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Saturday, July 20, 2013

Whether the promises at the time of election amounts to corrupt practices - apex court held No.: Whether the free gifts to the voters in their Manifesto amounts to corrputs practices - apex court held yes = distribution of free gifts by the political parties (popularly known as ‘freebies’). The Dravida Munnetra Kazhagam (DMK)- Respondent No. 8 herein, while releasing the election manifesto for the Assembly Elections 2006, announced a Scheme of free distribution of Colour Television Sets (CTVs) to each and every household which did not possess the same, if the said party/its alliance were elected to power. Thus, promises in the election manifesto do not constitute as a corrupt practice under the prevailing law.- the promises in the election manifesto cannot be read into Section 123 for declaring it to be a corrupt practice. ; Although, the law is obvious that the promises in the election manifesto cannot be construed as ‘corrupt practice’ under Section 123 of RP Act, the reality cannot be ruled out that distribution of freebies of any kind, undoubtedly, influences all people. It shakes the root of free and fair elections to a large degree. = we hereby direct the Election Commission to frame guidelines for the same in consultation with all the recognized political parties as when it had acted while framing guidelines for general conduct of the candidates, meetings, processions, polling day, party in power etc. = Model Code of Conduct for the Guidance of Political Parties & Candidates. We are mindful of the fact that generally political parties release their election manifesto before the announcement of election date, in that scenario, strictly speaking, the Election Commission will not have the authority to regulate any act which is done before the announcement of the date. Nevertheless, an exception can be made in this regard as the purpose of election manifesto is directly associated with the election process. We hereby direct the Election Commission to take up this task as early as possible owing to its utmost importance. We also record the need for a separate legislation to be passed by the legislature in this regard for governing the political parties in our democratic society. In the light of the above discussion, taking note of statutory provisions of the RP Act, which controls only candidate or his agent, mandates provided under the directive principles, various guidelines such as income limit, preference to women, agricultural labourer etc as detailed in the counter affidavit by the State, we find no merit in the appeal as well as in the transferred case. With the above observation as mentioned in paragraph Nos. 77-80, the appeal and the transferred case are dismissed. No order as to costs. of

                                   published in   http://judis.nic.in/supremecourt/imgst.aspx?filename=40527 
                          REPORTABLE

                        IN THE SUPREME COURT OF INDIA

                         CIVIL APPELLATE JURISDICTION

                                      1


                 2 CIVIL APPEAL NO.  5130            OF 2013


                3 (Arising out of SLP (C) No. 21455 of 2008)




S. Subramaniam Balaji                       .... Appellant(s)

            Versus

The Government of
Tamil Nadu & Ors.                                      .... Respondent(s)

                                    WITH

                       TRANSFERRED CASE NO 112 OF 2011

S. Subramaniam Balaji                         .... Appellant(s)

            Versus

The Government of
Tamil Nadu & Ors.                                  .... Respondent(s)


                               J U D G M E N T

P. Sathasivam, J.
SLP (C) No. 21455 of 2008
1)    Leave granted.
2)    This appeal is directed against the final  judgment  and  order  dated
25.06.2007 passed by the Madurai Bench of the  Madras  High  Court  in  Writ
Petition (C) Nos. 9013 of 2006 and 1071  of  2007  whereby  the  High  Court
dismissed the petitions filed by the appellant herein.
3)    Brief Facts:
(a)   The case relates to
distribution  of  free  gifts  by  the  political
parties (popularly known  as  ‘freebies’).
The  Dravida  Munnetra  Kazhagam
(DMK)- Respondent No. 8 herein, while releasing the election  manifesto  for
the Assembly Elections 2006, announced a  Scheme  of  free  distribution  of
Colour Television Sets (CTVs) to each and  every  household  which  did  not
possess the same, if the said party/its alliance were elected to power. 
 The
Party justified the decision of distribution of free CTVs  for  the  purpose
of providing recreation and general knowledge to the household  women,  more
particularly, those living in the rural areas.  In pursuance  of  the  same,
follow up actions by way of enlisting the households which did  not  have  a
CTV set and door to door  identification  and  distribution  of  application
forms were initiated.
(b)   This Scheme was challenged by one S. Subramaniam Balaji-the  appellant
herein, by way of filing writ petition before the High Court on  the  ground
that the expenditure  to  be  incurred  by  the  State  Government  for  its
implementation out of the State  Exchequer  is  unauthorized,  impermissible
and ultra vires the Constitutional mandates.  The appellant herein  filed  a
complaint dated 24.04.2006 to  the  Election  Commission  of  India  seeking
initiation of action in respect of the said promise  under  Section  123  of
the Representation of People  Act,  1951  (in  short  ‘the  RP  Act’).   The
appellant  herein  also  forwarded  the  complaint  to  the  Chief  Election
Officer, Tamil Nadu.
(c)   The DMK and its political  allies  emerged  victorious  in  the  State
Assembly Election held in the month of May, 2006. In pursuit  of  fulfilling
the promise made in the election manifesto, a policy decision was  taken  by
the then government to provide one 14” CTV to all eligible families  in  the
State. It was further decided by the Government to implement the  Scheme  in
a phased manner and a provision of Rs. 750 crores was  made  in  the  budget
for implementing the same.  A Committee was constituted, headed by the  then
Chief Minister and eight other  legislative  members  of  various  political
parties, in order to ensure transparency in the matter of implementation  of
the Scheme.
(d)    For  implementing  the  first  phase  of  the  Scheme,  the  work  of
procurement of around 30,000 CTVs was entrusted  to  Electronic  Corporation
of Tamil Nadu Ltd. (ELCOT), a State owned Corporation.  The first  phase  of
the Scheme was  implemented  on  15/17th  September,  2006  by  distributing
around 30,000 CTVs to the identified families in all the  districts  of  the
State of Tamil Nadu.
(e)   Being aggrieved by the implementation of  the  Scheme,  the  appellant
herein filed another complaint  to  the  Chief  Secretary  and  the  Revenue
Secretary pointing out the  unconstitutionality  of  the  Scheme.   He  also
preferred Writ Petition being Nos. 9013 of 2006 and 1071 of 2007 before  the
Madurai Bench of the High Court of Madras  alleging  the  Scheme  a  corrupt
practice to woo the gullible electorates with an eye on the vote  bank.   By
order dated 25.06.2007, the High Court dismissed  both  the  writ  petitions
filed by the appellant herein holding that the action of the  Government  in
distributing free CTVs cannot be branded as a waste of  exchequer.     Being
aggrieved, the appellant herein has preferred this appeal by way of  special
leave before this Court.
Transferred Case (C) No. 112 of 2011

(f)   In the month of February 2011, pursuant to the elections to the  Tamil
Nadu State Assembly, the ruling party (DMK) announced its manifesto  with  a
volley of free gifts.
 In the same manner, the opposite party-All India  Anna
Dravida Munnetra Kazhagam (AIADMK)  and  its  alliance  also  announced  its
election manifesto with free gifts to equalize the gifts offered by the  DMK
Party and promised to distribute free of cost  the  following  items,  viz.,
grinders, mixies, electric fans, laptop computers, 4 gms  gold  thalis,  Rs.
50,000/- cash for women’s marriage,  green  houses,  20  kgs.  rice  to  all
ration card holders even to those above the poverty  line  and  free  cattle
and sheep, if the said party/its alliance were elected to power  during  the
Tamil Nadu Assembly Elections 2011.
(g)   The very same Scheme was also challenged by the  appellant  herein  on
the  ground  that  such  promises   by   the   parties   are   unauthorized,
impermissible and ultra vires the Constitutional  mandates.   The  appellant
herein also filed a complaint dated 29.03.2011 to  the  Election  Commission
of India seeking initiation of action in respect of the  said  Scheme  under
Section 123 of the RP Act.
(h) The AIADMK and its political allies won  the  State  Assembly  Elections
held in 2011.  In  order  to  fulfill  the  promise  made  in  the  election
manifesto, a policy decision was taken by the then government to  distribute
the gifts and, pursuant to the same,  tenders  were  floated  by  the  Civil
Supplies Department for mixies, grinders, fans etc., as  well  as  by  ELCOT
for lap top computers.
(i)    On 06.06.2011, the appellant herein filed another  complaint  to  the
Comptroller and Auditor General of  India  and  the  Accountant  General  of
Tamil Nadu (Respondent Nos. 3 and 4 therein respectively) pointing  out  the
unconstitutionality of the Scheme and transfer of consolidated funds of  the
State for the same.  In the meanwhile,  the  appellant  herein  preferred  a
Writ Petition being No. 17122 of  2011  before  the  High  Court  of  Madras
alleging the Scheme a corrupt practice and to restrain the  government  from
in any way proceeding with the procurement, placement of tenders  or  making
free distributions under various Schemes introduced to woo the  voters.   In
view of the pendency of SLP (C) No. 21455 of 2008 in this Court relating  to
the similar issue, the appellant preferred a Transfer Petition (C)  No.  947
of 2011 before this  Court  praying  for  the  transfer  of  the  said  writ
petition. By order dated 16.09.2011, this Court allowed  the  said  petition
and the same has been numbered as T.C No. 112 of 2011 and  tagged  with  the
abovesaid appeal.
4)     Heard  Mr.  Arvind  P.  Datar,  learned  senior   counsel   for   the
appellant/petitioner, Mr. Shekhar Naphade, learned senior  counsel  for  the
State of  Tamil  Nadu,  Mr.  P.P.  Malhotra,  learned  Additional  Solicitor
General for the Union of India and Ms. Meenakshi Arora, learned counsel  for
the Election Commission of India.
5)    Prayer/Relief Sought For:
(a) When DMK started distribution of CTVs, the  appellant/petitioner  herein
approached the High Court of Judicature at Madras, Bench at Madurai, by  way
of filing Writ Petition (C) No. 9013 of 2006 with a prayer to issue  a  writ
of  mandamus  to  forbear  the  respondents  therein  from   incurring   any
expenditure out of the public exchequer for the  purchase  and  distribution
of colour Televisions within the State of Tamil Nadu.
(b)   After 5 years, when  AIADMK  elected  to  power,  pursuant   to  their
election manifesto, they started distributing various  freebies,  which  was
also challenged by the very same person –  the  appellant/petitioner  herein
by filing a writ petition being No. 17122 of 2011 before the High  Court  of
Judicature at Madras praying for issuance of a  writ  to  declare  the  free
distribution of (i) grinders (ii) mixies (iii)  electric  fans  (iv)  laptop
computers (v) 4 gm. gold thalis (vi) free green houses (vii) free   20  kgs.
rice to all ration card holders even to those above  the  poverty  line  and
(viii) free cattle and sheep ultra vires the provisions of Articles 14,  41,
162, 266(3) and 282 of the Constitution of India and Section 123(1)  of  the
RP Act.
Contentions by the Appellant:
6)    Mr. Datar, learned senior counsel for the appellant submitted  that  a
“gift”, “offer” or “promise” by a candidate  or  his  agent,  to  induce  an
elector to vote in his favour would amount to “bribery”  under  Section  123
of the RP Act.
He further pointed out that to couch this  offer/promise  to
give away a gift whose worth is estimable in money and  that  too  from  the
consolidated fund of the State under the head “promise  of  publication”  or
“public policy” or “public good” is to defeat  the  purposes  of  the  above
Section  viz.,  Section  123(1)  of  the  RP  Act.   While  elaborating  his
submissions, Mr. Datar raised his objections under the following heads:
(I)   Article 282 of the Constitution of India  only  permits  defraying  of
funds from the Consolidated Fund of the State for “public purpose”;
(II)  The  distributions  made  by  the  respondent-State  is  violative  of
Article 14 since there is no reasonable classification;
(III) Promises of free  distribution  of  non-essential  commodities  in  an
election manifesto amounts to electoral bribe under Section 123  of  the  RP
Act;
(IV)  The Comptroller and Auditor General of India has  a  duty  to  examine
expenditures even before they are deployed; and
(V)   Safeguards must be built into schemes to ensure that the  distribution
is made for a public purpose and is not misused.
(I) Article 282 of the Constitution  of  India  only  permits  defraying  of
funds from the Consolidated Fund of the State for “public purpose”.

7)    Regarding  the  first  contention  relating  to  Article  282  of  the
Constitution  of  India  which  only  permits  use  of  monies  out  of  the
Consolidated Fund of the State for public purpose, it  is  useful  to  refer
the said Article which reads as under:
      “282. Expenditure defrayable by the  Union  or  a  State  out  of  its
      revenue – The Union or a State may make  any  grants  for  any  public
      purpose, notwithstanding that the purpose is not one with  respect  to
      which Parliament or the Legislature of the State, as the case may  be,
      may make laws.”

