by  any

          member or members in either House of Parliament or  of  any
           State  Legislature;  if  so,  the  number of such
member or
           members.
           
           		(viii)a declaration that the applicant  has
           complied  with  and
 shall  continue  to  comply  with  the
           requirements of this chapter.
           
           (e)		The application under
sub-section (4) shall
           be accompanied by a copy of the  memorandum  or  rules  and
           regulations  of  the  association
or body, by whatever name
           called, and such memorandum or rules and regulations  shall
           contain  a  specific
provision that the association or body
           shall bear true faith and allegiance to the Constitution of
           India as
by law  established,  and  to  the  principles  of
           socialism,  secularism  and democracy, and would uphold the
      
    sovereignty, unity and integrity of India.
           
           (f)		The Commission  may  call  for  such  other
         
 particulars  as  it  may  deem  fit from the association or
           body.
           
           (g)		After considering all 
the  particulars  as
           aforesaid  in  its  possession  and any other necessary and
           relevant factors and after
giving  the  representatives  of
           the  association  or  body  reasonable opportunity of being
           heard, the Commission
shall decide either to  register  the
           association  or  body as a political party for the purposes
           of this Part,
or not so to register it; and the  Commission
           shall communicate its decision to the association or body:
           

          	Provided  that  no  association  or  body  shall be
           registered as political party under this sub-section unless
           the memorandum or rules and regulations of such association
           or body conform to the provisions of clause (e).
           
           (h)	The decision of the Commission shall be final.
           
           (i)	After an association or body
has been registered as
           a political party as aforesaid, any  change  in  its  name,
           head  office,  office  bearers,
 address  or  in  any other
           material matters shall be communicated  to  the  Commission
           without delay.
   
       
           	(5)	Only  a  political  party  registered  with
           Election Commission of India, and whose registration
is not
           cancelled under this Act,  shall  be  entitled  to  contest
           elections  whether  to  Lok  Sabha  or 
that of Legislative
           Assembly.
           
           Section 11-B:	(1) A political party may sue  and  may  be
      
    sued in its own name.  A political party shall be competent
           to hold and dispose of properties.
           
      
    		(2)	The  name of a political party must
           be  clearly  distinguishable  from  that  of  any  existing
           political
 party  and  shall  be subject to approval by the
           Election Commission.    In  election   campaigns   and   in
       
   elections,  only the registered name or its acronym, as may
           have been approved by the Election Commission, alone  shall
           be used.
           
           		(3)	Political  parties  can  be  formed
           both at the national level as well
as at the State level.
           
           Section 11-C:  The constitution of a political party  shall
           provide for
the following matters:-
           
           (a)	name  of  the political party and acronym (if used)
           and the aims and
objectives of the party;
           
           (b)	procedure for admission, expulsion and  resignation
           by the members;
           
           (c)	rights, duties and obligations of the members;
           
           (d)	grounds  on  which  and  the
procedure according to
           which disciplinary action can be taken against the members;
           
           (e)	the general
organisation of the party including the
           formation of State, regional, district, block  and  village
           level units;
           
           (f)	composition  and  powers of the executive committee
           (by whatever name it is called) and  other
 organs  of  the
           party;
           
           (g)	the  manner  in which the general body meetings can
           be 
requisitioned  and  conducted  and  the  procedure  for
           requisitioning  and holding conventions to decide questions
 
         of  continuance,  merger   and   other   such   fundamental
           organisational matters;
           
           (h)
the  form and content of the financial structure of
           the party consistent with the provisions of this part.
          

           Section 11-D:	The  executive  committee  of  a  political
           party shall  be  elected.   Its term shall not exceed
three
           years.  Well before the expiry of the term, steps shall  be
           taken for  electing a new executive committee.
 It shall be
           open  to  the   executive   committee   to   constitute   a
           sub-committee  (by  whatever  name
called) to carry out the
           business of the executive committee and to carry on regular
           and urgent executive committee
business.   The  members  of
           the  sub-committee  shall  be elected by the members of the
           executive committee.
           
