Section 177 of Bharatiya Nyaya Sanhita (BNS): Failure to Keep Election Accounts

Section 177 of the Elections Act directs imposition of heavier penalties for individuals and entities that fail to keep proper and complete records of the expenses incurred in connection with elections. The systematic code of conduct for expenditure provides that any person required to maintain proper books of accounts for any expenditure relations to elections shall be liable to substantial fines which may be six thousand rupees in case of failure of this primary obligation. 

This clause helps prevent financial crimes and promotes compliance in maintaining registers as per the accounting norms with a view to ensure that the elections are credibility held with maximum trust of the citizens on the process. In this regard, the law intentionally prescribes the imposition of the penalties to call for financial discipline among all election players by ensuring that every expenditure is reported and defensible. 

Section 177 of BNS

Failure to maintain accurate records of election expenditures is punishable under Section 177 of BNS. Those who fail to preserve these records could face fines of up to five thousand rupees.

Section 177 of BNS is part of CHAPTER IX OF OFFENCES RELATING TO ELECTIONS in Bharatiya Nyaya Sanhita.

Legal Statement of Section 177 of BNS

“Whoever being required by any law for the time being in force or any rule having the force of law to keep accounts of expenses incurred at or in connection with an election fails to keep such accounts shall be punished with fine which may extend to five thousand rupees.”

Meaning of the Statement

If someone is legally required to keep track or record of money spent during an election and if they don’t do it, they can be fined up to five thousand rupees.

Illustration

Imagine a candidate running for office who spends money on campaign materials, rallies and advertisements. According to the law, this candidate must keep detailed records of all these expenses. If the candidate fails to maintain these records and is found out then they could be fined up to five thousand rupees for not complying with the legal requirement. This law helps ensure that candidates are accountable for their spending during elections.

What is Chapter IX of Offences Relating to Elections?

Chapter IX of BNS contains legal provisions for the offences of election. It describes various unlawful acts that may be committed in the course of the election process, including the following:

1. Corrupt Practices: This category covers evildoings including bribing voters, forcing them to vote or fooling them with false information.

2. Interference with the Election Process: Acts that disrupt the electoral process, such as spreading fear or using violence at polling places, are referred to as interference with the election process.

3. Election-related offences: These include actions such as voting on behalf of another individual, disrupting ballot-collecting gear or altering the election outcome.

Definition of Section 177 of BNS

1. Subject to Legal Obligation: 

According to the law, people are required to maintain records of the costs associated with an election.

2. Documentation of Expenses: 

This refers especially to the requirement to keep track of every expense spent during an election campaign.

3. Applicable to All: 

Candidates, parties and their representatives are all subject to this obligation, as is everyone else participating in the elections.

4. Failure to Comply: 

A person is breaking the law if they don’t maintain these accounts.

5. Penalty Imposed: 

A hefty fine is imposed as a result of this failure.

6. Maximum Penalty: 

Failure to maintain the necessary accounts may result in a fine of up to 5,000 rupees.

7. Purpose of Regulation: 

This law aims to ensure transparency and accountability in election spending.

Details of Section 177

The BNS – more specifically, the provisions of section 177 – puts emphasis on the maintenance of election accounts. It prescribes that every individual to whom the election laws apply and who is the one responsible to keep the account of expenditure shall do so. Non-compliance with this provision may result in penalties including fines of up to ₹5,000. This particular section, despite having a fairly lenient punishment inscribed within it, is of great importance in the encouragement of transparency during the election period​.

Value of Maintaining Election Records

The most important aspect of democracy is elections and the money spent during the campaign might affect the result. Maintaining thorough records of election-related spending guarantees openness, guards against corruption and encourages candidates to compete fairly. Voters are entitled to know the amount spent and the source of funding. The purpose of this clause is to guarantee that applicants follow these guidelines. 

To whom does this apply?

Anyone participating in the voting process is subject to this legal requirement. This comprises:

1. Candidates: Those seeking public office need to keep a close eye on their campaign spending.

2. Political Parties: Groups that support political candidates must also keep correct financial records.

3. Election Agents: Those working for candidates are subject to these accounting regulations.

Why is Accountability in Elections Important? 