8)    It is pointed out by Mr.  Datar  that  under  Article  266(3)  of  the
Constitution, the monies out of  the  Consolidated  Fund  of  India  or  the
Consolidated Fund of the State can only be appropriated in  accordance  with
law and for the purposes and in the manner  provided  by  the  Constitution.
Under Article 162, the extent  of  the  executive  power  of  the  State  is
limited to the matters with respect to which the Legislature  of  the  State
has the power to make laws.
 Likewise, under Article 282, the Union  or  the
States may make grants  for  “any  public  purpose”,  even  if  such  public
purpose is not one with respect to which the State or  the  Union  may  make
laws.
By referring these Articles, Mr. Datar submitted that monies  out  of
the Consolidated Fund  of  the  State  can  only  be  appropriated  for  the
execution of laws made by the State, or for any other “public purpose”.
9)    It is  further  pointed  out  that  the  State  raises  funds  through
taxation  which  can  be  used  by  the  State   only   to   discharge   its
constitutional functions.  Taxpayers’ contribution cannot be  used  to  fund
State largesse.  While the taxpayer has no right to demand a  quid  pro  quo
benefit for the taxes paid, he has a right to expect  that  the  taxes  paid
will not be gifted to other persons without  general  public  benefit.   The
main intention of an act done for a public purpose must be the  public,  and
that the act would remotely, or in a collateral manner,  benefit  the  local
public is not relevant at all.
10)   According to Mr. Datar, the most important constitutional  mandate  is
that a “public purpose” cannot be the one that results in  the  creation  of
private assets.  The  exceptions  that  can  be  made  to  this  overarching
principle are the distributions that  fulfill  an  essential  need  such  as
food,  clothing,  shelter,   health   or   education.    Even   if   certain
distributions, such as the  distribution  of  televisions  might  have  some
public benefit, it would not amount to public  purpose  since  the  dominant
purpose of such a distribution is  only  the  creation  of  private  assets.
Where the purposes of the expenditure are partly public and partly  private,
the Courts in the US have held that the entire act must fail.  (vide  Coates
vs. Campbell and Others, 37 Minn. 498).
11)   While statutory authorities can confer social or economic benefits  on
particular sections  of  the  community,  their  power  is  limited  by  the
principle that such benefits must not  be  excessive  or  unreasonable.   As
Lord Atkinson stated in Roberts vs. Hopwood & Ors. 1925 AC  578,  the  State
cannot  act  in  furtherance  of  “eccentric   principles   of   socialistic
philanthropy”.  In view of the above, a reference was also made  to  Bromley
London Borough Council, London vs. Greater Council & Anr. 1982  (2)  WLR  62
and R vs. Secretary of State for Foreign Affairs (1995) 1 All ER 611.
12)    In  this  context,  it  is  pointed  out  that  Article  41  of   the
Constitution of India states that the State, “within its  economic  capacity
and  development”  can  make  effective  provision  for   securing   “public
assistance” in certain special cases.  Article 39(b) states that  the  State
shall endeavour to ensure that the “material  resources”  of  the  community
are so distributed as best  to  subserve  the  “common  good”.   Both  these
articles imply that the goal of the  Constitution,  as  evidenced  by  these
Directive Principles, is to ensure that the State distributes its  resources
to secure “public  assistance”  and  “common  good”,  and  must  not  create
private assets.
13)   It is also pointed out that the Constitutions of 17 States of  the  US
explicitly prohibit the making of private gifts by the  Government,  and  it
is recognized even elsewhere in the US that the public funds cannot be  used
to make gifts to private persons.
14)   It is further stated that the spending on free  distribution  must  be
weighed against the public benefits that ensue  from  it  and  only  if  the
public benefits outweigh the same, can the spending be classified  as  being
for a public purpose.  Mr. Datar asserted that when  the  literacy  rate  in
the State of Tamil Nadu is around 73% and there are 234  habitations  across
the State with no school access whatsoever, distribution  of  free  consumer
goods to the people having ration  cards  cannot  be  justified  as  “public
purpose”.
15)   In addition to CTVs by the previous  Government,  the  following  free
distributions have been promised by the Government  of  Tamil  Nadu  in  the
Budget Speech for the year 2011-2012:
      “1.   60,000 green houses, at  a  cost  of  Rs.1.8  lakhs  per  house,
      totally amounting to Rs.1080  crores.   The  green  houses  are  being
      supplied to persons below the poverty line residing  in  rural  areas.
      However, they are being supplied to persons who already  own  300  sq.
      ft. of land.


      Comment by the appellant:


      The State is creating private assets through this  distribution,  when
      it can, instead build houses owned by the State which can be  occupied
      by eligible persons.


      2.    4 gms of gold for poor girls for thali, plus Rs.50000  cash  for
      wedding purposes, totally amounting to Rs.514 crores.


      Comment by the appellant:


      The State can  achieve  the  same  end  of  subsidizing  marriages  by
      providing institutions such as mandaps and temples that  can  be  used
      for marriage.  There are no safeguards in any scheme proposed  by  the
      State  to  ensure  that  Rs.50,000  given  in  cash  to  the  eligible
      beneficiaries will be used for the  marriage,  and  not  diverted  for
      other purposes.


      3.    Free mixies, grinders and fans for  25  lakh  families,  totally
      amounting to Rs.1250 crores.








      Comment by the appellant:


      The reasons given by the State,  of  alleviating  women  of  “domestic
      drudgery” are frivolous and do  not  amount  to  a  “public  purpose”.
      Mixies,  grinders  and  fans  are  luxuries  and  cannot   be   freely
      distributed by the Government.  The distribution is being  made  to  a
      large section of persons without even ascertaining whether the persons
      already own these goods and whether they require state  assistance  to
      acquire these goods.


      4.    9.12 lakh laptops to  all  class  XII  students  in  Tamil  Nadu
      amounting to Rs. 912 crores.


      Comment by the appellant:


      No “public purpose” is served by such distribution. The State is  duty
      bound to  create  computer  labs  in  schools  and  colleges  and  not
      distribute  such  expensive  articles  as  gifts.   Classification  of
      students eligible for the  laptops  suffers  from  overclassification,
      violative of Article 14 of the Constitution.   The  classification  is
      also violative of Article 14  as  it  omitted  certain  categories  of
      students.


      5.    Free cattle to poor  families  in  certain  rural  areas,  Rs.56
      crores.  Distribution of milch cows is being done,  according  to  the
      State’s Government Order, to “boost the productivity of  milk  in  the
      State.”


      Comment by the appellant:


      It is stated that the State does run a diary, and the constitutionally
      valid  method  to  boost  milk  production  is  to  spend   on   these
      institutions and not to create private assets under  these  Government
      Orders.


      6.    Free rice to 1.83 crore families under the PDS system, amounting
      to Rs.4500 crores.


      Comment by the appellant:


      Rice is already being distributed in  the  State  at  Rs.2  per  kilo.
      Under this scheme, rice is being distributed free of cost, as  a  pure
      populist measure.  As per the State’s own submissions, rice is  priced
      at Rs.2 under the Anthyodaya Anna  Yojana,  which  is  being  followed
      throughout the country.


16)   Mr. Datar, learned senior counsel for the appellant pointed  out  that
the Constitution of India does not permit free distribution  of  goods  such
as colour televisions, mixies, grinders, laptops since  these  are  consumer
goods and only benefit the persons to whom they are distributed and not  the
public at large.  Public spending on these goods  to  the  tune  of  Rs.9000
crores  far  outweighs  any  public  benefit  that  might  arise  from  such
distributions.  When the same ends can be efficiently achieved  without  the
creation of private assets, such  as  the  creation  of  Community  Computer
Centers  instead  of  distributing  laptops,  or  setting  up  of  Community
Televisions at the Panchayat  level  resorting  to  make  large  scale  free
distribution, it clearly  violate  Articles  162,  266(3)  and  282  of  the
Constitution.  It is further pointed out that the fact that CTVs  and  other
schemes of previous Government were  cancelled  by  the  present  Government
shows that these were not  for  “public  purpose”  but  only  to  serve  the
political objectives of a particular party.



II.   The distributions made by the  respondent  fall  foul  of  Article  14
since there is no reasonable classification

17)   The right to equality under Article 14 of  the  Constitution  requires
that the State must make a reasonable classification based  on  intelligible
differentia, and such classification must have a nexus with  the  object  of
the law.  In making free distributions,  the  State,  therefore,  must  show
that it has identified the class of persons to whom such  distributions  are
sought to be made using intelligible differentia, and that such  differentia
has a rational nexus with the object of the distribution.  As held in  Union
of India & Anr. vs. International Trading Co.  &  Anr.  2003  (5)  SCC  437,
Article 14 applies to matters  of  government  policy  and  such  policy  or
action would be  unconstitutional  if  it  fails  to  satisfy  the  test  of
reasonableness.
18)   This Court, in K.T. Moopil Nair vs.State of Kerala  AIR 1961  SC  552,
held that a statute can offend Article 14 if it groups together persons  who
are dissimilar.  In that case, a flat tax of Rs. 2 per acre  was  levied  on
land without ascertaining the income earning potential of such  land,  which
was struck down as unconstitutional.
19)   In the case on hand, the colour televisions, mixies and grinders  were
being  distributed  to  all  persons  having   ration   card.    While   the
distribution of these goods is supposedly being  made  to  help  people  who
cannot afford these items, the State has not made any attempt  to  find  out
if such persons already own a colour  television,  a  mixie  or  a  grinder.
Further, the differentia of a ration card has no  rational  nexus  with  the
object of free distribution of the  items  since  a  ration  card  does  not
indicate the income of the family or whether they already own these goods.
20)   Similarly, in another Scheme, the State  has  promised  to  distribute
free laptops to all the students studying in the State Board.   Again,  this
classification is  arbitrary  since  there  are  numerous  similarly  placed
students in Central Board schools who were being excluded  by  this  Scheme.
The Scheme also excludes commerce, law  and  medical  college  students  and
violates Article 14 by  not  providing  intelligible  differentia  having  a
nexus with such distribution.




III. Promises of free distribution of non-essential commodities in  election
manifesto amounts to an electoral bribe under Section 123 of the RP Act.

21)   Under Section 123(1)(A) of the RP Act, any “gift,  offer  or  promise”
by a candidate or his agent or by any  other  person,  with  the  object  of
inducing a person to vote at an election amounts to “bribery”,  which  is  a
“corrupt practice” under the said section.  The key element in this  section
is that the voter must be influenced to vote in a particular manner. It  has
been held in Richardson-Garnder vs. Ekykn, (1869) 19 LT 613 that the  making
of charitable gifts on an extensive scale would lead to  an  inference  that
this was made to influence voters.
22)   Mr. Datar pointed out that the plea that promises in the manifesto  do
not amount to bribery is completely baseless and finds  no  support  in  the
plain words of the statute or  in  decided  case  laws.   The  statute  very
clearly includes a “promise”  within  its  ambit,  and  an  unconstitutional
promise clearly falls foul of the language of Section 123  of  the  RP  Act.
Such ‘freebies’ are in form part of an election manifesto but  in  substance
is a  bribe  or  inducement  under  section  123.   If  such  practices  are
permitted, then the manifesto does indirectly what  a  candidate  cannot  do
directly.
23)   It is further pointed out that the promise of  distribution  was  made
at the time of elections and not after, and instead  of  focusing  on  basic
necessities, it was on free distributions which indicates that  the  promise
of free colour televisions, grinders, mixies, laptops, gold etc.,  was  only
made as an electoral bribe to induce voters.
24)   Mr. Datar further pointed out that the intent of Section  123  of  the
RP Act is to ensure that no  candidate  violates  the  level  playing  field
between the candidates.  Therefore, whether such promises are  made  by  the
political party or by the candidate himself is irrelevant.   The  manifesto,
where such illegal promises are made, implore the voters to  vote  for  that
particular party.
IV. The Comptroller and Auditor General of  India  has  a  duty  to  examine
expenditures even before they are deployed.

25)   The Comptroller and Auditor  General  of  India  is  a  constitutional
functionary appointed under Article 148 of the Constitution.  His main  role
is to audit the income and expenditure of the Government, Government  bodies
and state-run corporations.  The extent of his duties is listed out  in  the
Comptroller and Auditor General’s (Duties, Powers etc.) Act,  1971.  Section
13 of this Act states that the CAG shall audit all the expenditure from  the
Consolidated Fund of India, and of each State,  and  ascertain  whether  the
moneys so spent were “legally available for and applicable  to  the  service
of purpose to which they have been applied or charged.”
26)   Section 15 of the Act states that where grants  and  loans  have  been
given for any specific purpose  to  any  authority  or  body  other  than  a
foreign state or an international organization, the  CAG  has  the  duty  to
scrutinize the procedure by which the loan or grant has been made.
27)   The language of the  provision  suggests  that  the  role  of  CAG  is
limited to review.  However, this would rob the CAG of the power  to  ensure
that large-scale unauthorized spending of public funds, such as  these  free
distributions, does not take place.  The Section  must  be  given  purposive
interpretation  that  would  further  its  intent   to   ensure   that   the
government’s spending is only on purposes that are legally  allowable.   The
Chancery Division has held in Kingston Cotton Mills Co. Re [1896] 2  Ch  279
that an auditor is a “watchdog”.  To perform his role  as  a  watchdog,  the
CAG must be vigilant, watch for any large-scale  illegal  expenditures,  and
act upon them immediately.
V.    Safeguards must be built into schemes to ensure that the  distribution
is made for a public purpose, and is not misused.

28)   The Members of Parliament Local Area Development Scheme  (MPLADS)  was
challenged before this Court in Bhim Singh vs.  Union  of  India  and  Ors.,
(2010) 5 SCC 538 wherein the Constitution Bench of  this  Court  upheld  the
scheme on the grounds that there were three levels of safeguards built  into
the scheme to ensure that the funds  given  to  the  Members  of  Parliament
would not be misused.  This Court held as under:
      “8) The court can strike down a law or scheme only on the basis of its
      vires or unconstitutionality but not on the basis  of  its  viability.
      When a regime of accountability is available within the Scheme, it  is
      not proper for the Court to strike it down,  unless  it  violates  any
      constitutional principle.
      9)    In  the  present  Scheme,  an  accountability  regime  has  been
      provided.  Efforts must be made to make the regime more robust, but in
      its current form, cannot be struck down as unconstitutional.”

29)   The MPLAD Scheme clearly had  prohibitions  against  spending  on  the
creation of private assets and to make loans.  It is pointed out that  there
is no scheme of accountability in the  above  mentioned  promises  for  free
distributions,  hence,  learned  senior   counsel   prayed   for   necessary
guidelines for proper utilization of public funds.
Contentions by the Respondents:
Contentions of the State of Tamil Nadu:
30)   On the other hand, Mr. Shekhar Naphade,  learned  senior  counsel  for
the State of Tamil Nadu while disputing the above claim submitted  that  the
freebies, as promised in the election manifesto, would not  come  under  the
head “corrupt practices” and “electoral offences” in terms of  the  RP  Act.
He further submitted  that  in  view  of  the  mandates  in  the  Directives
Principles of State Policy in Part IV of the Constitution, it  is  incumbent
on the State Government to promote the welfare of the people, who are  below
the poverty line or unable to come up without their support.  In any  event,
according to learned senior counsel, for every  promise  formulated  in  the
form of election manifesto, after coming  to  power,  the  same  were  being
implemented by framing various schemes/guidelines/eligibility criteria  etc.
as well as with the approval of legislature. Thus, it  cannot  be  construed
as a waste of public money or prohibited by any Statute or Scheme.
31)   While elaborating his submissions, Mr.  Shekhar  Naphade  replied  for
the contentions made by the appellant under the following heads:
(I) Political Parties  are  not  State,  therefore,  not  amenable  to  writ
jurisdiction of the High Court under Article 226  or  writ  jurisdiction  of
the Supreme Court under Article 32 of  the  Constitution  of  India  or  any
other provisions of the Constitution. For corrupt practices, the  remedy  is
Election Petition.
(II)  Non-application  of  Vishaka  principle  and   the   difficulties   in
implementing the directions, if any, that may be issued by this Court.
(III) Promises of political parties do not constitute a corrupt practice.
(IV) The Schemes under challenge operate within  the  parameters  of  public
purpose and Article 14 of the Constitution has no role to play.
 (I) Political Parties are not State, therefore, not amenable  to  the  writ
jurisdiction of the High Court under Article 226 or  the  writ  jurisdiction
of the Hon’ble Supreme Court under Article 32 of the Constitution  of  India
or any other provisions of the  Constitution.  For  corrupt  practices,  the
remedy is an Election Petition.

