The Election Commission (EC) with the help of the Income Tax department and banks would monitor high-value transactions in banks ahead of the 2019 Lok Sabha polls and some other Legislative Assemblies and bypolls in the coming months as part of attempts to curb illegal money flow during election process.
The EC has asked chief electoral officials of all States and Union Territories, Indian Banks Association and Director General of Income Tax department to keep tack and monitor on suspicious cash transactions made through bank accounts during election process.
It has directed district election officers to obtain information from the banks regarding suspicious cash transaction during polls.
Sources said that the Commission has chalked out a stringent plan with different enforcement agencies to ensure that there are no illegal cash transactions during campaigning.
"As directed by the Commission, information on suspected cash transaction for bribing the electors should be passed on to the flying squads for necessary action after due verification.
Information on cash deposits or withdrawals of more than 10 lakh is to be sent to the nodal officers of Income Tax department for necessary action under the Income Tax Act," the Commission said in a communiqué to Income Tax department, CEOs of all states and Union Territories.
The EC also met senior officials of the railways, customs and excise, transport departments and the police, and constituted a high-level monitoring panel. They will monitor pre- and post-election activity.
The Election Commission of India also directed that information on cash deposits or withdrawals of more than Rs 10 lakh is to be sent to the nodal officers of Income Tax department for necessary action under the Income Tax laws. At present, the I-T department seizes cash of unexplained transactions of Rs 10 lakh or more.
The department had last year released an advisory, limiting cash donation to a registered political party.
The government had in the Budget last year launched the "electoral bond" facility. Donors can buy these bonds from the State Bank of India and a few other banks. Even through the Representation of the People Act, 1951, exempted parties from declaring funding made through bonds, the I-T Act requires them to disclose the total income from this source.
The tax department is also keeping an eye on all donations to political parties. If a donation is above Rs 2,000 in cash, the donor might face scrutiny.
In 2014, as many as Rs 300 crore seized as dubious transaction across the country during polls.