Elections are a big part of any democracy, so making sure they are fair and honest is very important. One of the biggest concerns in elections is how money is used. Spending too much or not reporting how much money is spent can change the results of the election. To stop this from happening, Section 177 of the BNS makes rules that require candidates and political groups to report how much money they spend during an election. If they don’t, they can get in trouble for not following the rules. 

Why Section 177 is Important

The primary objective of Section 177 is to purify elections and prevent any bad practices involving money. This provision states that any candidates who participate in the elections shall declare their expenses. This helps prevent avoidable expenses or malpractices against the other candidates. It also helps keep voters safe from being forced to do things like supporting a candidate in a dishonest way.

What Happens If You Don’t Follow the Law

If someone doesn’t follow the rules in Section 177, they can get a fine of up to ₹5,000. Even though this fine isn’t very big, it reminds people that being honest with money during elections is very important. This law helps make sure the elections are fair and that everyone has a fair chance. It also helps stop people from lying about how much money they spend during the election.

Difference between IPC and BNS regarding Failure to Keep Election Accounts 

Indian Penal Code (IPC)	Bhartiya Nyaya Sanhita (BNS)
In IPC, Section 171-I deals with Failure to keep Election Accounts.	In BNS, Section 177 deals with Failure to keep Election Accounts.
It was assented in 1920.	It received the assent of the President on the 25th December, 2023.
It came into effect in 1920.	It came into effect on July 1, 2024.
Statement:Failure to keep election accounts.–Whoever being required by any law for the time being in force or any rule having the force of law to keep accounts of expenses incurred at or in connection with an election fails to keep such accounts shall be punished with fine which may extend to five hundred rupees.	Statement:Whoever being required by any law for the time being in force or any rule having the force of law to keep accounts of expenses incurred at or in connection with an election fails to keep such accounts shall be punished with fine which may extend to five thousand rupees.
It come under Chapter IXA of IPC	It comes under Chapter IX of BNS
Fine under IPC is extended upto 500 rupees	Fine under BNS is extended upto 5000 rupees

Difference in Significant Aspects of BNS and IPC

1. Priority Given to Legislation: 

• IPC: Being a very old legal regime, the Indian Penal Code encompasses all the criminal activities and has been applicable since colonial times.

• BNS: This is comparatively an advanced system put forward with an objective to do away with some of the sections of IPC with the aim of enhancing criminal justice in India.

2. Amount of Penalty:

• IPC: The fine for failing to keep accounts can extend up to Five Hundred rupees.
• BNS: The fine for failing to keep accounts in BNS can extend up to Five Thousand rupees. 

3. Purpose and Orientation:

• IPC: The provisions are mostly looking at the law and order maintenance because of the wider range of penalties and other enforcement measures.

• BNS: This is more accountable but it may be seen in a more positive light with less focus on punishment for petty crimes.

4. Adoption and Application:

• IPC: Provided with certain structures and traditions for implementation over time as the practice has been in existence for long.
• BNS: Being a relatively fresh concept, full scale implementation may still be underway, with possible differences crystallizing in assistance.

Similarities in BNS and IPC on Failure to Keep Election Accounts

1. Keeping Records: 

Both BNS and IPC say that people involved in elections must keep track of how much money they spend.

2. What Happens if You Don’t Keep Records:

Both laws explain that not keeping these records is against the rules and is considered breaking the law.

3. Why It’s Important:

Both laws help make sure that elections are fair and stop people from using money in dishonest ways.

4. Punishment: 

If someone doesn’t follow the rules, both laws say they will have to pay a fine as punishment. 

5. Who Has to Follow These Rules:

The rules apply to anyone involved in the election, like candidates, political parties or agents who spend money on elections.

Bharatiya Nyaya Sanhita Section 177

Section	177
Offence	Failure to keep Election Account
Punishment	Fine up to 5000 rupees or more
Cognisable or Non-cognisable	Non-Cognisable
Bailable or Non-bailable	Bailable
By What Court Triable	Magistrate of the first class

Legal Process Involved in Filing Election Accounts

1. Step‐by‐Step Process of Maintaining the Election Accounts

Filing of election accounts is the process which plays a major role in making the election campaigns transparent in respect to the spending. So as to avoid the losing of the deposit, every nomination paper filed by a prospective candidate carries with it an implied excepted duty of care to keep expenditure records of every single cent spent during the campaign by the candidate. That covers all the payments of individuals, towards advertisements, rallies and every other thing that has an expense during the course of the campaign.