32)   Learned senior counsel submitted that  a  political  party  is  not  a
statutory  Corporation.   Similarly,  a  political  party  is  also  not   a
Government.  It is also not an  instrumentality  or  agency  of  the  State.
None of the parameters laid down by several  judgments  of  this  court  for
identifying an agency or instrumentality of the State apply to  a  political
party and, therefore, no political party can be considered  as  a  State  or
any agency or instrumentality of the State, hence, no writ can  lie  against
a political party. [vide Federal Bank Ltd.  vs.  Sagar  Thomas  and  Others,
(2003) 10 SCC 733.
33)   Further, learned senior counsel put forth that it is the claim of  the
appellant that the promises like giving colour TVs, mixer-grinders,  laptops
etc.  constitute  a  corrupt  practice  and,  therefore,  must  vitiate   an
election.  If the promise of the above nature is a  corrupt  practice,  then
the only remedy for the appellant is to  file  an  Election  Petition  under
Section 80, 80A read with other provisions of the  RP  Act.   Under  Section
81, such an Election Petition must be filed within 45 days from the date  of
the election.  In the petition, the  appellant  must  set  out  clearly  and
specifically the corrupt practice that he complains of and also set  out  as
to how the returned candidate or his agent has committed  the  same  or  has
connived at the same.  An election Petition is to be tried on  evidence  and
therefore, the writ petition is not a remedy.
(II)  Non-application  of  Vishaka  principle  and   the   difficulties   in
implementing the directions, if any, that may be issued by this Court.

34)   It was submitted that Entry 72 of List-I of the VIIth Schedule to  the
Constitution  of  India  deals  with  election  to  Parliament   and   State
Legislative Assemblies.  In exercise  of  this  power,  the  Parliament  has
enacted the RP Act.  The Act, as originally enacted,  did  not  contain  any
provision relating to corrupt practice as contained in Section 123.  Section
123 defines and enumerates “corrupt  practices”  exhaustively.  Section  123
came as  a  result  of  recommendations  of  the  Select  Committee  of  the
Parliament on the basis of which the said Act was  amended  by  substituting
Chapter 1 in Part VII of the Act by Act No. 27  of  1956.   The  Legislature
has dealt with the subject of corrupt practice and  it  is  not  a  case  of
legislative vacuum.  The  field  of  corrupt  practice  is  covered  by  the
provisions  of  the  said  Act.  Once  the  Legislature  has  dealt  with  a
particular topic, then the Vishakha principle (Vishaka and Others  vs  State
of Rajasthan and Others (1997)  6  SCC  241)  has  no  applicability.   This
Court, in Vishaka (supra) and Aruna Ramachandra Shanbaug vs. Union of  India
and Others, (2011) 4 SCC 454 and other cases has clearly held that if  on  a
given topic there is no law enacted by a competent  legislature,  then  this
Court has power to issue directions under its inherent powers under  Article
142 and 141 of the Constitution and the said directions  would  operate  and
bind all concerned till the  competent  Legislature  enacts  a  law  on  the
concerned subject.  Whether the present  provisions  of  the  said  Act  are
adequate or not is a matter for the Parliament and the Parliament  alone  to
decide.  This Court, in exercise of powers under  Article  141  and  142  or
under any other provision of law, cannot issue a direction  to  include  any
practice not  specified  as  corrupt  practice  under  the  Act  as  Corrupt
Practice.
35)   Further, learned senior counsel  emphasized  on  the  difficulties  to
implement the guidelines, if any, framed  by  this  Court  by  referring  to
previous cases, viz., Union of India vs. Association for Democratic  Reforms
and Another (2002) 5 SCC 294 and People’s Union for Civil  Liberties  (PUCL)
and Anr. vs. Union of India and Anr.  (2003) 4 SCC 399.

(III) Promises of political parties do not constitute a corrupt practice.

36)   Learned senior counsel submitted that inasmuch as the words  mentioned
in Section 123 of the Act are clear and  unambiguous,  the  same  should  be
interpreted in the same manner as stated therein.  Section  123  of  the  RP
Act is a penal statute and ought to be strictly construed.   It  is  settled
principle of law that an allegation of “corrupt practice” must  be  strictly
proved  as  a  criminal  charge  and  the  principle  of  preponderance   of
probabilities would not apply to corrupt practices. In  M.J.  Jacob  vs.  A.
Narayanan and Others, (2009) 14 SCC 318, it has been held by this  Court  in
paras 13 and 15 as under:
   “13. It is well settled that in  an  election  petition  for  proving  an
   allegation of corrupt practice the standard of proof is like  that  in  a
   criminal case. In other words,  the  allegation  must  be  proved  beyond
   reasonable doubt, and if two views are possible then the benefit of doubt
   should go to the elected candidate vide Manmohan Kalia v. Yash, vide  SCC
   p. 502, para 7 in which it is stated:


      “7. … It is now well settled by several authorities of this Court that
      an allegation of corrupt practice must be  proved  as  strictly  as  a
      criminal charge and the principle of  preponderance  of  probabilities
      would not apply to corrupt practices envisaged by the Act  because  if
      this test is not applied a very serious prejudice would be  caused  to
      the elected candidate who may be disqualified  for  a  period  of  six
      years from fighting any election,  which  will  adversely  affect  the
      electoral process.”


   15. In Surinder Singh v. Hardial Singh, vide SCC p. 104, para 23  it  was
   observed:


      “23. … It is thus clear beyond any doubt that for over  20  years  the
      position has been uniformly accepted that charges of corrupt  practice
      are to be equated with criminal charges and proof thereof would be not
      preponderance of probabilities as in civil  action  but  proof  beyond
      reasonable doubt as in criminal trials.”


37)   In Baldev Singh Mann vs. Surjit Singh Dhiman, (2009) 1 SCC  633,  this
Court observed as under:
      “19. …. ….. The law is now well settled that the charge of  a  corrupt
      practice in an election petition should  be  proved  almost  like  the
      criminal charge. The standard of proof is high and the burden of proof
      is on the election petitioner. Mere preponderance of probabilities  is
      not enough, as may be the case in  a  civil  dispute.  Allegations  of
      corrupt practices should be clear and precise and the charge should be
      proved to the hilt as  in  a  criminal  trial  by  clear,  cogent  and
      credible evidence.


      21. The Court in a number of cases has held that the charge of corrupt
      practice is quasi-criminal in character and it has to be proved  as  a
      criminal charge and proved in the court. In Jeet Mohinder  Singh  case
      the Court observed as under:


      “(ii) Charge of corrupt practice is quasi-criminal  in  character.  If
      substantiated it leads not only to the setting aside of  the  election
      of the successful candidate, but also of  his  being  disqualified  to
      contest an election for a certain period. It may entail extinction  of
      a person’s public life and political career. A trial  of  an  election
      petition though within the realm of civil law is akin to  trial  on  a
      criminal charge. Two consequences  follow.  Firstly,  the  allegations
      relating to commission of a corrupt practice  should  be  sufficiently
      clear and stated precisely so as to afford the person charged  a  full
      opportunity of meeting the same. Secondly, the  charges  when  put  to
      issue should be proved by clear,  cogent  and  credible  evidence.  To
      prove charge of corrupt practice a mere preponderance of probabilities
      would not be  enough.  There  would  be  a  presumption  of  innocence
      available to the person charged. The charge shall have to be proved to
      the hilt, the standard of proof  being  the  same  as  in  a  criminal
      trial.”


38)   It is further submitted that the manifesto of the political  party  in
question promises to achieve a social order removing economic  inequalities,
attain a social plane and attempts to reduce the  degradations  existing  in
our society where only a certain class of people are elevated  and  entitled
to economic upliftment.  The mandate for social and economic  transformation
requires that material resources  or  their  ownership  and  control  be  so
distributed as to subserve the common good.
39)   In Samatha vs. State of A.P. and Others, (1997) 8 SCC  191,  in  paras
76 and 79, it has been held as under:
      “76.  Social  and  economic  democracy  is  the  foundation  on  which
      political democracy would be a way of life in the Indian  polity.  Law
      as a social engineering  is  to  create  just  social  order  removing
      inequalities in social and economic life, socio-economic  disabilities
      with  which  poor  people  are  languishing  by   providing   positive
      opportunities and facilities to individuals and groups of  people.  Dr
      B.R. Ambedkar, in his closing speech in the Constituent Assembly on 25-
      11-1949, had lucidly elucidated thus:


      “… What does social democracy mean? It  means  a  way  of  life  which
      recognises liberty, equality and fraternity as the principles of life.
      These principles of liberty, equality and fraternity  are  not  to  be
      treated as separate items in a trinity. They form a union  of  trinity
      in the sense that to divorce one from the other is to defeat the  very
      purpose of  democracy.  Liberty  cannot  be  divorced  from  equality,
      equality cannot be divorced from liberty. Nor can liberty and equality
      be divorced from fraternity. Without equality, liberty  would  produce
      the supremacy of the few over the many. Equality without liberty would
      kill individual initiative. Without fraternity, liberty  and  equality
      could not become a natural  course  of  things.  It  would  require  a
      constable to enforce them. We must begin  by  acknowledging  the  fact
      that there is complete absence of two things in Indian society. One of
      these is equality. On the social plane, we have  in  India  a  society
      based on the principle of graded inequality which means elevation  for
      some and degradation for others. On the  economic  plane,  we  have  a
      society in which there are some who have  immense  wealth  as  against
      many who live in abject poverty. On the 26th  January,  1950,  we  are
      going to enter into a life of contradictions. In politics we will have
      equality and in social and economic life we will have  inequality.  In
      politics we will be recognizing the principle of one man one vote  and
      one vote one value. In our social and  economic  life,  we  shall,  by
      reason of our social and economic  structure,  continue  to  deny  the
      principle of one man one value. How long shall  we  continue  to  live
      this life of contradictions?  How  long  shall  we  continue  to  deny
      equality in our social and economic life? If we continue  to  deny  it
      for long, we will do so only by putting  our  political  democracy  in
      peril. We must remove this  contradiction  at  the  earliest  possible
      moment or else those who suffer  from  inequality  will  blow  up  the
      structure  of  political  democracy  which  this   Assembly   has   so
      laboriously built up.”
      (Vide B. Shiva Rao’s  The  Framing  of  India’s  Constitution:  Select
      Documents, Vol. IV, pp. 944-45.)

      79. It is necessary to consider at this juncture the  meaning  of  the
      word “socialism”  envisaged  in  the  Preamble  of  the  Constitution.
      Establishment of the egalitarian social order through rule of  law  is
      the basic structure of the Constitution. The  Fundamental  Rights  and
      the Directive Principles are the means, as two wheels of the  chariot,
      to  achieve  the  above  object  of  democratic  socialism.  The  word
      “socialist” used in the Preamble must be read from the goals  Articles
      14, 15, 16, 17, 21, 23, 38, 39, 46 and all other cognate articles seek
      to establish, i.e., to reduce inequalities in income and status and to
      provide equality of opportunity and facilities. Social justice enjoins
      the Court to uphold the  Government’s  endeavour  to  remove  economic
      inequalities, to provide decent standard of living to the poor and  to
      protect the interests of the weaker sections of the society so  as  to
      assimilate all the sections of the society  in  a  secular  integrated
      socialist Bharat with dignity of person  and  equality  of  status  to
      all.”



40)   In Bhim Singh (supra), a Constitution Bench of this Court observed  as
under:
      “58. The above analysis shows that Article 282 can be  the  source  of
      power for emergent transfer of funds,  like  the  MPLAD  Scheme.  Even
      otherwise, the MPLAD Scheme is voted upon and sanctioned by Parliament
      every year as a scheme for community development. We have already held
      that the scheme of the Constitution of India is that the power of  the
      Union or State Legislature is not limited to the legislative powers to
      incur expenditure only in respect of powers conferred  upon  it  under
      the Seventh Schedule, but it can incur expenditure on any purpose  not
      included within its legislative powers. However, the said purpose must
      be “public purpose”. Judicial interference  is  permissible  when  the
      action of the Government is unconstitutional and not when such  action
      is not wise or that the extent of expenditure is not for the  good  of
      the State. We are of the view that all such questions must be  debated
      and decided in the legislature and not in court.


      95. This argument is liable to be rejected as it is not based  on  any
      scientific analysis or empirical data. We also find  this  argument  a
      half-hearted attempt to contest the constitutionality of  the  Scheme.
      MPLADS makes funds available to  the  sitting  MPs  for  developmental
      work. If the MP utilises the funds properly, it would  result  in  his
      better performance. If that leads to people voting for  the  incumbent
      candidate, it certainly does not violate any  principle  of  free  and
      fair elections.


      96. As we have already noted, MPs are permitted to recommend  specific
      kinds of works for the welfare of the  people  i.e.  which  relate  to
      development and building of durable community assets (as  provided  by
      Clause 1.3 of the Guidelines). These works are to be  conducted  after
      approval of relevant authorities. In such circumstances, it cannot  be
      claimed that these works amount to  an  unfair  advantage  or  corrupt
      practices within the meaning of the Representation of the People  Act,
      1951. Of course such spending is subject to  the  above  Act  and  the
      regulations of the Election Commission.”

 (IV) The Schemes under challenge operate within the  parameters  of  public
purpose and Article 14 of the Constitution has no role to play.