           Section 11-E:	A political  party  and  its  organs  shall
           adopt  their  resolutions on the basis
of a simple majority
           vote.  The voting shall be by secret ballot.
           
           Section 11-F:	The candidates
for contesting elections  to
           the  Parliament  or  the Legislative Assembly of the States
           shall  be  selected
 by  the  executive  committee  of  the
           political  party  on  the  basis of the recommendations and
           resolutions
passed by the concerned local party units.
           
           Section 11-G:	(1) It shall be the duty of  the  executive
    
      committee  to  take  appropriate steps to ensure compliance
           with the provisions of this chapter  including  holding
 of
           elections at  all  levels.    The  executive committee of a
           political party shall hold elections of national
and  State
           levels  in the presence of the observers to be nominated by
           the Election  Commission  of  India.
    Where   considered
           necessary,  the  Election  Commission  may  also  send  its
           observers at elections to
be held  at  other  national  and
           state levels.
           
           			(2)  The  executive  committee of a
       
   political party shall  maintain  regular  accounts  of  the
           amounts  received by the party, its income and expenditure,
           have them audited and  submit  the  same  to  the  Election
           Commission as required by section 78-A of this
Act.
           
           			(3)  A  political  party  shall  be
           entitled to accept  donations  except  from  the  following
           sources:-
           
           	(a)	donations  from  political  foundations  or
           foreign  governments  or
 organisations   or   associations
           registered    outside    the    territory   of   India   or
           non-governmental
organisations  which  are  in  receipt  of
           foreign  funds or from any other association, organisation,
           group
which is in  receipt  of  foreign  funds  or  from  a
           foreign national.
           
           	(b)  donations  from corporate
bodies and companies
           except in accordance with the provisions of  the  Companies
           Act, 1956.
           
  
        Section 11-H:	The  Election Commission shall be competent
           to inquire, either suo motu or on information received
into
           allegation of non-compliance of any of these provisions  of
           this chapter.    If on due inquiry, the Election
Commission
           is satisfied that there has been non-compliance of  any  of
           the  provisions of this chapter by any
political party, the
           Commission  shall  call  upon  the  party  to  rectify  the
           non-compliance within the
period prescribed by the Election
           Commission.   In  case,  the  non-compliance continues even
           after the period
so prescribed, it shall  be  open  to  the
           Election  Commission  to  impose  such  punishment  on  the
           political
party as it may deem appropriate in circumstances
           of the case including levy of the  penalty  of  Rs.10,000/-
       
   per  day  for  each day of non-compliance and withdrawal of
           registration of the party.
           
           Section
11-I:	Where   a   public    authority    provides
           facilities or offers public services for use to a political
       
   party, it must accord equal treatment to all.  The scale of
           such facilities and services may be graduated to conform
to
           the importance of the parties subject to the minimum extent
           needed for  the  achievement of their aims.
 The importance
           of a party shall be decided on the basis of the results  of
           immediately   previous  election
 to  Parliament  or  State
           Legislative Assembly, as the case may be.  The granting  of
           public  services  shall
 be only in connection with and for
           the duration of the election  campaign  period.    For  the
           purposes  of
 this  section,  the  election campaign period
           shall  be  deemed  to  commence  14  days  prior   to   the
          
commencement of the poll in a State.
           
           	(Rules made under the Act can provide the requisite
           details
 on the pattern of the provisions of the German Law
           on Political Parties, 1967).
           
           3.1.4.	In view
of the above provisions, Part IV-A  of  the
           Act, containing   section  29-A  shall  be  deleted.    The
           substance
of section 29-A has been incorporated in  section
           11-A.
           