Usually, the appropriate authority is the Election Commission with whom these records must be filled in within specific time period, after the elections are over, by the candidate. The records must be complete, true and not self-explanatory in nature, supported by the relevant source documents such as vouchers, receipts and other evidence in relation to the expenditures.

2. Vote Monitoring by Election Commission

The Election Commission is responsible for overseeing the entire election process including monitoring and evaluating the election expenditure of candidates among others. It takes appropriate steps to assure that no candidate exceeds the maximum expenditure limit set by the provisions of the laws. The commission is also entitled to call candidates for explanation and carry out the auditing of the claims made concerning the expenditures incurred.

If there are evidence of missing records or inconsistency in the information provided then the commission may take disciplinary action and investigations may follow which may entail a fine. In certain situations, violation of these rules can lead to loss of office.

3. Consequences of Not Filing or Incomplete Submissions of Accounts

As highlighted in Section 177 of the Bharatiya Nyaya Sanhita (BNS) and in line with the legislation pertaining to elections, failure to keep or present the correct election accounts is punishable by fines. This law violates free speech which may incur civil and criminal penalties as much as ₹5,000. Even though this is a nominal amount, it warns people off breaking the electoral law, which could affect a candidate’s name and chances of winning other elections in the future in a broader sense. 

4. Non-Monetary Defects

On top of financial punishment, delay or failure to comply with reporting requirements may lead to various other legal issues. It includes removing the candidates from the ballot in subsequent election cycles and in drastic situations, if evidence of misrepresentation exists, felony charges may be filed. This makes certain that the candidates play by the rules and run clean campaigns.

Importance of Transparency in Election Spending

1. Avoiding Discrimination in Elections

Electoral transparency has a significant bearing on the appropriateness of the functioning of a democratic system. In this regard, for example, it seeks to ensure that all the candidates are treated fairly and all their expenditure incurred while contesting an election is duly proved by them. When candidates are forced to account for their expenditures, there is less scope for financial impropriety during the campaigning process which ensures that elections are better for all contestants.

Such transparency promotes accountability in the use of resources and mitigates the risks of fund abuse which may give a skewed edge to richer candidates. There is no reason why the voters, should accept the fact that elections are for sale or that wealth determines the victor​.

2. Enhancing the Faith of the Public in the Electoral Process

Spending on political competition and election monitoring improvement is not the only thing to strengthen the people’s confidence in the electoral system; it also includes the enforcement mechanism. The discipline of candidates, regarding the laws on election expenditures, is an indication that there will be no dirty campaign. This is necessary for the order of any society that practices democracy.

Otherwise, in case of default, unsanctioned behaviours will be the case and the attitude of voters will be peripheral. In this case, however, it is not the case that the citizens will be indifferent as to the outcome of the elections since they will realize that their voice counts and the election was conducted credible underpinning the results​.

3. Reducing the Category of Black Money and Corruption

Corruption in politics and bribery have always been characteristic of Indian elections. To reduce these tendencies Section 177 provides a provision requiring disclosure on the account of all money spent for campaigning. A situation when such election expenditures are not visible or suppressed is a ground for other unlawful acts for example bribing of voters or public officers.

This is facilitated by making it obligatory to declare the financial resources utilized for the campaigns, which eliminates the risk of the campaigns being financed by corrupt and other illegitimate means suitable for gathering money. This makes the competition cleaner and gives greater confidence to the voters in the integrity of the election process.

4. Educating Voters through Information

When there is transparency and disclosure on election costs to the voters, there is pertinent information to the voters on how the aspiring leaders carry out their election campaigns. This enables the voters to understand if the actions of a candidate are consistent with the conduct that they promised to exhibit. Moreover, it helps the society in ensuring that the candidates do not misappropriate funds meant for their campaigns.