41)   The argument of the appellant that  giving  of  colour  TVs,  laptops,
mixer-grinders etc. on the basis of the manifesto of the  party  that  forms
the Government is not an expense for a public  purpose.   This  argument  is
devoid of any merit according to learned senior counsel  for  the  State  of
Tamil Nadu.  It  was  submitted  that  the  concept  of  State  Largesse  is
essentially linked to Directive Principles of  State  Policy.   Whether  the
State should frame a scheme, which directly gives benefits  to  improve  the
living standards or indirectly by increasing the  means  of  livelihood,  is
for the State to  decide.   The  preamble  to  the  Constitution  recognizes
Socialism as one of the pillars of Indian Democracy.  The preamble has  been
held to be a part of the Constitution by a  catena  of  judgments  including
Keshavanand Bharati vs. State of  Kerala  (1973)  4  SCC  1461.   The  State
largesse is directly linked to the principle of  Socialism  and,  therefore,
it is too late in the day for anybody to contend that the Government  giving
colour TVs, laptops, mixer-grinders, etc. that too to the  eligible  persons
as prescribed by way of Government Order is not a public purpose.   For  the
same reasons, it must be held that it is a part of  Government  function  to
take measures in connection with Government largesse.
42) It is further submitted that the political  parties  in  their  election
manifesto promised to raise the standard of living  of  the  people  and  to
formulate a scheme/policy for the upliftment of the poor.  The  distribution
of basic necessities in today’s time like TVs, mixers, fans and  laptops  to
eligible persons fixing parameters, can by  no  stretch  of  imagination  be
said to be State largesse.  A three-Judge Bench  of  this  Court  in  Deepak
Theatre, Dhuri vs. State of Punjab and Others, 1992 Supp (1) SCC  684,  held
as under:
      “5. Witnessing a motion picture  has  become  an  amusement  to  every
      person; a reliever to the  weary  and  fatigued;  a  reveller  to  the
      pleasure seeker; an imparter of education and enlightenment enlivening
      to news and current  events;  disseminator  of  scientific  knowledge;
      perpetuator  of  cultural  and  spiritual  heritage,  to  the  teeming
      illiterate majority of population. Thus, cinemas have become tools  to
      promote welfare of the people to secure and protect as effectively  as
      it may a social order as per directives of the State  policy  enjoined
      under Article 38 of  the  Constitution.  Mass  media,  through  motion
      picture has  thus  become  the  vehicle  of  coverage  to  disseminate
      cultural heritage, knowledge, etc. The passage of time  made  manifest
      this growing imperative and the consequential  need  to  provide  easy
      access to all sections of the society to seek admission  into  theatre
      as per his paying capacity.”

43)   The grievance of the appellant is that the public resources are  being
used for the benefit of individuals. According  to  learned  senior  counsel
for the respondent,  this  argument  is  completely  misconceived.   It  was
submitted that in catena of cases, this Court has held  that  while  judging
the constitutional validity of any law or any State  action,  the  Directive
Principles of the State Policy  can  be  taken  into  account.   Article  38
contemplates that the State shall strive  to  promote  the  welfare  of  the
people.  Article 39 contemplates  that  the  State  shall  take  actions  to
provide adequate means  of  livelihood  and  for  distribution  of  material
resources  of  the  community  on  an  egalitarian  principle.   Article  41
contemplates that the State shall render assistance to citizens  in  certain
circumstances and also in cases of  undeserved  want.   Article  43  directs
that the State shall “endeavour  to  secure  to  all  workers,  by  suitable
legislation or economic organisation or  any  other  way  to  ensure  decent
standard of life and full enjoyment  of  leisure  and  social  and  cultural
opportunities to the workers”.  Similarly, Article 45 contemplates that  the
State shall endeavour to provide early childhood care and education  to  all
children below the age of 6 years and Article 46 says that the  State  shall
promote educational and economic interests of the  weaker  sections  of  the
people.  Article 47 contemplates that the State shall take  steps  to  raise
the level  of  nutrition  and  the  standard  of  living.   The  concept  of
livelihood and standard of living are bound to change in their content  from
time to time.  This Court has dealt with the concept of  minimum  wage,  the
fair wage and the living wage while dealing  with  industrial  disputes  and
has noted that these concepts are bound to change from time to  time.   What
was once considered to be a luxury can become a necessity.  The  concept  of
livelihood is no longer confined to a bare physical  survival  in  terms  of
food, clothing and shelter, but  also  now  must  necessarily  include  some
provision for  medicine,  transport,  education,  recreation  etc.   How  to
implement the directive principles of State Policy is a  matter  within  the
domain of the Government, hence, the  State  distributing  largesse  in  the
form  of  distribution  of  colour  TVs,  laptops,  mixer-grinders  etc.  to
eligible  and  deserving  persons  is  directly  related  to  the  directive
principles of the State Policy.
44)   The other facet of the argument is that this largesse  is  distributed
irrespective of the income level and, therefore, violative of Article 14  as
unequals are treated equally.  Learned senior counsel  submitted  that  this
principle of not to treat unequals as equals has no applicability as far  as
State largesse is concerned.  This principle applies only where the  law  or
the State action imposes some burden on  the  citizen  either  financial  or
otherwise.
45)   Article 14 essentially contemplates equality  in  its  absolute  sense
and classification can be taken recourse to if the State is  unable  or  the
State policy does not contemplate the same benefit or  treatment  to  people
who are not similarly situated.  It is the philosophical  sense  decoded  by
this Court in the first part of Article 14 which is equal treatment for  all
without any distinction.  This is the concept of formal  equality  which  is
not necessarily an antithesis to Article 14.  The concept of equality  based
on classification is proportional equality.   The  formal  equality  applies
when the State is in a position to frame a scheme or  law  which  gives  the
same benefit to all without any distinction and  the  proportional  equality
applies when the State frames a law or a Scheme which gives benefit only  to
people who form a distinct  class.   It  is  in  the  case  of  proportional
equality that the principles of intelligible differentia  having  reasonable
nexus to the object of legislation gets  attracted.   Article  14  does  not
prohibit formal equality.  The Directive Principles  of  State  Policy  save
proportional  equality  from  falling   in   foul   with   formal   equality
contemplated by Article 14.
Contentions of the Union of India, CAG and Election Commission:

46)   Mr. P.P. Malhotra, learned ASG also  reiterated  the  stand  taken  by
learned senior counsel for the State.  It is the stand of the CAG that  they
have no role at this juncture, particularly, with reference  to  the  prayer
sought  for.   Ms.  Meenakshi  Arora,  learned  counsel  for  the   Election
Commission of India submitted that with the existing provisions  in  the  RP
Act, Election Commission is performing its duties, however,  if  this  Court
frames any further guidelines, they are ready to implement the same.
47)   We have  carefully  considered  the  rival  contentions,  perused  the
relevant provisions,  various  Government  orders,  guidelines  and  details
furnished  in  the  counter  affidavit.  The  following  points  arise   for
consideration:
Points for Consideration:
(i)   Whether the promises made by the political  parties  in  the  election
manifesto would amount to ‘corrupt practices’ as per Section 123 of  the  RP
Act?
(ii)  Whether the schemes under challenge are within  the  ambit  of  public
purpose and if yes, is it violative of Article 14?
(iii)  Whether  this  Court  has  inherent  power  to  issue  guidelines  by
application of Vishaka principle?
(iv)  Whether the Comptroller and Auditor General of India  has  a  duty  to
examine expenditures even before they are deployed?
(v)   Whether the writ jurisdiction will lie against a political party?
Discussion:

Issue No. 1

Whether the promises  made  by  the  political  parties  in  their  election
manifestos would amount to ‘corrupt practices’ as per  Section  123  of  the
Representation of the People Act, 1951?

48)   Before going into the acceptability or merits  of  the  claim  of  the
appellant and the stand of the respondents, it  is  desirable  to  reproduce
certain provisions of the RP Act.   Part  VII  of  the  RP  Act  deals  with
“corrupt practices” and “electoral offences” which was  brought  into  force
with effect from 28.08.1956.  Chapter I of  Part  VII  deals  with  “corrupt
practices”.  Section 123 is the only Section relevant for our purpose  which
reads thus:-
      “123. Corrupt practices.- The following shall be deemed to be  corrupt
      practices for the purposes of this Act:


      (1) "Bribery", that is to say-
      (A) any gift, offer or promise by a candidate or his agent or  by  any
      other person with the consent of a candidate or his election agent  of
      any gratification, to any person whomsoever, with the object, directly
      or indirectly of inducing-
      (a) a person to stand or not to stand as, or [to withdraw  or  not  to
      withdraw] from being a candidate at an election, or
      (b) an elector to vote or refrain from voting at an election, or as  a
      reward to-
      (i) a person for  having  so  stood  or  not  stood,  or  for  [having
      withdrawn or not having withdrawn] his candidature; or
      (ii) an elector for having voted or refrained from voting;


      (B) the receipt  of,  or  agreement  to  receive,  any  gratification,
      whether as a motive or a reward-
      (a) by a person for standing or not standing as, or  for  [withdrawing
      or not withdrawing] from being, a candidate; or
      (b) by any person whomsoever for  himself  or  any  other  person  for
      voting or refraining from voting, or inducing or attempting to  induce
      any elector to vote or refrain  from  voting,  or  any  candidate  [to
      withdraw or not to withdraw] his candidature.


      Explanation.- For the purposes of this clause the term" gratification"
      is  not  restricted  to  pecuniary  gratifications  or  gratifications
      estimable in money and it includes all forms of entertainment and  all
      forms of employment for reward but it does not include the payment  of
      any expenses bona fide incurred at, or for the purpose of,  any  elec-
      tion and duly entered in the account of election expenses referred  to
      in Section 78.


      (2)  Undue  influence,  that  is  to  say,  any  direct  or   indirect
      interference or attempt to interfere on the part of the  candidate  or
      his agent, or of any other person [with the consent of  the  candidate
      or his election agent], with the free exercise of any electoral right:
      Provided that-
      (a) without prejudice to the generality  of  the  provisions  of  this
      clause any such person as is referred to therein who-
      (i) threatens any candidate or any elector, or any person  in  whom  a
      candidate or an  elector  is  interested,  with  injury  of  any  kind
      including social ostracism and ex- communication or expulsion from any
      caste or community; or
      (ii) induces or attempts to  induce  a  candidate  or  an  elector  to
      believe that he, or any person in whom he is interested,  will  become
      or will be rendered an  object  of  divine  displeasure  or  spiritual
      censure,
      shall be deemed to interfere with the free exercise of  the  electoral
      right of such candidate or elector within the meaning of this clause;
      (b) a declaration of public policy, or a promise of public action,  or
      the mere exercise of a legal right without intent to interfere with an
      electoral right, shall not be deemed to  be  interference  within  the
      meaning of this clause.


      (3) The appeal by a candidate or his agent or by any other person with
      the consent of a candidate or his election agent to  vote  or  refrain
      from voting for any person on the ground of his religion, race, caste,
      community or language or the use of, or appeal to religious symbols or
      the use of, or appeal to, national symbols, such as the national  flag
      or the national emblem, for the furtherance of the  prospects  of  the
      election of that candidate or for prejudicially affecting the election
      of any candidate:


      Provided that no symbol allotted under this Act to a  candidate  shall
      be deemed to be a religious  symbol  or  a  national  symbol  for  the
      purposes of this clause.


      (3A) The promotion of, or attempt to promote, feelings  of  enmity  or
      hatred between different classes of the citizens of India  on  grounds
      of religion, race, caste, community, or language, by  a  candidate  or
      his agent or any other person with the consent of a candidate  or  his
      election agent for the furtherance of the prospects of the election of
      that candidate or for prejudicially  affecting  the  election  of  any
      candidate.


      (3B) The propagation of the practice or the commission of sati or  its
      glorification by a candidate or his agent or any other person with the
      consent of the candidate or his election agent for the furtherance  of
      the prospects of the election of that candidate or  for  prejudicially
      affecting the election of any candidate.
      Explanation.-  For  the  purposes  of   this   clause,"   sati"   and"
      glorification"  in  relation  to  sati   shall   have   the   meanings
      respectively assigned to them in the Commission of  Sati  (Prevention)
      Act, 1987 .


      (4) The publication by a candidate  or  his  agent  or  by  any  other
      Person, [with the consent of a candidate or his  election  agent],  of
      any statement of fact which is false, and which he either believes  to
      be false or does not believe to be true, in relation to  the  personal
      character  or  conduct  of  any  candidate,  or  in  relation  to  the
      candidature, or  withdrawal  [of  any  candidate,  being  a  statement
      reasonably calculated to prejudice the prospects of that candidate'  s
      election.


      (5) The hiring or procuring, whether on payment or otherwise,  of  any
      vehicle or vessel by a candidate or his agent or by any  other  person
      with the consent of a candidate or his election agent], [or the use of
      such vehicles or vessel for the free conveyance] of any elector (other
      than the candidate himself, the members of his family or his agent) to
      or from any polling station provided under Section 25 or a place fixed
      under sub- section (1) of Section 29 for the poll:


      Provided that the hiring of a vehicle or vessel by an  elector  or  by
      several electors at their joint costs for the purpose of conveying him
      or them to and from any such polling station or place  fixed  for  the
      poll shall not be deemed to be a corrupt practice under this clause if
      the vehicle or vessel so hired is a vehicle or vessel not propelled by
      mechanical power:


      Provided further that the use  of  any  public  transport  vehicle  or
      vessel or any tramcar or railway carriage by any elector  at  his  own
      cost for the purpose of going to  or  coming  from  any  such  polling
      station or place fixed for the poll  shall  not  be  deemed  to  be  a
      corrupt, practice under this clause.


      Explanation.- In this  clause,  the  expression"  vehicle"  means  any
      vehicle used or  capable  of  being  used  for  the  purpose  of  road
      transport, whether propelled by  mechanical  power  or  otherwise  and
      whether used for drawing other vehicles or otherwise.


      (6) The incurring or authorizing of expenditure  in  contravention  of
      Section 77.


      (7) The obtaining or procuring or abetting or attempting to obtain  or
      procure by a candidate or his agent or, by any other person [with  the
      consent of a candidate or his election agent], any  assistance  (other
      than the giving of vote) for the furtherance of the prospects of  that
      candidate's election, from any person in the service of the Government
      and belonging to any of the following classes, namely:-
      (a) gazetted officers;
      (b) stipendiary judges and magistrates;
      (c) members of the armed forces of the Union;
      (d) members of the police forces;
      (e) excise officers;
      (f) revenue officers other than  village  revenue  officers  known  as
      lambardars, malguzars, patels, deshmukhs or by any other  name,  whose
      duty is to collect land revenue and who are remunerated by a share of,
      or commission on, the amount of land revenue collected by them but who
      do not discharge any police functions; and]
      (g) such other class of persons in the service of  the  Government  as
      may be prescribed:


      Provided that where any person, in the service of the  Government  and
      belonging to any  of  the  classes  aforesaid,  in  the  discharge  or
      purported discharge of his official duty, makes  any  arrangements  or
      provides any, facilities or does any other act or thing for to  or  in
      relation to any candidate or his agent or any other person acting with
      the consent of the candidate or his election agent, (whether by reason
      of the office held by the candidate or for  any  other  reason),  such
      arrangements, facilities or act or thing shall not  be  deemed  to  be
      assistance for the furtherance of the prospects of that  candidate'  s
      election.


