The ongoing Bihar elections are all about the money. In the past, Bihar was frequently linked with the use of muscle power to win votes. But this election is different.

Data released by the Election Commission makes for interesting reading. During the 2010 Bihar assembly elections, the poll watchdog seized Rs 1.5 crore in unaccounted cash. This figure rose to Rs 4 crore during the Lok Sabha elections a year ago. Now, with two phases of the assembly polls completed and three more to go, the Election Commission has already recovered Rs 20 crore.

In addition, another Rs 19 crore of illegal money was seized last week. Following a sting operation by a television channel, the Commission tipped off the income tax authorities about a hawala racket.

Anything to win

This is a high stakes election. For the Bharatiya Janata Party-led National Democratc Alliance, it’s all about redemption after the poor show in the Delhi assembly election at the start of the year. At the other end of the spectrum, allies Nitish Kumar’s Janata Dal (United) and Lalu Prasad’s Rashtriya Janata Dal are fighting for their political survival.

So it comes as no surprise that the major players are using all means at their disposal to win votes. And this includes the free flow of cash and liquor. The BJP is flush with funds. Its clout at the Centre and control over several states makes it easy to raise money. The other parties do not have a cash flow problem either.

Past elections in Bihar saw dominant upper castes pressing members of lower castes to vote for a particular candidate, failing which they would be kept away from the polling booth. Booth capturing by upper castes was a routine affair. However, electronic voting machines and greater vigilance by the Election Commission helped curb this menace.

As for the use of big money, the election watchdog has also taken several steps to tackle the problem. It has tightened regulations for financing election campaigns and increased vigilance. For instance, during the current elections, vehicles used by flying squads have been fitted with Global Positioning Systems to enable election officers to monitor their movement.

But political parties always find a way out, devising innovative means to lure voters with cash and gifts. Based on past experiences, there is every chance that the cash seized during the Bihar elections is only a fraction of the amount acutally being spent on influencing voters.

Rising clout

“Currency notes come first in containers, then in truckloads, moving to wholesale/small retail firms, and finally to suitcases and into people’s pockets,” stated a Law Commission report submitted to the government earlier this year.

Former chief election commissioner SY Quraishi has also documented the use of money power in elections. In his book An Undocumented Wonder – The Making of the Great Indian Election, Quraishi mentions the “crores of rupees, bundles of saris and dhotis and hundreds of gas stoves” seized by returning officers in Tamil Nadu.

According to Quraishi, candidates and political parties disguise the use of illegal money by holding feasts and hosting birthday parties, where expensive gifts are distributed. Cash is also distributed with the daily newspaper or through local moneylenders. There’s also the practice of recharging voters’ mobiles phones and organising fake aartis.

Tamil Nadu is notorious for its “Thirumangalam formula”. During the Thirumangalam by-election in Madurai district in 2009, DMK party workers distributed Rs 5,000 to each voter. In neighbouring Karnataka, flying squads chanced upon money being transported in washing machines.

Awaiting reforms

Despite the magnitude of the problem, there has been no committed effort by the Centre to tackle the problem. Successive governments have promised electoral reforms including public funding of elections. Numerous reports have been prepared in this regard but eventually ended up in the government’s archives.

The Administrative Reforms Commission recommended partial state funding while the latest Law Commission report has ruled out complete state funding of elections.

According to the report, “Currently, a system of complete state funding of elections or of matching grants, wherein the government matches the private funding raised by political parties, is not feasible given the economic conditions and developmental problems of the country.” However, the report recommends persisting with the existing system, where instead of money, indirect in-kind subsidies are provided via a National Election Fund.

Until there's some clarity on the issue and concerted efforts to deal with the problem, it appears that elections like the one being fought in Bihar will continue to be all about the money.