            CHAPTER II
            Analysis of views and conclusions
            regarding the List System
           
           
           3.2.1.		In  this  chapter  we  shall  deal with the
           concept  of  list  system  in  addition  to
 the   existing
           `first-past-the  post  (FPP)  system' which was proposed in
           our working paper.  The reasons
for introducing this system
           have been set out in chapter three  of  part  one  of  this
           report as  well  as
 in the working paper.  In the seminars
           conducted by  the  Law  Commission  and  in  the  responses
           received
 pursuant  to  the  circulation  of working paper,
           various views have been expressed which  we  shall  discuss
      
    hereinbelow.
           
           3.2.2.		Shri S.  Jaipal Reddy who presided over the
           second session of the National
Seminar on 23rd January 1999
           opposed  the  introduction  of list system altogether while
           conceding  that  the
 list   system   is   certainly   more
           representative.   He  opined  that that alone should not be
           the objective
of the elections.  According to him, the list
           system was likely to lead  to  proliferation  of  political
           parties.
  In  a  society  which  is  indeed  a "society of
           minorities", this system, he said, would  not  promote  the
           national interest.    He  also pointed out that in the list
           system, the umbilical cord between the constituency
and the
           candidate is absent.  He pointed out that list  system  was
           preferred  in  countries  with homogenous
societies and was
           not suited to a country like India whose  society  was  the
           most  heterogenous  in  the world,
divided as it was on the
           grounds of religion, caste, language, region, race  and  so
           on.   Even  if  the list
system was introduced, he said, it
           should not be confirmed to recognised political parties  as
           suggested by
 the  Law  Commission.  He gave the example of
           Telugu Desam Party in Andhra Pradesh, which was formed just
          
about nine months before the elections to  the  Legislative
           Assembly in Andhra Pradesh and yet swept the polls in 1983.
           He  suggested  that  all  the  registered political parties
           should be allowed top participate in the election
 held  on
           the basis of  list  system.  Mr.  Jaipal Reddy also pointed
           out several merits of the existing FPP
system.    According
           to him, the FPP system had the merit of reducing the number
           of political   parties.  
  The  present  proliferation  of
           political parties in this country is taking place in  spite
           of the  FPP 
system,  he  said.   According to him, the FPP
           system led to stability  by  eliminating  smaller  parties.
          
According  to  him,  there  must necessarily be an intimate
           connection between the candidate and the constituency.  Mr.
           Jaipal Reddy also pointed out that there should be  a  rule
           that  for  obtaining  any  seat  under  the  list
system, a
           political party  must  obtain  certain  prescribed  minimum
           percentage of votes and in this connection,
referred to the
           position  obtaining in Greece and Germany - particularly in
           the latter  country.    Unless
 a  political  party  got  a
           particular   specified   percentage   of   votes   in   the
           parliamentary or assembly
elections, it should not get  any
           seats, he  suggested.    He  commended  such  a  rule to be
           adopted in case
the list system was to be adopted.
           
           3.2.2.1.		The views of Mr.  Jaipal Reddy were
           supported by Shri
D.V.  Subba Rao, Member, Bar  Council  of
           India and Shri Margabandhu, MP and Chairman, Tamil Nadu Bar
           Council.
 Mr.   Margabandhu opined that such a system would
           benefit the money bags  and  would  be  unable  to  reflect
      
    regional interests  and  aspirations.    Views  to the same
           effect were expressed by Shri Kapil Sibal, MP  (Congress-I)
           at the  seminar  held  on  14th  November  1998.   Shri Ram
           Jethmalani, the Hon'ble  Minister  for  Urban 
Development,
           purporting  to express his personal views, opposed the list
           system.  He said that Rajya Sabha
is already there to serve
           the purpose behind the list system.  He further opined that
           introduction of list
system would give rise to two  classes
           of  MPs  -  one  elected  directly  and  the  other elected
           according
to list system.  He  referred  to  Lord  Jenkin's
           report  published  some  time  in  October-November in U.K.
       