      (h) class of persons in the service of a local authority,  university,
      government company or institution or concern or undertaking  appointed
      or deputed by the Election Commission in connection with  the  conduct
      of elections.


      (8) Booth Capturing by a candidate or his agent or other person.


      Explanation.- (1) In this Section the expression" agent"  includes  an
      election agent, a polling agent and any person who  is  held  to  have
      acted as an agent in connection with the election with the consent  of
      the candidate.
      (2) For the purposes of clause (7), a person shall be deemed to assist
      in the furtherance of the prospects of a candidate' s election  if  he
      acts as an election agent of that candidate.
      (3) For the purposes of clause (7), notwithstanding anything contained
      in any other law, the publication  in  the  Official  Gazette  of  the
      appointment, resignation, termination of service, dismissal or removal
      from service of a person in the  service  of  the  Central  Government
      (including a person serving in connection with the administration of a
      Union territory) or of a State Government shall be conclusive proof-
      (i)  of  such  appointment,  resignation,  termination   of   service,
      dismissal or removal from service, as the case may be, and
      (ii) where the date of taking effect of such appointment, resignation,
      termination of service, dismissal or removal from service, as the case
      may be, is stated in such publication, also  of  the  fact  that  such
      person was appointed with effect from the said date, or in the case of
      resignation,  termination  of  service,  dismissal  or  removal   from
      service, such person ceased to be in such service with effect from the
      said date.]
      (4) For the purposes of clause (8)," booth capturing" shall  have  the
      same meaning as in Section 135A.”

49)   Keeping the parameters fixed in the above Section, we have to  analyze
the claim of both the parties hereunder.  A perusal of sub-sections  1-8  of
Section 123 makes it clear that it speaks only  about  a  candidate  or  his
agent or any other person.   There  is  no  word  about  political  parties.
Taking note of the conditions mandated in those sub-sections,  let  us  test
the respective stand of both the parties.

50)    For  deciding  the  issue  whether  the  contents  of  the  political
manifesto would constitute a corrupt practice under Section 123 of  RP  Act,
it is imperative to  refer  to  the  intention  of  the  legislature  behind
incorporating the respective section. The purpose of  incorporating  Section
123 of the RP Act is to ensure that elections are held in a  free  and  fair
manner.


51)   The object of provisions relating to corrupt practices was  elucidated
by this Court in Patangrao Kadam vs.  Prithviraj  Sayajirao  Yadav  Deshmukh
and Ors. (2001) 3 SCC 594 as follows:-


      14. “….Fair and free elections are essential requisites  to  maintain
    the purity of election and to  sustain  the  faith  of  the  people  in
    election itself in a democratic set up. Clean, efficient and benevolent
    administration are the essential features of good governance  which  in
    turn depends upon persons of competency and good character. Hence those
    indulging in corrupt practices at an  election  cannot  be  spared  and
    allowed to pollute the election process and this purpose is  sought  to
    be achieved by these provisions contained in the RP Act.”


52)   With this background, let us analyze the contention of the  appellant.
The gist of appellant’s argument  is  that  promises  of  freebies  such  as
colour TVs, mixer-grinders, laptops, etc., are in form part of  an  election
manifesto of a political party but in substance is  a  bribe  or  inducement
under Section 123. Thus, it is the stand of the appellant that  the  promise
of this nature  indeed  induces  the  voters  thereby  affecting  the  level
playing field between the candidates, which in turn disrupts free  and  fair
election. Therefore, the appellants suggested for  construing  the  promises
made in the election manifesto as a corrupt practice under  Section  123  of
RP Act. He mainly relied on the principle  that  one  cannot  do  indirectly
what it cannot do directly.


53)   As appealing this argument may sound good, the implementation of  this
suggestion becomes difficult on more than one count. Firstly, if we  are  to
declare that every kind of promises made in  the  election  manifesto  is  a
corrupt practice, this will be  flawed.  Since  all  promises  made  in  the
election manifesto are  not  necessarily  promising  freebies  per  se,  for
instance, the election manifesto of a political party promising  to  develop
a particular locality if they come into power,  or  promising  cent  percent
employment for all young graduates, or such other acts. Therefore,  it  will
be misleading to construe that all promises in the election manifesto  would
amount to corrupt practice. Likewise, it is not within the  domain  of  this
Court to legislate what kind of promises  can  or  cannot  be  made  in  the
election manifesto.

54)   Secondly, the manifesto of a political party is  a  statement  of  its
policy.  The question of implementing  the  manifesto  arises  only  if  the
political party  forms  a  Government.   It  is  the  promise  of  a  future
Government.  It is not a promise of an individual  candidate.   Section  123
and other relevant provisions, upon  their  true  construction,  contemplate
corrupt practice by individual  candidate  or  his  agent.   Moreover,  such
corrupt practice is directly linked to his own election irrespective of  the
question whether his party forms a Government or  not.   The  provisions  of
the RP Act clearly draw a distinction between an  individual  candidate  put
up by a political party and the political party as such.  The provisions  of
the said Act prohibit an individual candidate from  resorting  to  promises,
which constitute a corrupt practice within the meaning  of  Section  123  of
the RP Act.  The provisions of the said Act place no fetter on the power  of
the political parties to make promises in the election manifesto.
55)   Thirdly, the provisions relating to  corrupt  practice  are  penal  in
nature and, therefore, the rule of  strict  interpretation  must  apply  and
hence, promises by a political party cannot constitute  a  corrupt  practice
on the part of the political party as the political party is not within  the
sweep of the provisions relating to  corrupt  practices.   As  the  rule  of
strict interpretation applies, there is no  scope  for  applying  provisions
relating to corrupt practice contained in the said Act to the  manifesto  of
a political party.

56)   Lastly, it is settled law that the courts  cannot  issue  a  direction
for the purpose of laying down a new norm for  characterizing  any  practice
as corrupt practice.  Such directions would amount  to  amending  provisions
of the said Act.  The power to make  law  exclusively  vests  in  the  Union
Parliament and as long as the field is covered by parliamentary  enactments,
no directions can be issued as sought by the appellant. As  an  outcome,  we
are not inclined to hold the promises  made  by  the  political  parties  in
their election manifesto as corrupt practice under Section  123  of  the  RP
Act.


Issue No. 2


Whether the schemes under challenge are within the ambit of  public  purpose
and if yes, is it violative of Article 14?


57)   The concept of State  largesse  is  essentially  linked  to  Directive
Principles of State Policy. Whether the State should frame a  scheme,  which
directly gives benefits to improve the living  standards  or  indirectly  by
increasing the means of livelihood, is for the State to decide and the  role
of the court is very limited in this regard.

58)   It  is  not  in  dispute  that  television  is  a  widely  used  tele-
communication medium for receiving moving images.  Today, television  has  a
lot  of  positive  effects  and  influences  on  our  society  and  culture.
Television gives helpful information and it is not an  equipment  aimed  for
entertainment alone.  The  State  Government  has  also  asserted  that  the
purpose of  distributing  colour  television  sets  is  not  restricted  for
providing recreation but to provide general knowledge to  the  people,  more
particularly, to the household women.
59)   On behalf of the State of Tamil Nadu, it was explained that  in  order
to promote the  welfare  of  the  people  by  securing  and  protecting,  as
effectively as it may, a social order in which social and  economic  justice
can be achieved, the Government of Tamil Nadu has announced certain  welfare
schemes for raising the standard  of  living  of  the  people  by  providing
assistance  to  the  deserving  ones  as  envisaged  under   the   Directive
Principles of the Indian Constitution.  In order to implement those  schemes
effectively, the Government of Tamil Nadu had exclusively formed  a  Special
Programme  Implementation  Department.   Guidelines  for  each  Scheme  were
framed to identify the beneficiaries and mode of distribution.
60)   It is pointed  out  by  the  State  that  the  Government  has  issued
necessary orders for the following schemes:
(i)   Marriage Assistance Scheme;
(ii)  Distribution of Milch Animals and Goats;
(iii) Solar Powered Green House Scheme;
(iv)  Laptop Computer to students;
(v)   Free Rice Scheme; and
(vi)  Free distribution of Electric Fans, Mixies and Grinders to women.
The Schemes are as under:
“Marriage Assistance Scheme
1)    The economic status of a family plays a vital  role  in  enabling  the
   poor parents who have daughters  to  fulfill  the  social  obligation  of
   marriage.  Various Marriage Assistance Schemes being implemented  by  the
   Government of Tamil Nadu are  in  vogue  to  benefit  the  poor  and  the
   downtrodden for whom the marriage ceremony of their  daughters  impose  a
   heavy burden.  There are at present 5  marriage  assistance  schemes  and
   they are as follows:

(i)   Moovalur Ramamirtham Ammaiyar Ninaivu Marriage Assistance  Scheme  for
   poor girls
(ii)  Dr. Dharmambal Ammaiyar Ninaivu Widow  Re-marriage  Assistance  Scheme
   to encourage the remarriage of young widows
(iii)       E.V.R.  Maniammaiyar  Ninaivu  Marriage  Assistance  Scheme  for
   daughters of poor widows
(iv)  Annai Theresa Ninaivu Marriage Marriage Assistance Scheme  for  Orphan
   Girls.
(v)         Dr. Muthulakshmi Reddy Minaivu Inter-caste  Marriage  Assistance
   Scheme

   2) With the extraordinary rise in the price of gold,  poor  families  and
   the abovementioned vulnerable categories find it difficult to buy even  a
   small quantity of  gold  for  the  traditional  ‘Thirumangalyam’  (Mangal
   Sutra).  To mitigate the hardship of the  poor  families  and  vulnerable
   sections, the State Government has ordered the provision of  4  gms  (1/2
   sovereign) 22 ct. gold coin for making the ‘Thirumangalyam’  in  addition
   to the already existing financial assistance of  Rs.25,000/-.   Moreover,
   with the aim of encouraging higher education  among  women,  the  present
   Government has also  introduced  a  new  scheme  of  providing  financial
   assistance of Rs.50,000/- for graduates/diploma holders  along  with  the
   four grams 22 carat gold coin for making the ‘Thirumangalayam’.


   3) The guidelines for sanction of assistance under the  various  Marriage
      Assistance Scheme include that the annual income of the family  should
      not exceed Rs.24,000/- and the minimum age limit for the girls  should
      be 18 years.  The detailed guidelines have been  issued  in  G.O.(Ms.)
      No. 49, SW & NMP Dept. dated 26.07.2011.  The  details  pertaining  to
      each scheme are as follows:


(A) Moovalur Ramamiratham Ammaiyar Ninaiyu Marriage Assistance Scheme


   |1.  |Objectives of the Scheme     |To help the poor parents    |
|    |                             |financially in getting their|
|    |                             |daughter’s married and to   |
|    |                             |promote the educational     |
|    |                             |status of poor girls.       |
|2.  |Assistance provided and      |Rs.25,000/- along with 4    |
|    |Educational Qualification    |gms. gold coin (for those   |
|    |                             |who have studies up to 10th |
|    |                             |std., Vth Std, for Scheduled|
|    |                             |Tribes)                     |
|3.  |To whom the benefit is due   |Girls belonging to poor     |
|    |                             |families                    |
|4.  |When the benefit is due      |Before marriage             |
|5.  |Eligibility Criteria         |Bride should have completed |
|    |a)  Age Limit                |18 years of age             |
|    |b)  Income Limit             |Not exceeding Rs.24,000/-   |
|    |                             |per annum                   |
|    |c)  Other criteria           |Only one girl from a family |
|    |                             |is eligible                 |




(B) Dr. Dharmambal Ammaiyar  Ninaivu  Widow  Re-marriage  Assistance  Scheme

| 1. |Objectives of the Scheme     |To encourage widow          |
|    |                             |remarriage and rehabilitate |
|    |                             |widows                      |
|2.  |Assistance provided and      |Rs.25,000/- along with 4    |
|    |Educational Qualification    |gms. gold coin (for those   |
|    |                             |who have studies up to 10th |
|    |                             |std., Vth Std, for Scheduled|
|    |                             |Tribes)                     |
|    |                             |Rs. 50,000/- along with 4   |
|    |                             |gms. gold coin (for Graduate|
|    |                             |and diploma holders)        |
|3.  |To whom the benefit is due   |To the couple               |
|4.  |When the benefit is due      |Within 6 months from the    |
|    |                             |date of marriage            |
|5.  |Eligibility Criteria         |Minimum age of 20 years for |
|    |a)  Age Limit                |the bride and below 40 years|
|    |                             |for the bridegroom.         |
|    |b)  Income Limit             |No income ceiling.          |


(C) E.V.R. Maniammaiyar  Ninaivu  Marriage  Scheme  for  daughters  of  poor
widows


|1.  |Objectives of the Scheme     |To help the poor widows by  |
|    |                             |providing financial         |
|    |                             |assistance for the marriage |
|    |                             |of their daughters          |
|2.  |Assistance provided and      |Rs.25,000/- along with 4    |
|    |Educational Qualification    |gms. gold coin (for those   |
|    |                             |who have studies up to 10th |
|    |                             |std., Vth Std, for Scheduled|
|    |                             |Tribes)                     |
|    |                             |Rs. 50,000/- along with 4   |
|    |                             |gms. gold coin (for Graduate|
|    |                             |and diploma holders)        |
|3.  |To whom the benefit is due   |Daughter of poor widow      |
|4.  |When the benefit is due      |Before marriage             |
|5.  |Eligibility Criteria         |18 years                    |
|    |a)  Age Limit                |                            |
|    |b)  Income Limit             |Not exceeding Rs.24,000/-   |
|    |                             |per annum                   |
|    |c)  Other Criteria           |Only one daughter of a poor |
|    |                             |widow is eligible           |



(D)  Annai Theresa Ninaivu Marriage Assistance Scheme for Orphan Girls


|1.  |Objectives of the Scheme     |To help the orphan girls    |
|    |                             |financially for their       |
|    |                             |marriage                    |
|2.  |Assistance provided and      |Rs.25,000/- along with 4    |
|    |Educational Qualification    |gms. gold coin (for those   |
|    |                             |who have studies up to 10th |
|    |                             |std., Vth Std, for Scheduled|
|    |                             |Tribes)                     |
|    |                             |Rs. 50,000/- along with 4   |
|    |                             |gms. gold coin (for Graduate|
|    |                             |and diploma holders)        |
|3.  |To whom the benefit is due   |Orphan girls                |
|4.  |When the benefit is due      |Before marriage             |
|5.  |Eligibility Criteria         |18 years                    |
|    |a)  Age Limit                |                            |
|    |b)  Income Limit             |Not exceeding Rs.24,000/-   |
|    |                             |per annum                   |


(E)  Dr. Muthulakshmi Reddy Ninaivu Inter-Caste Marriage Assistance Scheme


|1.  |Objectives of the Scheme     |To abolish caste and        |
|    |                             |community feelings based on |
|    |                             |birth and wipe out the evils|
|    |                             |of untouchabiity by         |
|    |                             |encouraging inter-caste     |
|    |                             |marriage                    |
|2.  |Assistance provided and      |Rs.25,000/- (Rs.15,000/-    |
|    |Educational Qualification    |DD/Cheque, Rs.10,000/- NSC  |
|    |                             |Certificate) along with  4  |
|    |                             |gms. gold coin (for those   |
|    |                             |who have studies up to 10th |
|    |                             |std., Vth Std, for Scheduled|
|    |                             |Tribes)                     |
|    |                             |Rs. 50,000/- (Rs.30,000/-   |
|    |                             |DD/cheque, Rs.20,000/- NSC  |
|    |                             |Certificate) along with 4   |
|    |                             |gms. gold coin (for Graduate|
|    |                             |and diploma holders)        |
|3.  |To whom the benefit is due   |Inter-caste married couple  |
|4.  |When the benefit is due      |Considering the special     |
|    |                             |constraints in such         |
|    |                             |marriages the facility will |
|    |                             |be extended up to two years.|
|5.  |Eligibility Criteria         |Minimum 18 years            |
|    |a)  Age Limit                |                            |
|    |b)  Income Limit             |No Income limit             |

II.  Distribution of Milch Animal and Goats
     i) It is highlighted by the State that with the growing population and
        shrinking land resources, the nutritional requirement of the  State
        cannot be met by  increasing  the  agricultural  production  alone.
        Moreover vagaries of monsoon, availability of water have  added  to
        the  pressure  on  increasing  the  agricultural  production.    To
        compensate this, it is necessary to improve the animal production.