Educating the voters is important as they are likely to make better choices which will result in improved governance. In this manner, Section 177 promotes financial accountability and exerts positive influence to the voters thereby advancing democratic development.

Few Scenario on Section 177 of BNS

1. Scenario: Failure to Keep Election Accounts

• Context: 

In the pretext of party politics, a wannabe politician by the name of Ravi Sharma is contesting for the forthcoming state assembly polls in the Party. According to Indian election law all expenses happening during the election campaigns by Ravi must be properly accounted for showing them in a budget.

• Situation: 

Organizing funds for political purposes such as for rallies, adverts, and outreach programs which she is engaged in. However, she rather chooses to take it easy on the expenses and makes sure this is not documented, partly relying on her memory and verbal understanding with her campaign crew. Furthermore, he has no written estimation of the costs incurred in promotional activities, managing events performed and even hire purchases to his election agents on the due course of time when the elections happen.

• Legal Implications: 

In terms of the BNS, Section 177 provides for the situation where other person’s election campaign accounts are managed Accounts for every person’s election campaign, including, for example, Ravi’s, should be kept. This is the denial of the provision of the BNS: Section 177 Obligation. There are such indicators in the law, that a person, who is an account keeper specifically for such purposes has not carried out one of his duties, in this case, provision of account, may incur punishment of five thousand rupees.

• Consequence: 

The post election period has always seen a frequent check on the funds spent as a campaign by the Election Commission. In the case of Ravi, who abused the privilege of not rendering accounts, the Election Commission decided to take measures contrary to Section 177 of the BNS – thus the campaigner became the target of the BNS law enforcement without taking active part in campaigning. Ravi has to visit a local magistrate’s court and it is therein that he understands what provisions of the law he did not fulfill.

• Outcome: 

In the course of the court session, the magistrate listens to the case and containing a decision says that  Ravi is guilty for not adhering to the provision ‘towards keeping of records’ for expenditure in relation to election campaign funds. Therefore in punishment for contravening the election-funding provisions, Ravi is sentenced to pay a fine of fifteen thousand rupees.

• Broader Impact: 

It warns all the election candidates and political parties about the importance of the electoral records. It highlights the purpose and object of Section 177 of the BNS which is to ensure and promote discipline in financial management where elections are conducted in clean cents. For this reason, the law also prescribes penalties for the offenders with the purpose of minimizing the financial malpractices and strengthening the faith of the society in the elections.

2. Scenario: Failure to Maintain Accurate Election Records

• Context: 

Anjali Verma is a local council candidate in her district and is a was running under the activities of the “Unity Party”. Due to the nature of her political campaign, Anjali is advised to keep accurate and complete accounts of all receipts expense for political campaign over time.

• Situation:

During the entire course of her campaign, Anjali incurs heavy costs on advertisement materials, rallies and promotional events. However, because she is busy trying to connect with people and market herself, she does not bother keeping proper records of her expenses. All she does is keep receipts in a shoe box, planning to sort them out later which would entail balancing her books.

• Legal Consequences: 

As stated in the BNS Section 177, Anjali is responsible to ensure the proper accounting of all expenditure incurred during her election campaign. The law states that her failure to have such accounting records is also in contravention of this law. Thus the law states that any such person who does not maintain such records shall be liable for a fine of up to five thousand shillings.

• Consequences: 

After general elections, the local Election Commission checks the campaign expenditure and income statements of all candidates. It comes out in the course of this checking that the documentation of Anjali’s campaign activities is not only less than complete but very sloppy as well. The Commission summons her for a hearing in connection with these facts.

• Outcome: 

After the hearing, the Commission ruled that Anjali has breached legal requirements that required her to keep a proper account of her campaign expenditures. As a result, her file has been resent to the district magistrate’s court. The court adjudicates on the case and upholds that the penalty of fine is warranted by her failure to sustain proper records. She is however in trouble for non compliance and a penalty of three thousand rupees is imposed on her. The fine reinforces the importance of strict adherence to the responsibility of accounting for expenditure during the election period.