   (reference to this report was also made by Dr.  S.C.  Jain,
           Member Secretary of Law Commission in his  initial  remarks
           at   the   seminar  held  on  14th  November,  1998)  which
           recommended alternative vote plus  system.    He
 suggested
           that  the existing FPP system could be replaced by a single
           transferable vote.  List system, he
 said,  would  help  in
           entrenching coalitions.
           
           3.2.3.		Shri  Jana Krishnamurthy, Vice President
of
           the BJP opined in the seminar held on 14th  November,  1998
           that  there  was  a  danger  of the list system
encouraging
           casteist and communal tendencies and is likely  to  promote
           caste-based and  relation  based  political
 parties.    He
           pointed out that introduction of such a system  would  lead
           to  several  small  parties  putting
up their candidates in
           several constituencies with the hope that the  totality  of
           the  votes  polled by them
would yield some seats under the
           List system, which they would not have got  under  the  FPP
           system.
     
     
           3.2.4.		On  the  other  hand,   several   political
           parties,  individuals  and organisations supported
the list
           system.  In particular, the two Communist parties, the  DMK
           and  the  Shiromani Akali Dal supported
the introduction of
           the list system wholeheartedly.  Indeed, it  was  suggested
           by  Shri  Sitaram Yechury (representing
the CPM), Shri T.R.
           Balu (representing the DMK) and Shri  Manjeet  Singh  Khera
           (representing Shiromani Akali
Dal) that the number of seats
           to  be  filed  according to list system should be raised to
           50%  of  the  existing
 strength  of  Lok  Sabha  and   the
           Legislative Assemblies, instead of restricting it to 25% as
           suggested
by the  Law  Commission.  Shri M.S.  Khera opined
           that the apprehension that the list system would  encourage
       
   casteist tendencies  was  misplaced.   List system was also
           strongly supported by Shri H.K.  Dua, senior journalist
who
           too wanted the strength of members to be  elected  on  this
           basis raised   to   50%.      According  to
 him,  the  Law
           Commission's proposal was a definite improvement  over  the
           existing electoral scene.     
Shri  A.B.    Bardhan  (CPI)
           strongly commended the list system.  According  to  him  it
           was overdue.    He
 said that prominent campaigners for the
           political parties were usually tied  up  in  campaigns  for
           their
 parties  all  over  the country and could not devote
           adequate attention to their particular constituency.    The
   
       list  system  would  help such persons to become members of
           Lok Sabha/State Legislature.  He pointed out  that
 such  a
           system was  working  quite  well  in Germany and Japan.  He
           sought to allay the apprehension that
criminals  and  money
           bags   were  likely  to  get  into  Parliament/Legislatures
           through this  method.   
Shri  Rajinder   Sachhar,   senior
           advocate  and  former  Chief  Justice  of  Delhi High Court
           supported the
list system but he did  not  agree  with  the
           concept of  territorial  units.    He  suggested  that list
           system
should be implemented  on  all-India  basis.    Shri
           Inderjit, senior   journalist,   Shri   N.     Ram,  senior
    
      journalist and Editor, Frontline, Shri C.R.  Irani, Editor,
           The Statesman and Shri V.K.   Samayak,  President, 
`Voters
           Forum Foundation  of India', New Delhi, and Shri S.  Sahay,
           senior journalist not only supported the
list  suystem  but
           wanted  it  to  be  raised  to 50% of the existing strength
           instead of the suggested 25%.
   Another  senior  advocate,
           Shri  Jitendra Sharma supported the idea but suggested that
           it should be operated
on all-India basis.  This,  he  said,
           was necessary to curb casteism and communalism.
           