(ii)  As per the Indian Council for Agriculture Research (ICAR)  norms,  the
      per capita requirement of milk and meat per individual per day is  260
      gms per day and 15gms. per day  respectively.   At  present,  the  per
      capita availability of milk and  meat  in  Tamil  Nadu  is  below  the
      recommended requirement.  Hence,  it  is  the  need  of  the  hour  to
      increase the milk and meat production in  the  State  to  the  State’s
      human population requirements.  Moreover, still a large population  in
      the State live below the poverty line.

(iii) Hence, it has been proposed to  improve  the  standard  of  living  by
      providing the needy poor with a Milch  cow  (to  60000  families)  and
      sheep/goats to about poorest of the  poor  (7  lakh  families)  spread
      across the State.  The main aim  of  the  above  Schemes  will  be  to
      improve the standard of living of the poorest of the poor.

(iv)  Under the Scheme of free distribution  of  Milch  Cows,  it  has  been
      envisaged to distribute Milch Cows to the poor people selected by  the
      Grama Sabha based on norms in such  villages/districts  which  do  not
      have adequate availability of milk.  Likewise, the poorest of the poor
      living in the rural areas will be  identified  democratically  by  the
      Grama Sabha and will be given 4 sheep/goats in order to sustain  their
      livelihood by rearing these sheep/goats.


A.  The scheme for distribution of 60,000 lactating cows  free  of  cost  in
rural village panchayats

(i)   The Government of Tamil Nadu  have  planned  to  launch  a  Scheme  to
      distribute 60,000 free Milch Cows to the  poor  beneficiaries  in  the
      rural areas in the next 5 years in order to give  boost  to  the  milk
      productivity of the State.  This scheme will  be  called  “Scheme  for
      free distribution of Milch Cows”.

2.  Selection of Villages for the Scheme
(i)   The Commissioner of Animal Husbandry and Veterinary  Services  (CA&VS)
      will select the Village Panchayats  to  be  taken  for  implementation
      during each of the 5 years in such a way that in a year, approximately
      12,000 beneficiaries are distributed  free  Milch  Cows  in  order  to
      complete the distribution of 60,000 Milch Cows in 5 years.

(ii)  The free Milch Cows will be distributed to the poor  beneficiaries  on
      a priority basis in such Districts that  have  lesser  number  of  Co-
      operative Societies than the total number  of  revenue  villages.   In
      such Districts, the distribution will be undertaken in  those  Village
      Panchayats where there are no Primary Milk  Cooperative  Societies  at
      present.  Consequent upon the distribution of the cows, action will be
      taken to form Primary Cooperative Societies of  the  beneficiaries  in
      these villages and render  the  beneficiaries  necessary  hand-holding
      assistance by the  Dairy  Development  Department.   The  Co-operative
      network has the following advantages for the beneficiaries:
      (a)   Availability of immediate opportunity of sale  of  milk  through
           the Milk Cooperative Society at good prices.
      (b)   Availability of Breeding services as well as Veterinary care  at
           the door steps through the Society as well as Milk Union.
      (c)   Opportunity to tap the benefits of various Central/State  funded
           Schemes meant for the co-operative sector.

(iii) Out of the villages to be selected  within  the  Districts  concerned,
      the smaller village Panchayats will be prioritized by the Commissioner
      of Animal Husbandary & Veterinary Services for the  implementation  of
      the Scheme since it will be easier to form the Primary Milk  Societies
      of smaller and cohesive units.  Further, the Village Panchayats to  be
      taken up  each  year  will  be  grouped  in  appropriate  geographical
      Clusters as to facilitate the economical collection of milk.

3.  Breed of Milch Cows to be procured
(i)   The breeding policy of the State envisages rearing of the  Cross  Bred
      Jersey Cows in the plains and Cross Bred Holstein-Friesian cows in the
      hilly areas of the State and the Cross Bred Cows yield, on an average,
      2.5 times the milk yield of indigenous cows.  It is,  hence,  proposed
      to supply Cross bred cows as per the Breeding  Policy  of  the  State.
      Further, in most of the cases,  farmers  prefer  rearing  of  cows  as
      compared to buffaloes.  Hence, it is proposed to distribute only  cows
      in this Scheme.  Amongst the Cross Bred cows too, it  is  proposed  to
      supply lactating cows that are in their first/second lactation  so  as
      to ensure a continuous production for next five lactations.   The  age
      of the animal should not be more than 5 years.

4.  Identification of Beneficiaries
(i)   The free Milch Cows will be distributed at the rate  of  one  Cow  per
      eligible household.  In order  to  empower  the  women,  it  has  been
      decided  that  the  actual  beneficiary  will  be  the  Woman  of  the
      household.  In case there are any transgender residing in the  Village
      Panchayat, who are otherwise eligible as per the criteria given below,
      they will also be considered to be eligible for the Scheme.
(ii)   Criteria  for  eligibility   The  beneficiaries  should  satisfy  the
      following criteria:
    • Women Headed households are to be given priority, (Widows,  Destitutes
      and the Disabled women to be given priority within this group).
    • Are below 60 years of age.
    • Do not own land over 1 acre in their own name or family members’  name
      (However, owning  some  land  is  preferable,  since  it  will  enable
      production of green fodder in own land).
    • Do not own any cows/buffaloes at present.
    •   Are   not   employees   of   Central/State   Government    or    any
      Organisation/cooperative or member of any Local Body (nor should their
      spouse      or       father/mother/parents-in-law/son/daughter/son-in-
      law/daughter-in-law be so).
    • Have not benefited from the free Goats/Sheep Scheme of the Government.
    • Should be permanent resident of the Village Panchayat.
    •  At  least  30%  beneficiaries  from  the  Village  Panchayat   should
      necessarily belong to SC/ST (SC 29% and ST 1%) Communities.


   (iii)          In order to form a viable and  successful  procurement  of
      milk by the Primary Milk Cooperative Societies, it is preferable  that
      at least 50 members within a village Panchayat should pour the milk to
      the  Milk  Cooperative   Society.    Hence,   ordinarily   around   50
      beneficiaries should be provided with cows in  each  of  the  selected
      Village Panchayats.


      (iv) In the District, the District Collector will be overall in-charge
      of the process of identification of beneficiaries.  The Regional Joint
      director (Animal Husbandry) (RJAD), Project Officer (Mahalir  Thittam)
      and Assistant Director (Panchayats) will assist him  in  this  regard.
      The District Collector will form a village Level Committee  consisting
      of (i) Village Panchayat President,  (ii)  Vice-President,  (iii)  the
      senior most Ward member (by age) representing  SC/ST  Community,  (iv)
      the Panchayat Level Federation (PLF) Coordinator, (v)  an  active  SHG
      representative (vi) the Veterinary Assistant Surgeon (VAS) of the area
      and (vii) the Deputy, Block Development Officer (ADW) to identify  and
      shortlist the list of beneficiaries per  the   norms  specified.   The
      District Collector  should  also  ensure  that  necessary  support  is
      rendered  to  the  Committee  by  the  Village   Panchayat   Assistant
      concerned.  The purpose of adding the Veterinary Assistant Surgeon and
      Deputy Block Development Officer is to ensure that  the  short  listed
      beneficiaries are conforming to the prescribed norms.


      (v)   After constituting the Village Level Committee for the  selected
      Village Panchayats concerned, the District Collector should arrange to
      convene a meeting of all the members concerned and  in  that  meeting,
      the details of the Scheme and the eligibility  conditions  are  to  be
      explained in detail.  Since, the  number  of  Village  Panchayats  per
      District will be ordinarily only about 10 per District per  year,  the
      District Collector should himself convene this meeting and convey  the
      details.


      (vi)  The District Collector should, thereafter, fix a Special Meeting
      of the Grama Sabha in the Village Panchayat concerned  to  inform  the
      details of the Scheme to  the  villagers.   The  Veterinary  Assistant
      Surgeon and Deputy Block Development Officer (ADW)  will  explain  the
      salient features of the Scheme and  the  eligibility  details  of  the
      beneficiaries in the meeting.  Applications for the  free  Milch  Cows
      will be sought for  in  this  Special  Gram  Sabha  Meeting  from  the
      interested beneficiaries.


      (vii) A period of one week will also be given for further  receipt  of
      Applications.  The Applications can be given to  any  of  the  village
      Level  Committee  members  or  directly  to  the  Village   Panchayat.
      Thereafter,  the  Veterinary  Assistant  Surgeon  and   Deputy   Block
      Development Officer (ADW) will arrange a meeting of the village  level
      Committee in the office of the Village  Panchayat  to  scrutinize  and
      list out the names of all the eligible beneficiaries for the Scheme.


      (viii)      The list prepared should  also  be  got  verified  by  the
      Veterinary Assistant Surgeon  and  Deputy  Block  Development  Officer
      (ADW) with the Village Administrative officer concerned,  with  regard
      to  the  land  ownership  details  and  the  community  details.   (No
      certificate is however to be insisted upon and  the  scrutiny  of  the
      Village Level committee  and  subsequently  the  Gram  Sabha  will  be
      considered to be final).  Only after ensuring the eligibility  of  the
      proposed beneficiaries, the list will be approved by the village Level
      Committee.


(ix)  The finalized  list  should  be  placed  before  the  Gram  Sabha  for
      approval.  The  Gram  Sabha  should  again  ensure  that  30%  of  the
      beneficiaries belong to SC/ST communities.

(x)   The District Collector should also  arrange  to  send  the  Veterinary
      Assistant Surgeon/Deputy Block Development Officer or another official
      of the rank of Deputy Block Development Officer (in  case  the  Deputy
      Block Development Officer is unable to attend) to participate  in  the
      Gram Sabha meeting and facilitate the discussion and  finalization  of
      the beneficiaries list.

(xi)  The list finalized by Gram Sabha will  be  displayed  in  the  Village
      Panchayat, Notice Board and other  prominent  places  in  the  Village
      Panchayat.

B.  Scheme for free distribution of goats/sheep to the poorest of the poor

      The Government of Tamil Nadu have proposed to  launch  a  “Scheme  for
      free distribution of Goats/Sheep” for the poorest of poor in the rural
      areas in order to enhance their standard of living.

2.  Implementation of the Scheme
(i)   The Goats/Sheep can  be  procured  within  the  State  and  also  from
      outside the State.  However, the procurement of Goats/Sheep in  larger
      numbers from the other States is not preferable since this category of
      animals (also called ‘small ruminants’ in veterinary terminology)  are
      fragile or prone  to  diseases  when  transported  enmasse  from  long
      distances and different climatic zones.  Hence, unlike the Scheme  for
      procurement of free Milch Cows wherein cows only from other States are
      proposed to be procured, it has been decided  to  procure  Goats/Sheep
      predominantly from the local  market  shandies  available  within  the
      State in the proximity of the beneficiaries.  If good quality  animals
      are brought and supplied by the breeders in the  village  itself,  the
      supply of Goats/Sheep through such breeders will be permitted.

(ii)  It is presumed that about 6-7 lakh Goats/Sheep can  be  procured  from
      the shandies within the State or from the neighbouring State  shandies
      without causing shortage  of  availability  of  Goats/Sheep  for  meat
      purpose and without causing impact on the price of Goats/Sheep in  the
      area.

(iii) In view of the availability of about 6-7 lakh Goats/Sheep in  a  year,
      the number of families to be assisted in each year will  be  1.5  lakh
      and in the current  year,  approximately  one  lakh  families  can  be
      assisted since the first quarter of the year  is  already  over.   The
      Gram Sabha will be utilized  to  identify  the  poorest  of  the  poor
      beneficiaries within each village.

3.  Eligibility Norms

      The beneficiaries will be the poorest of the poor families  living  in
      Village Panchayats (rural areas) who are  identified  by  the  village
      Level Committee as per the norms and whose name  is  approved  by  the
      Gram Sabha as the poorest of the poor in the village.

      The free Goats/Sheep will be distributed at the rate of 4  Goats/Sheep
      per household.  In order to empower the women,  it  has  been  decided
      that the actual beneficiary will be the Woman of  the  household.   In
      case there are any transgender residing in the Village Panchayat,  who
      are otherwise eligible as per the criteria given below, they will also
      be considered to be eligible for the Scheme.


The  beneficiaries  under  this  Scheme   should   satisfy   the   following
eligibility criteria

    • Must be the landless Agricultural labourers.
    • Should be a permanent resident of the Village Panchayat.
    • The beneficiary household should have at least one member between the
      age of 18 and 60 to effectively rear the Goats/Sheep.
    • Should not own any Cow/Goat/Sheep at present.
    • Should  not  be  an  employee  of  Central/State  Government  or  any
      Organisation/Cooperative or member of  any  local  body  (nor  should
      their  spouse  or   father/mother/parents-in-law/son/daughter/son-in-
      law/daughter-in-law be so).
    • Should not have benefited  from  the  free  Milch  Cows  Distribution
      Scheme of the Government.

