CBIC issues SoP to check use of freebies to lure voters during elections

The CBIC has come out with detailed instructions for tax officers to implement the directions of the Election Commission with regard to the use of freebies, illicit cash, liquor and drugs to lure voters, and asked them to share information with other enforcement agencies.

The GST and Customs officials will also be required to monitor the distribution of coupon-based or free fuel or cash for alluring prospective voters under the new Standard Operating Procedure (SoP).

The officials would also monitor fuel consumption by candidates and parties and keep a tab on expenditure on food, hotels, parties, tent house etc.

The GST officers would keep an extensive check on restaurant/eateries, marriage hall/ farm houses/ slaughter house/ meat house in the poll-bound area, said a detailed SoP issued by the Central Board of Indirect Taxes and Customs (CBIC).

The GST and Customs officials would also set up "flying squads and static surveillance teams" for the effective conduct of road and transit checks of vehicles, and verification of warehouses to curb illegal and prohibited activities, according to the SoP released ahead of the assembly elections due in five states -- Rajasthan, Chhattisgarh, Madhya Pradesh, Telangana and Mizoram -- and Lok Sabha elections next year.

The CBIC asked the chief commissioners and Principal Director Generals of Customs and GST to closely monitor the steps taken by the field formations to implement the directions of the ECI, especially in the use of non-monetary inducements (sarees, shirts, caps, scarves, white goods, masks, kitchen items etc.) and cash to lure voters.

The tax officers would also have to apprehend smuggled/ illicit and other goods, identify warehouses used to stock goods for distribution to lure voters, cash movement etc. and also disseminate information to and from other enforcement agencies/ department.

The tax officers will be required to send a report on a daily basis to the Election Commission of India (ECI).

In order to ensure against unauthorised diversion of liquor, cigarettes etc., special watch/stock-taking should be kept/ carried out in the Customs Bonded Warehouses, the SoP said.

"All out efforts should be made to detect and seize illicit currency, liquor, gold, FICN, NDPS and other contraband," the CBIC said.

The Directorate General of Analytics and Risk Management (DG ARM) shall study the surge patterns of the specified freebies that might be associated with the candidate or political party to and within a state and analyse the place of storage of such goods.

Data analysis should be done on identified sensitive sectors as well as groups/ organisations/ individuals known to generate/ deal in unaccounted cash and share information with the Income Tax Department, wherever warranted.

The GST officers have been mandated to check e-way bills extensively at checkpoints during elections to ensure that the specified goods are not moving without a proper GST invoice or e-way bill for distribution in the poll-bound area to influence voters.

The Directorate of Revenue Intelligence (DRI) should increase its vigil along the international border/ airports and its information gathering mechanism to check the flow of foreign currency/ gold/ narcotics etc. that could potentially be used for malpractices during the elections.

The SoP for stepping up of Preventive Vigilance Mechanism by the CBIC field formations follows the concerns expressed by the ECI that smuggled goods/contrabands and other illicit articles may be used to lure the voters during the election process, which would need to be checked by the law enforcement agencies, including those of the CBIC.

AMRG & Associates Senior Partner Rajat Mohan said digital initiatives like e-way bills and e-invoicing, coupled with RFID (Radio-Frequency Identification) are a great tool in the hands of the CBIC.

"Collaboration with the ECI would be in the national interest to deter the influence of unscrupulous elements during elections," Mohan said.