           3.2.5.		In
  connection   with   the   carving   of
           territorial   units,   one   of   the   participants   Shri
           Shivaramakrishnan
pointed out that if the latest census was
           made  the  basis,  then  the southern States, in particular
           Kerala,
would be adversely affected.  He pointed  out  that
           because   of   better  implementation  of  family  planning
     
     programmes, their population growth has slowed  down  while
           the rate  of  growth  in the northern States like U.P.
 and
           Bihar remained more of less  unaffected.    If  in  such  a
           situation,  the  latest  census  was  made
 the  basis  for
           redrawing the  territorial  constituencies  or  territorial
           units,   the   southern   States
  would   stand   to  lose
           substantially.  It would really amount  to  punishing  them
           for    successful  
implementation   of   family   planning
           programmes.  Facts and figures were  cited  in  support  of
           such an
 argument.    It  was  stated  that  with a view to
           allaying this apprehension, it should be provided that 1971
     
     cansus shall be the basis of drawing up territorial  units.
           Indeed,  such  a provision already existed in clause
(3) of
           article 81 of the Constitution.   Since  we  are  accepting
           their  plea,  it  is  not  necessary  to
cite the facts and
           figures in support of the said plea.
           
           3.2.6.		We may also refer to the views
expressed by
           several persons and organisations  who  communicated  their
           views in  response to our working
paper.  Shri Arun Jaitley
           (senior   advocate),   Rajasthan    Legislative    Assembly
           Secretariat, Shri  P.V.
   Namjoshi, Delhi Bhartiya Grammin
           Mahila Sangh, Shri C.K.   Jain  (former  Secretary-General,
           Lok   Sabha),
  Hill   States  People's  Democratic  Party,
           Meghalaya,  Registrar  High  Court  of   M.P.,   Jabalpur,.
           opposed
the  list  system.    Some others, namely , CPI(M),
           Shri R.S.  Narula, retired  Chief  Justice  of  Punjab  and
     
     Haryana  High Court and Manipur People's Party, agreed with
           the proposal to introduce  the  list  system.    Shri
 R.S.
           Narula  suggested  that  the list system should be the only
           method by which the totality of Members of
 Lok  Sabha  and
           Legislative Assemblies  should  be  elected.  Several other
           individuals expressed  varying
 views  which  need  not  be
           specifically referred to herein.
           
           3.2.6.1.	The  fact  of  `wasting'
 away of the votes
           cast in the FPP system has also been  recognised  in  other
           parts of  the world.  Thus in
the response of the Electoral
           Reform Society to the Commission on  Local  Government  and
           the   Scottish  
Parliament,  (July,  1998),  it  has  been
           mentioned inter alia, that the  FPP  system  distorted  the
           expressed
 wishes  of those who actually voted by observing
           thus:-
           

           	 "Local Democracy"
      
    
           	Question 2
           
           	One of the  reasons  for  poor  turnouts  at  local
           government  election
 is that the votes of large numbers of
           electors  will  not  count,  either  within   their   local
           constituency
 or in the overall composition of the Council.
           Until this  has  been  corrected,  changing  administrative
          
arrangements will only have a limited effect.
           
           	The   magnitude   of  this  problem  is  not  often
      
    appreciated.  For example, in the local authority elections
           in April, 1995 in Edinburgh,  49%  of  those  who  actually
           voted  cast  a  vote  that  had  no  effect in securing the
           election of any representative  as  they  were
 for  losing
           candidates.  It is common in all first-past-the-post (FPTP)
           elections  for  between 30% and 60%
of the votes cast to be
           'wasted' in this way.  In  circumstances  where  they  know
           that  one  party  holds
 a seat with a large majority, many
           electors are discouraged from turning out to vote."
           
           

           "The results of the local  authority  elections  in
                   April,  1995  show  well  the  extent  to
which the
                   present FPTP voting system distorts  the  expressed
                   wishes of  those who actually
vote.  In the city of
                   Glasgow Council, Labour, with  61%  of  the  votes,
                   took 77 of  the 
83  seats,  i.e.  93%.  There were
                   also serious distortions among the smaller  parties
                   in this
election:  the Conservatives with 7% of the
                   votes,  took  3  seats, while the SNP gained only 1
             
     seat despite having 23% of the votes."
           