2)     Atleast  30%  beneficiaries  from  the   Village   Panchayat   should
necessarily belong to SC/ST (SC 29% and ST 1%) community.

     i) The target number  of  beneficiaries  for  each  District  will  be
        decided by the Commissioner  of  Animal  Husbandry  and  Veterinary
        Services (CAH&VS) based on the strength of the rural population  of
        the District.  The Village Panchayat as well as  the  Block  target
        within the District will also be based on the  proportionate  rural
        population.
    ii) Within each District, the Village Panchayats will  be  selected  in
        such a manner that approximately  one-fifth  of  the  beneficiaries
        will be covered in each Block in a year and the beneficiaries of  a
        particular Village Panchyat will be fully covered within  the  year
        itself.   The  Commissioner  of  Animal  Husbandry  and  Veterinary
        Services will work out the detailed Action Plan in this regard  and
        convey to the District Collectors for implementation.  In  case  of
        difficulties in implementation of the Scheme in some of the Village
        Panchayats having  urbanized  characters,  the  District  Collector
        will, in consultation with the Commissioner of Animal Husbandry and
        Veterinary  Services,  re-allocate  the  surplus  target  to  other
        deserving Village Panchayats.
   iii) In the District, the District Collector will  be  the  overall  in-
        charge of the process  of  identification  of  beneficiaries.   The
        Regional Joint Director (Animal Husbandry) (RJAD), Project  Officer
        (Mahalir Thittam) and Assistant Director (Panchayats)  will  assist
        him in this regard.  The District Collector  will  form  a  Village
        Level Committee consisting of (i) Village Panchayat President, (ii)
        Vice-President,  (iii)  the  senior  most  Ward  member  (by   age)
        representing SC/ST Community, (iv) the Panchayat  Level  Federation
        (PLF)  coordinator  (v)  an  active  SHG  representative  (vi)  the
        Veterinary Assistant Surgeon (VAS) of the area and (vi) the  Deputy
        Block Development Officer (ADW) to identify and shortlist the  list
        of  beneficiaries  as  per  the  norms  specified.   The   District
        Collector should also ensure that necessary support is rendered  to
        the Committee by the Village Panchayat  Assistant  concerned.   The
        purpose  of adding the VAS and Deputy BDO(ADW) is  to  ensure  that
        the shortlisted beneficiaries  are  conforming  to  the  prescribed
        norms.
    iv) After constituting the Village Level  Committee  for  the  selected
        Village Panchayats concerned, the District Collector should arrange
        to convene a meeting of all  the  members  concerned  and  in  that
        meeting, the details of the Scheme and the  eligibility  conditions
        are to be explained  in  detail.   The  District  Collector  should
        himself convene this meeting in one or more sessions  in  order  to
        convey the details and the seriousness of the selection process.
     v) The District Collector should, thereafter, fix a Special Meeting of
        the Gram Sabha in the Village Panchayat  concerned  to  inform  the
        details of the Scheme to the villagers.  The  Veterinary  Assistant
        Surgeon and Deputy Block Development Officer (ADW) will explain the
        salient features of the Scheme and the eligibility details  of  the
        beneficiaries  in  the  meeting.    Applications   for   the   free
        Goats/Sheep will be sought for in this Special Gram  Sabha  Meeting
        from the interested beneficiaries.
    vi) A period of one week will also be  given  for  further  receipt  of
        applications.  The applications can be given to any of the  Village
        Level Committee  members  or  directly  to  the  Village  Panchyat.
        Thereafter, the  Veterinary  Assistant  Surgeon  and  Deputy  Block
        Development Officer (ADW) will arrange a  meeting  of  the  Village
        Level  Committee  in  the  office  of  the  Village  Panchayat   to
        scrutinize and list out the names of all the eligible beneficiaries
        for the Scheme.
   vii) The list prepared should also be got  verified  by  the  Veterinary
        Assistant Surgeon and Deputy Block Development Officer  (ADW)  with
        the  village  Administrative  Officer  concerned,  to  confirm  the
        ‘landless’ status of the proposed beneficiaries and  the  community
        details.  (No certificate is however to be insisted  upon  and  the
        scrutiny of the Village Level Committee and subsequently  the  Gram
        Sabha will be considered to be final).   Only  after  ensuring  the
        eligibility  of  the  proposed  beneficiaries,  the  list  will  be
        approved by the Village Level Committee.
  viii) The finalized list should be  placed  before  the  Gram  Sabha  for
        approval.  The Gram Sabha should  again  ensure  that  30%  of  the
        beneficiaries belong to SC/ST (SC 29% and ST 1%) communities.
    ix) The District Collector should also arrange to send  the  Veterinary
        Assistant Surgeon/Deputy Block Development Officer (ADW) or another
        official of the rank of Deputy Block Development Officer  (in  case
        the Deputy Block Development Officer (ADW) is unable to attend)  to
        participate in the Gram Sabha meeting and facilitate the discussion
        and finalization of the beneficiaries list.

III.  Solar Powered Green House Scheme

1.    The Government  proposed  to  construct  “Solar  Powered  Green  House
      Scheme” for the benefit of the poor in the rural areas  and  measuring
      about 300 square feet with unit cost of Rs.1.80 lakhs by  meeting  the
      entire cost by Government.  The scheme aims at providing Solar Powered
      Green House for the poor living below poverty line  in  rural   areas.
      Accordingly, it is proposed to construct 60,000  Solar  Powered  Green
      House of 300 sq. ft. each year for the next five years from  2011-2012
      totalling 3 lakh house.

2.    Eligibility Criteria :
1.    The beneficiary under Solar Powered Green House Scheme  should  reside
      within the Village Panchayat and find a place  in  the  below  poverty
      line list.
2.    He/she should own a site of 300 sq. ft. with clear title and patta.
3.    Should not own any pacca concrete  house  and  not  benefited  by  any
      other housing scheme.
4.    Rs.1.50  lakhs  will  be  earmarked  for  construction  of  house  and
      Rs.30,000/- for installing solar Powered Home Lighting System.
5.    The scheme will be implemented by the  District  Collector  so  as  to
      ensure that the construction of houses are completed in time.

IV. Laptop Computers to students

      The State of Tamil Nadu have emerged as a  favoured  destination  both
      for the domestic and multinational IT companies.  This has opened  new
      vistas of job opportunities for youth  in  Tamil  Nadu.   Further  the
      students from lower rungs of the socio-economic pyramid also  need  to
      be equipped to participate in the emerging market.  To  provide  level
      playing field by bridging  the  digital  divide,  develop  skills  and
      improve human resources in consonance with the millennium  development
      goals, the Government of Tamil Nadu have  decided  to  provide  Laptop
      computers at free of cost to all students studying in  Government  and
      Government aided Higher Secondary Schools, Arts  &  Science  colleges,
      Engineering Colleges and polytechnic colleges.

      Accordingly the Government have issued order in G.O.(Ms) No.1, Special
      Programme Implementation Department dated 03.06.2011 for  distribution
      of Laptop Computer at free of cost.

      Under this scheme, the students studying in Government and  Government
      aided schools, Arts and Science  Colleges,  Engineering  Colleges  and
      Polytechnics will be eligible.  These  students  will  be  covered  as
      follows:







|Year        |Schools     |Arts/Science |Engineering  |Polytechnics |
|            |            |College      |Colleges     |             |
|2011-12     |Plus Two    |1st & 3rd    |2nd & 4th    |1st & 3rd    |
|            |(12th std.) |years        |year students|year students|
|            |            |students     |             |             |
|2012-13     |Plus Two    |3rd year     |2nd & 4th    |1st & 3rd    |
|            |(12th std.) |students     |Year students|year students|
|2013-14     |Plus Two    |  -          |-            |1st year     |
|            |(12th std.) |             |             |student      |

      During the year 2011-12, laptop computers will be distributed to  9.12
      lakh students studying in 12th standard, 1st and 3rd year of Arts  and
      Science Colleges, 2nd and 4th year of Engineering Colleges and 1st and
      3rd year of Polytechnic colleges.  The concerned Heads of Institutions
      will ensure that the  dropouts/discontinued/transferred  students  are
      not included in the list of eligible students.


V.  Free Rice Scheme
Note on the Scheme of Distribution  of  free  rice  under  Universal  Public
Distribution System in Tamil Nadu

      In Tamil Nadu Universal Public Distribution System is  being  followed
      and there is no differentiation as APL/BPL categories based on  income
      criteria for supply of essential  commodities  to  family  cardholders
      under Public Distribution System.  Hence, there is no  differentiation
      like BPL/APL family cards in this State.  Instead  family  cards  have
      been issued on the basis of option exercised by the card holders under
      self-selection process to receive either rice with all commodities  or
      to receive additional sugar in lieu of  rice  with  other  commodities
      after verifying the genuiness of the residence in this State.

Features of Universal Public Distribution System in Tamil Nadu

     1) Universal Public Distribution System is the heart and soul of State
        Food Policy.  It is built on the principles of non-exclusion,  easy
        access  to  Public   Distribution   System   shops   and   adequate
        availability of food gain at an affordable price.
     2) Though Government of India advocates Targeted  Public  Distribution
        system(TPDS), Government of Tamil Nadu is not in  favour  of  rigid
        targeting, as it may lead to exclusion of large number  of  genuine
        Below Poverty Line (BPL) families and vulnerable Above Poverty Line
        (APL)  families  due  to  enumeration  errors  and  improper  bench
        marking.
     3) Poverty is  a  dynamic  and  relative  concept  and  hence,  it  is
        difficult to design acceptable criteria and methodology to  measure
        poverty.  Thus any method used  for  identifying  BPL  families  is
        bound to result in some amount of exclusion of deserving  families.
        Further, due to unforeseen natural calamities like droughts, floods
        and disaster etc., a large number of vulnerable APL families may be
        forced into poverty trap again.
     4) Rigid government system will not be able to respond quickly to such
        situation.  Thus targeted public distribution system approach  will
        always have some families outside the Public Distribution system at
        any point of time in defeating the objective of total food security
        and elimination of hunger.
     5) On the other hand Universal Public Distribution System is based  on
        principle of self selection.  Only those who need  subsidized  food
        articles will go to the Public Distribution System  shops  and  not
        the entire population.
     6) Based  on  these  principles  and  out  of  years  of  experiences,
        Government  of  Tamil  Nadu  is  convinced  that  Universal  Public
        Distribution System assures better food security to the people  and
        therefore has decided to continue with it.

Process for issue of family cards
      On application for issue  of  family  cards  in  the  form  prescribed
      (available in the website of the  Department  of  Civil  Supplies  and
      Consumer Protection and can be downloaded  and  used  –  No  cost  for
      application), the Civil Supplies authorities verify the  genuiness  of
      the application and  recommend  for  issue  for  family  card  or  for
      rejection of cards as the case may be.


      No  income  details  are  collected  from  the  individual  and   this
      information is not entered in the family card also.  As income, except
      in the case of persons employed in the organized sector, is a  dynamic
      variable susceptible to undergo charges in sync  with  any  unexpected
      events in the employment market, these details are not being collected
      for the purpose of the existing Universal Public Distribution System.


      On the other hand, option is given to the applicant to choose  whether
      he would like to draw rice or not.  If he selects not to draw rice, he
      is given the benefit of drawing 3kgs. extra sugar in lieu of  rice  in
      addition to the normal entitlement of  ½  kg.  per  person  per  month
      subject to the maximum of 2kg per month per card.


VI.  Free Distribution of Electric Fans, Mixies & Grinders to Women

      This scheme is introduced as a welfare measure for women  and  intends
      universal  coverage  of  women  beneficiaries  belonging  to  families
      holding family cards which are eligible for  drawing  rice.   To  make
      women more effective participants in the economy, it is imperative  to
      relieve them from the domestic drudgery.   Therefore,  the  Government
      have decided to distribute  a  package  of  electric  Fan,  Mixie  and
      Grinder to all the women from the families holding family cards  which
      are eligible to draw rice.  This scheme is  expected  to  improve  the
      standard of living of  the  poor  women  apart  from  providing  equal
      opportunities.

      In pursuance to above, the Government have issued Orders in G.O. Ms. 2
      Special Programme Implementation Department, Dated 03.06.2011 for free
      distribution of 25 lakh packages of electric fans, mixies and  grinder
      during 2011-12.  In total about 1.83 crore women beneficiaries will be
      covered in a phased manner.

2. Eligibility Criteria
      All households having a family card which is eligible for drawing rice
      are eligible for electric fans, mixies and grinders, at free of  cost,
      under this Scheme.  The benefits will be distributed only to  a  woman
      member of these households.


      In case, a household having family card which is eligible for  drawing
      rice, does not have any woman member it will be given to the  head  of
      the family.


      The family cards as on 30.06.2011 will be considered for  distribution
      of the items during the current year (2011-12).


      The benefits will be distributed to an eligible family only once.

      While distributing the benefits, priority should  be  given  to  rural
      areas within the Assembly Constituency followed  by  Town  Panchayats,
      then Municipalities and Municipal Corporations, if any.”