• Broader Impact: 

Anjali’s case is a warning to every aspirant regarding the importance of accounting and bookkeeping practices in elections. It shines some light on Section 177 of the BNS which aims at increasing transparency in the funding of political activities. The punishment meted out reiterates the need for candidates to abide by such laws and encourages the public that the election process is above board and free from corruption.

Example Based on Section 177 of BNS

1. Candidate’s Campaign Expenditure

In a local election context, a candidate incurs a lot of expenses in running advertisements, organizing rallies and printing campaign tools but fails to document these expenditures appropriately. Subsequently, after the election, an audit is carried out and there is no trace of evidence confirming the above expenses. Due to a failure to free the records of the election expenses the candidate pays a fine of 5000 rupees capping under BNS section 177.

2. Compliance by the political party

A particular political party organizes a wide ranging campaign with the view of winning a general election but does not keep all the financial records as the laws prescribe. With a follow up complaint, the Election Commission looks into the matter and determines that the party breached Section 177. The party thereafter suffers a consequence for not availing accounts of funds used for the elections.

3. Election Agent

An expenses agent for a candidate’s elections fails to manage any expense account particularly in relation to travel and promotion of the campaign. When looking into the works of the agency, it was discovered that there were no documents supporting any significant expenses. Section 177 was breached because of the failure to record expenses, thus the agent will pay the fine of 5000 rupees under this section and this shows the need for accountability in the management of elections.

4. Local Body Elections

In the course of the local body elections, a particular candidate was found to make certain expenses without keeping any record of them. Subsequent to the questioning of the candidates by voters at the polls, an inquiry is undertaken and the candidate is punished under Section 177 with a fine intended as a message for future compliance.

5. Non-Governmental Organization Endorsing Contestants

An NGO which backs several aspirants during elections engages in campaign activities however does not properly account for the expenditures incurred. After the elections, the authorities subjected the NGO to scrutiny and imposed a fine under Section 177 for Lack of Records. Such case stresses that all the entities participating in elections are required to follow the accounting standards.

What the Election Commission Does?

The Election Commission looks closely at the money records that candidates turn in during elections. This helps keep the election fair by making sure no one cheats or spends too much. If a candidate doesn’t follow the rules, they could get in trouble, like being fined or even not allowed to run in the election.

Why It’s Important to Follow the Rules?

Following Section 177 is very important. When candidates keep honest money records, they show they are doing the right thing. This makes people trust them more and helps keep elections fair, so no one uses secret or bad money to win.

Why Fair Elections Matter

As elections in India change, laws like Section 177 help keep elections honest. This law is important for making sure that elections are safe from cheating, corruption and that everyone has a fair chance to win.

Conclusion

It is required by law to keep an account of the election expenses and it also helps in the preservation of the fairness of the elections. The provision requiring such accountability and the punishments for breach of it ensures certain degree of openness, justice and confidence of the people in the electoral processes. 

As voters and citizens, such laws should be appreciated and efforts made towards enhancing the electoral integrity should be supported. And when candidates are responsible for their expenditure, our democracy is in good health and all votes have the same value.

Frequently Asked Questions in Section 177 of  BNS

Q1. What is Section 177 of the BNS?

Ans1. Section 177 of the Bharatiya Nyaya Sanhita states that every election officer, political party and election candidate has the pecuniary responsibility in respect of the election expenditure limit contained in the propisitians. But noncompliance may attract a penalty of five thousand rupees.

Q2. Who has to keep and maintain election accounts as per Section 177?

Ans2. Each candidate, each political party and its members or anyone engaged in the election activities is required by law to clearly maintain the account of the expenses incurred.

Q3. What is the penalty for non maintenance of such records by any person?

Ans3. In an event of a failure in the upkeep of the prescribed accounts, a contravener shall be liable to penalties, with a heavy fine not exceeding five thousand rupees being one of the sanctions available. This is meant to curb the unreasonable funds expenditure in an election.

Q4. What type of expenses are to be recorded?

Ans4. All the expenses that a candidate incurs for the purpose of the election campaign, for example, campaign materials, advertisement, rallies and other election related expense have to be accounted for by the candidate.

Q5. Evaluate the Section 177 with other provisions on the topic within the Indian Penal Code (IPC).