           3.2.6.2.	The Report of the Independent Commission on
   
       the voting System ("Jenkins Report")  summarises  the  Main
           Electoral Systems in the world.  These include
           
           i)	First Past the Post (FPTP)
           ii)	The Alternative Vote (AV)
           iii)	Supplementary vote
(SU)
           iv)	Second Ballot
           v)	List Systems
           vi)	Single Transferable Vote (STV)
           vii) Mixed
Systems:      the  Additional  member  System
                   (including AV or SV Top-up)  and  Parallel  Systems
           
       (AMS)
           
           3.2.6.3.	The   terms   of   reference  of  the  said
           Commission given in December,
1997, was  to  recommend  the
           `best  alternative system' or combination of systems to the
           existing commonly-called
`First Past the  Post'  system  of
           election to the Westminister Parliament.  In doing this, it
           was asked to
take into account four not entirely compatible
           `requirements'.  They were:  i) broad proportionality; (ii)
          
the need for stable government; (iii) an extention of voter
           choice,  and (iv) the maintenance of a link between MPs and
           geographical constituencies.
           
           3.2.6.4.	The Commission set out the  basis  of  fair
           election
 viz.,  to  the concept of `fairness' in electoral
           outcomes, the place of political parties; and the  role  of
      
    Members of Parliament.
           
           3.2.6.4A.	It  emphasises  that  fairness to voters is
           the first  essential.
   A  primary  duty   underlying   an
           electoral   system  is  to  represent  the  wishes  of  the
           electorate
as effectively  as  possible.    The  Commission
           observes that the major fault of the First past the Post in
        
  this context is that it distorts the desires of the voters.
           It  emphasises  that  the  fact  that voters do not get
the
           representation they want is more important  than  that  the
           parties  do  not get the seats to which they
think they are
           entitled.
           
           3.2.6.5.	After       going        through        the
           problems/advantages/disadvantages
 of  the  existing  First
           Past the Post  system,  the  said  Commission  recommended,
           inter alia as under:
           
            	"The  best  alternative  for Britain to the
                   existing First Past the Post system
is  a  two-vote
                   mixed  system  which  can  be  described  as either
                   limited AMS or AV Top-up.
 The majority of MPs  (80
                   to   85%)  would  continue  to  be  elected  on  an
                   individual constituency
basis, with  the  remainder
                   elected  on  a  corrective Top-up basis which would
                   significantly
reduce the disproportionality and the
                   geographical divisiveness  which  are  inherent  in
                   FPTP.
  But  it  cannot  be  denied  that democracy
                   postulates the working out of  a  system  which  is
           
       best suited to the peculiar needs of the country."
           
           3.2.6.6.	It  appears  that  a committee appointed
to
           suggest electoral reforms in Spain, prepared the  following
           summary on an overview of the elctoral systems
obtaining in
           various countries.
           
           
           	"Summary of Electoral System Types
         
 
            	There are  hundreds  of  electoral  systems
                   currently in use and many more permutations on each
                   form,  but  for  the  sake  of  simplicity  we have
                   categorised  electoral  systems  into 
three  broad
                   families:
           
           		.the plurality-majority,
           		.the semi-propotional, and
           		.the proportional.
           
            Within these three we have ten "sub-families".
           
   
       		.First Past the Post (FPTP),
           		.the Block Vote (BV),
           		.the Alternative Vote (AV), and
          
	 .the   Two-Round   System   (TRS)  are  all
                           plurality-majority systems.
           		.Parallel systems,
           		.the Limited Vote (LV) and
           	 .the  Single  Non-Transferable  Vote (SNTV)
                           are semi-proportional
systems.
           		.List PR,
           	 .Mixed Member Proportional (MMP),  and  the
                           Single  Transferable
 Vote  (STV)  are  all
                           proportional systems.
           