61) The concepts of livelihood and standard of living are  bound  to  change
in their content from time to  time.  It  is  factual  that  what  was  once
considered to be a luxury has become a necessity in the present day.  It  is
well settled that the concept of livelihood is no longer  confined  to  bare
physical survival in terms of  food,  clothing  and  shelter  but  also  now
necessarily includes  basic  medicines,  preliminary  education,  transport,
etc. Hence, the State distrusting largesse in the form  of  distribution  of
colour TVs, laptops, etc. to eligible  and  deserving  persons  is  directly
related to the directive principles of the State policy.
62)   As a result, we are not inclined to agree with  the  argument  of  the
appellant that giving of colour TVs, laptops,  mixer-grinders  etc.  by  the
Government after adhering to due  process  is  not  an  expense  for  public
purpose. Judicial  interference  is  permissible  when  the  action  of  the
government is unconstitutional and not when such action is not wise or  that
the extent of expenditure is not for the good of the State. We  are  of  the
view that all such questions must be debated and decided in the  legislature
and not in court.
63)   More so, the functioning  of  the  Government  is  controlled  by  the
Constitution, the laws of the land, the legislature and the Comptroller  and
Auditor General of India.  As  per  Article  73  of  the  Constitution,  the
executive power of the Union of India is co-extensive with  its  legislative
power.  Similarly, the executive power of the  State  is  co-extensive  with
its legislative power   (Article 162).  In Bhim Singh  (supra),  this  Court
has held that  the  Government  can  frame  a  scheme  in  exercise  of  its
executive powers but if such a scheme entails any expenditure,  then  it  is
required to be backed by law.  Article 266 of  the  Constitution  lays  down
that all  monies  received  by  the  Central  Government  or  by  the  State
Government  by  way  of  taxes  or  otherwise  must  be  credited   to   the
Consolidated Fund of India.  Article 267 also constitutes  Contingency  Fund
of India.  If any money (except which is charged on the  Consolidated  Fund)
is to be withdrawn for any governmental purpose, then there  has  to  be  an
Appropriation Act  under  Article  266(3)  read  with  Article  114  of  the
Constitution.  Every department of the Government  presents  its  demand  to
the legislature concerned  and  the  legislature  votes  on  the  same,  and
thereafter, the Appropriation Act is passed which authorizes the  Government
to withdraw the  money  from  the  Consolidated  Fund.   There  are  similar
provisions relating to the State.  The Contingency Fund can  be  established
only by enacting a law in that behalf and not by  an  executive  fiat.   The
law creating the Contingency Fund authorizes  the  purposes  for  which  the
amount in it can be spent.  This is how the money  is  being  spent  by  the
Government on its schemes under the control of the Legislature.
64)   In Bhim Singh (supra), Article 282 of the Constitution in the  context
of Government expenditure on  various  projects  was  considered.   In  that
case, the Government in  question  had  framed  the  scheme  empowering  the
Members of Parliament to recommend works and projects  in  their  respective
constituencies.  The said Scheme was challenged on the ground that the  same
has  been  formulated  without  enacting  any  law  in  that  behalf.   This
challenge was negatived by this Court principally on  the  ground  that  any
expenditure which the Government incurs on the said Scheme is authorized  by
the Appropriation Act and the Appropriation Act is a law as contemplated  by
Article 282.  This Court also negatived the challenge  on  the  ground  that
the same is not for public purpose.
65)   In addition to the legislative control by way of  Appropriation  Acts,
the rules framed by the Parliament  under  Article  118  and  by  the  State
Legislatures under Article 208 of the Constitution of India, also  create  a
mechanism to keep a check on the expenditure incurred by the Government.
66)   As far as State of  Tamil  Nadu  is  concerned,  the  Legislature  has
framed rules under Article 208 of  the  Constitution  and  these  rules  are
known as The Tamil Nadu Legislative Assembly Rules.   Under  Chapter  XX  of
the said Rules, a Public Accounts Committee  is  set  up  and  usually  such
Public Accounts Committee is headed by a Member of the Opposite Party.   The
Public Accounts Committee scrutinizes the Government  accounts  and  submits
its report to the Legislature for its consideration.   So,  apart  from  the
Appropriation Act, there is  also  effective  control  over  the  Government
accounts and expenses through the Public Accounts Committee.
67)   In addition to the Legislative control, the founding  fathers  of  the
Constitution have also  thought  it  fit  to  keep  a  check  on  Government
accounts and expenses  through  an  agency  outside  the  Legislature  also.
Article 148 has created a constitutional functionary  in  the  form  of  the
Comptroller  and  Auditor  General  of  India  (CAG).   CAG   examines   the
propriety,  legality  and  validity  of  all  expenses   incurred   by   the
Government.   The  office  of  CAG  exercises  effective  control  over  the
Government accounts.
68)   If we analyze the abovementioned articles and the rules of  procedure,
it is established that there are various  checks  and  balances  within  the
mandate of the Constitution before a scheme can be implemented. As  long  as
the schemes come within the realm of  public  purpose  and  monies  for  the
schemes is withdrawn with appropriate  Appropriation  bill,  the  court  has
limited power to interfere in such schemes.
69)   Further, the appellant  contended  by  referring  to  various  foreign
cases to highlight the principle that public money cannot be used to  create
private assets. In our opinion, there is no merit in this  contention  also.
The purpose of the schemes is to enforce the directive principles  of  state
policy. In what way the state chooses to implement the directive  principles
of state policy is a policy decision of the  State  and  this  Court  cannot
interfere with such decisions. Ordinarily, this Court cannot interfere  with
policy decisions of the government unless they are clearly in  violation  of
some statutory or Constitutional provision or  is  shockingly  arbitrary  in
nature. In Ekta Shakti Foundation vs. Government of NCT of Delhi  (2006)  10
SCC 337, it was held:-
      10 “While exercising the power of judicial  review  of  administrative
   action, the Court is not the appellate authority  and  the  Constitution
   does not permit the Court to direct or advise the executive in matter of
   policy or to sermonize any matter  which  under  the  Constitution  lies
   within the sphere of the Legislature or the  executive,  provided  these
   authorities do not transgress their constitutional limits  or  statutory
   power. The scope of judicial enquiry is confined to the question whether
   the decision taken by the Government is against any statutory provisions
   or is violative of the fundamental rights of the citizens or is  opposed
   to the provisions of the Constitution. Thus, the position is  that  even
   if the decision taken by the Government does not appear to be  agreeable
   to the Court it cannot interfere. The correctness of the  reasons  which
   prompted the Government in decision making, taking one course of  action
   instead of another is not a matter of concern in judicial review and the
   Court is not the appropriate forum for such investigation.

In the light of settled principle and observing that in the  given  case  no
such circumstances prevail as envisaged for judicial  enquiry;  we  are  not
persuaded to interfere with the policy decision.
70)   With regard to the contention that distribution of State  largesse  in
the form of colour TVs, laptops, mixer-grinders, etc., violates  Article  14
of Constitution as the unequals are treated equally. Before  we  venture  to
answer  this  question,  we  must  recall  that  these  measures  relate  to
implementation of Directive  Principles  of  State  Policy.  Therefore,  the
principle of not to treat unequals as equal has no applicability as  far  as
State largesse is concerned.  This principle applies only where the  law  or
the State action imposes some burden on  the  citizen  either  financial  or
otherwise. Besides, while implementing the directive principles, it  is  for
the Government concerned to take into account its  financial  resources  and
the need of the people.  There cannot be  a  straight  jacket  formula.   If
certain benefits are restricted to a particular class that can obviously  be
on account of the limited resources of  the  State.   All  welfare  measures
cannot at one go be made available to  all  the  citizens.   The  State  can
gradually extend the benefit and this principle has been recognized by  this
Court in several judgments.




Issue No. 3

Whether this Court has inherent power to issue guidelines by application  of
Vishaka principle?


71)   It is the stand of the appellant that there is legislative  vacuum  in
the given case. Hence, the judiciary  is  warranted  to  legislate  in  this
regard to fill  the  gap  by  application  of  Vishaka  principle.  However,
learned counsel for the respondent made a distinction  between  the  Vishaka
(supra) and the given case. While  highlighting  that  in  Vishaka  (supra),
there was no legislation to punish the act  of  sexual  harassment  at  work
place,  therefore,  the  judiciary  noting  the  legislative  vacuum  framed
temporary guidelines until the legislatures passed a bill  in  that  regard.
However, in the case at hand, there is a special  legislation,  namely,  the
Representation of People Act wherein Section 123 enumerates  exhaustively  a
series of acts as “corrupt practice”. Therefore,  this  is  not  a  case  of
legislative vacuum where the judiciary  can  apply  its  inherent  power  to
frame guidelines.


Issue No. 4:
Whether Comptroller and Auditor General of  India  has  a  duty  to  examine
expenditures even before they are deployed?

72)   As reiterated earlier, the Comptroller and Auditor  General  of  India
is  a  constitutional  functionary  appointed  under  Article  148  of   the
Constitution.  His main role is to audit the income and expenditure  of  the
Governments, Government bodies and state-run corporations.   The  extent  of
his duties is listed out in the Comptroller and Auditor  General’s  (Duties,
Powers etc.) Act, 1971.  The functioning of the Government is controlled  by
the Constitution, the laws of the land, the legislature and the  Comptroller
and Auditor General of India.  CAG  examines  the  propriety,  legality  and
validity of all expenses incurred by the  Government.   The  office  of  CAG
exercises effective control over the  government  accounts  and  expenditure
incurred on these schemes only after  implementation  of  the  same.   As  a
result, the duty of the CAG  will  arise  only  after  the  expenditure  has
incurred.


Issue No. 5
Whether the writ jurisdiction will lie against a political party?

73) Learned senior counsel for the respondent (State of Tamil  Nadu)  raised
the issue of jurisdiction stating  that  political  parties  are  not  State
within  the  meaning  of  Article  12  of  the  Constitution  of  India  and
therefore, no writ of any nature can be issued  against  them  either  under
Article 226 or Article  32  of  the  Constitution  of  India  or  any  other
provision of the Constitution or any other law. The  correct  forum  is  the
Election Tribunal and not writ jurisdiction.
74) Admittedly, the respondents never raised any objection relating  to  the
jurisdiction in the High Court or even in the pleadings before  this  Court.
It is only in the oral submissions that this issue has been raised.
75) In the  matters  relating  to  pecuniary  jurisdiction  and  territorial
jurisdiction, the objection as to  jurisdiction  has  to  be  taken  at  the
earliest possible opportunity. But, this case relates  to  the  jurisdiction
over the subject matter. This is totally distinct and stands on a  different
footing. As such, the question of subject matter jurisdiction can be  raised
even in the appeal stage. However, as this petition is fit for dismissal  de
hors the jurisdiction issue, the jurisdiction issue is left open.
76)   Summary:
(i) After examining and considering the parameters laid in  Section  123  of RP Act, 
we arrived at  a  conclusion  that  the  promises  in  the  election
manifesto cannot be read into Section 123 for declaring it to be  a  corrupt practice. 
Thus, promises in the election manifesto do not  constitute  as  a
corrupt practice under the prevailing law. 
A  reference  to  a  decision  of this Court will be timely.  
In  Prof.  Ramchandra  G.  Kapse  vs.  Haribansh
Ramakbal Singh (1996) 1 SCC 206 
this Court held that  
“..Ex  facie  contents of a manifesto, by itself, cannot be  a  corrupt  practice  committed  by  a candidate of that party.”
(ii) Further, it has been decided that the schemes challenged in  this  writ petition falls within the realm of fulfilling the  Directive  Principles  of State Policy thereby falling within the scope of public purpose.
(iii) The mandate of the Constitution provides various checks  and  balances before a Scheme can be implemented. Therefore, as long as the  schemes  come within  the  realm  of  public  purpose  and  monies   withdrawn   for   the implementation of schemes by passing suitable Appropriation Bill, the  court
has limited jurisdiction to interfere in such schemes.
(iv) We have also emphasized on  the  fact  that  judicial  interference  is permissible only when the action of the government  is  unconstitutional  or contrary to a statutory provision and not when such action is  not  wise  or
that the extent of expenditure is not for the good of the State.
(v)   It is also asserted that the schemes challenged  under  this  petition are in consonance with Article 14 of the Constitution.
(vi)   As there is no legislative vacuum in the case on hand, the scope  for application of Vishaka principle does not arise.
(vii) The duty of  the  CAG  will  arise  only  after  the  expenditure  has incurred.
(viii) Since this petition is fit  for  dismissal  dehors  the  jurisdiction issue, the issue of jurisdiction is left open.
Directions:
77) Although,  the  law  is  obvious  that  the  promises  in  the  election manifesto cannot be construed as ‘corrupt practice’ under Section 123 of  RP Act, 
the reality cannot be ruled out that distribution of  freebies  of  any kind, undoubtedly, influences all people. 
It shakes the  root  of  free  and fair elections to a large  degree.   
The  Election  Commission  through  its
counsel also conveyed the same feeling both in  the  affidavit  and  in  the
argument that the promise of such freebies at government cost  disturbs  the
level  playing  field  and  vitiates  the  electoral  process  and   thereby
expressed willingness to implement any directions or decision of this  Court
in this regard.
78) As observed in the earlier part of the judgment, this Court has  limited
power to issue directions to the legislature to legislate  on  a  particular
issue.
However, the Election Commission, in order to  ensure  level  playing
field between the contesting parties and candidates in  elections  and  also
in order to see that the  purity  of  the  election  process  does  not  get
vitiated, as in past been issuing  instructions  under  the  Model  Code  of
Conduct.
The fountainhead of the powers under which  the  commission  issues
these orders  is  Article  324  of  the  Constitution,  which  mandates  the
commission to hold free and fair elections.
It  is  equally  imperative  to
acknowledge that the Election Commission cannot issue  such  orders  if  the subject matter of the order  of  commission  is  covered  by  a  legislative measure.
79) Therefore, considering that there is no enactment that directly  governs the contents of the  election  manifesto,  
we  hereby  direct  the  Election
Commission to frame guidelines for the same in  consultation  with  all  the
recognized political parties as when it had acted while  framing  guidelines
for general conduct of the candidates, meetings, processions,  polling  day,
party in power etc. 
In the similar way, a separate head for  guidelines  for
election manifesto released by a political party can  also  be  included  in
the  Model  Code  of  Conduct  for  the  Guidance  of  Political  Parties  & Candidates.   
We are mindful of the fact that  generally  political  parties
release their election manifesto before the announcement of  election  date, in that scenario, strictly speaking, the Election Commission will  not  have the authority to regulate any act which is done before the  announcement  of the date.  

Nevertheless, an exception can be made  in  this  regard  as  the
purpose of election manifesto  is  directly  associated  with  the  election process.
80)   We hereby direct the Election Commission  to  take  up  this  task  as
early as possible owing to its utmost importance. We also  record  the  need
for a separate legislation to be passed by the legislature  in  this  regard
for governing the political parties in our democratic society.
81)   In the light  of  the  above  discussion,  taking  note  of  statutory
provisions of the RP Act,  which  controls  only  candidate  or  his  agent,
mandates provided under the directive principles,  various  guidelines  such
as income limit, preference to women, agricultural labourer etc as  detailed
in the counter affidavit by the State, we find no merit  in  the  appeal  as
well as in the transferred case.  With the above  observation  as  mentioned
in paragraph Nos. 77-80, the appeal and the transferred case are  dismissed.
   No order as to costs.



                            ...…………….………………………J.


                                 (P. SATHASIVAM)












                              .…....…………………………………J.


                              (RANJAN GOGOI)


NEW DELHI;
JULY 05, 2013.

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