Ans5. Although, in the IPC (Section 171-I) the non maintenance of election accounts attracts a fine of a maximum of five hundred rupees, the maintenance of BNS on the other hand, quite dramatically escalates this punishment to a figure of five thousand rupees. This shows how there are stronger measures against the misuse of public funds in elections.

Q6. Why is it important to maintain accurate election accounts?

Ans6. Having such records and accounts put in place eases and strengthens the fight against corruption in the electoral processes. Also, it guarantees that the voting populace is enlightened on the sources of money in the campaigns and the amount spent.

Q7. What procedure is taken to impose penalties as provided under section 177?

Ans7. If it is alleged that a candidate has been negligent in the record keeping, that candidate’s case shall be referred to a magistrate. The magistrate shall determine the level of sanctions to be meted out, which may include imposition of a fine.

Q8. Is the penalty under Section 177 bailable?

Ans8. Yes, violations of Section 177 are considered bailable offences, meaning that individuals can secure their release by paying a bail amount.

Q9. Which court has the authority to hear all cases that comes under section 177?

Ans9. Offenders of section 177 of BNS shall be triable at the first class of a magistrate court.

Q10. How Section 177 assists with the maintenance of election-related activities

Ans10. By imposing fines in respect of failure to comply with record keeping, Section 177 urges the contestants to respect the law and the ethics which in turn assists in maintaining the credibility and the sanctity of the election. 

Q11.Are there any specific formats or instructions on how these accounts should be maintained?

Ans11.However, it should be noted that this requirement may not be applicable in every case, as the law requires that every business maintains proper books of accounts.. It is on the safer side of the argument for candidates or political parties to adhere to any ECI guidelines that may contain relevant formats or rules on account maintenance.

Q12. What if a candidate cannot meet all the record requirements because of many reasons?

Ans12. In the event an applicant has a genuine problem with regard to being able to keep up with proper records as required because of certain reasons that might happen, it is allowed for him or her to address the situation as necessary to the relevant bodies. Any such reasons or challenges should however be raised and documented properly.

Q13. Are the penalties imposed in accordance with Section 177 subject to appeal?

Ans13. Yes, a person charged and convicted under section 177 may appeal the conviction to a higher authority. It is advisable to seek legal help for information on how to go about an appeal.

Q14.  How does Section 177 help in combating electoral corruption?

Ans14. Section 177 does this by imposing ilk fines for the violation of any provisions related to election returns. This helps in preventing any corrupt tendencies in the handling of money by making it mandatory for the aspirants to account for every cent spent. This kind of accountability helps in bringing back the faith of the electorate in the processes of elections.

Q15. What is the duration of keeping the election account records?

Ans15. Generally, candidates are expected to take care of the responsibilities from the point of their nominations to that of the announcement of the election results. It is important to say that every record should be maintained within this period.

Q16. How do to know if someone has broken the law? 

Ans16. Violations can be detected through audits, complaints from the public or inspections by election authorities. The Election Commission can also conduct an inquiry in case there is a difference in the figures given for expenses in the reports and amounts spent.

Q17.What is the function of election agents as regards Section 177? 

Ans17. Election agents have the duty of controlling campaign funds of a particular candidate. They also have to make sure that expenses are entered correctly and lawfully as they too can be liable under section 177.

Q18. Are there any educational resources available for candidates regarding compliance?

Ans18. Yes, the Election Commission often provides resources, workshops and guidelines to educate candidates and political parties about their legal obligations regarding financial disclosures and record-keeping.

Q19. How does Section 177 interact with other election related regulations?

Ans19. Breach of section 177 of the constitution enhances various aspects under the election laws aimed at securing free and fair elections. It is supplemented by the laws on financing of campaigns and the requirements of disclosure of expenditure in order to promote accountability in the electoral process.

Q20. Can individuals other than candidates be penalised under Section 177?

Ans20. Yes, anyone involved in the election process like party officials, campaign managers or election agents can be penalised if they fail to maintain proper accounts as required by law.

Q21. Is Section 177 of BNS similar to any old provision in the Indian Penal Code (IPC)?

Ans21. Yes, Section 177 corresponds to Section 171I of the IPC, which also dealt with failure to maintain election accounts but had a lower penalty.