           	Every  one  of  the  212  parliamentary
  electoral
           systems  listed  in  The  Global  Distribution of Electoral
           Systems can be categorised under one
of these ten headings,
           and this family tree,  though  rooted  in  long-established
           conventions,  is  the  first
 to  take  account  of all the
           electoral systems used for parliamentary elections  in  the
           world today, regardless
of wider questions of democracy and
           legitimacy.  We hope it offers a clear and concise guide to
           the choice
among them.
           
           	The most common way to look at electoral systems is
           to  group them by how closely
they translate national votes
           won into parliamentary seats won; that is, how proportional
           they are.  To do
this,  one  needs  to  look  at  both  the
           vote-seat  relationship  and the level of wasted votes, For
           example,
 South  Africa  used  a  classically  proportional
           electoral  system  for  its  first  democratic elections of
      
    1994, and with 62.65%  of  the  popular  vote  the  African
           National  Congress (ANC) won 63% of the national seats
(see
           South Africa:  Election Systems and  Conflict  Management).
           The  electoral  system  was  highly  proportional,
 and the
           number of wasted votes (i.e., those  which  were  cast  for
           parties  which  did not win seats in the
Assembly) was only
           0.8% of the total.  In direct contrast the year before,  in
           the   neighbouring   nation
  of   Lesotho,  a  classically
           majoritarian First Past the Post  (FPTP)  electoral  system
           had  resulted 
in  the Basotho Congress Party winning every
           seat in the 65 member parliament with 75%  of  the  popular
           vote;
there was no parliamentary opposition at all, and the
           25% of electors who voted for other parties were completely
   
       unrepresented.   This  result  was  mirrored  in Djibouti's
           Block Vote election of 1992 when all 65 parliamentary
seats
           were won by the Rasemblement Populaire pour le progr s with
           75% of the vote.
           
           
	However,    under    some    circumstances,
           non-proportional  electoral  systems  (such  as  FPTP)  can
           accidentally
give rise to relatively  proportional  overall
           results.   This  was  the  case in a third Southern African
          
country, Malwai, in 1994.  In  that  election  the  leading
           party,  the  United  Democratic  Front won 48% of the seats
           with 46% of the votes, the Malawaian Congress Party won 32%
           of the seats with 34% of the votes, and  the  Alliance
 for
           Democracy won  20% of the seats with 19% of the votes.  The
           overall level of proportionality was high,
but the clue  to
           the  fact  that  this  was  not  inherently  a proportional
           system, and so cannot be categorized
as such, was that  the
           wasted  votes  still  amounted to almost one-quarter of all
           votes cast."
     
     
           3.2.6.7.	There   may   varied   electoral    systems
           prevalent  in the world but many may not suit conditions
in
           our society.  On a threadbare analysis of various  systems,
           we  feel  that a combination of FPP and the
list systems as
           detailed in this report may best meet out needs.
           
           3.2.7.		Accordingly, the Law Commission
is  of  the
           opinion  that  the  list  system  should  be  introduced as
           suggested by it for the reasons assigned
hereinbefore.  The
           main objections against this system are two-fold:  (a) that
           it will lead to and encourage
casteist and communal  voting
           patterns and would lead to proliferation of caste based and
           religion  based 
political  parties  and (b) that under the
           list system, the umbilical cord between the voters  in  the
           constituency
and  the  MPs/MLAs is missing.  In our opinion
           both the said objections are not well-founded.    We  shall
          
deal with both of them hereinbelow.
           
           3.2.8.		So  far  as  the  objection  that  the list
           system
would lead to casteist and communal voting  patterns
           and  caste-based  and  religion-based  political parties is
    
      concerned, the apprehension on this score can be allayed by
           providing that the votes polled  by  such  candidate
 whose
           deposit has been forfeited under sub-section (4) of section
           158  of the Act shall