With the Model Code of Conduct (MCC) in force in poll-bound Tamil Nadu, some stakeholders have raised concerns over the ₹50,000 cash-carrying limit prescribed by the Election Commission of India (ECI). Those carrying cash above this limit would have to satisfactorily explain its source.
Tamil Nadu Chief Electoral Officer (CEO) Archana Patnaik had said, “If valid documentary evidence or written explanation is provided regarding the source and intended purpose of the funds and upon verification, if the authorities are satisfied that the cash is not meant for distribution to voters, such amounts will be returned to the rightful owner and will not be seized.”
However, Tamil Nadu Vanigar Sankangalin Peramaippu (a traders’ body) president A.M. Vikrama Raja questions the logic behind the cash limit. He argued the slab of ₹50,000 was fixed several years ago and urged that traders be allowed to carry cash up to ₹2 lakh. “The price of commodities were different back then when compared to the situation now,” he told The Hindu.
District Collectors should invite trader associations for talks, as they are among the most affected along with farmers, Mr. Raja said. If the documents produced for the cash were in order, traders should not be harassed unnecessarily.
“Let there be one point. Now, traders are being asked to go to the Tahsildar, then to the RDO, the Collector, or the election officer. It should not happen. There are practical issues,” he underlined. In some places, money was confiscated, just a few minutes after the Model Code of Conduct came into force on Sunday last. “Don’t we need at least some time to go home?”
V. Gopalakrishnan, who used to own a shop, suggested if the limit was only ₹50,000, banks should be directed to disburse only ₹50,000 in cash (in a single transaction) to customers. He also flagged a practical difficulty. “When a trader winds up business with several transactions during the the whole day and goes home with money, how can he/she show all the bills if they are intercepted?” To avoid trouble, he rather suggests going fully digital during the MCC. “It is not impossible. These days, even small shops have provisions for digital transactions,” he reasoned.
According to Ms. Patnaik, to redress grievances related to the decision of the authorities on cash seizure, an appeal can be made to the District Grievance Committee. The restrictions are part of efforts to ensure free and fair elections in the State on April 23. As of March 17, as many as 2,106 Static Surveillance Teams and an equal number of Flying Squads have been deployed across the State to monitor the movement of cash.
Additionally, 25 Election Expenditure Monitoring Agencies, including the Income Tax Department, Customs Department, and others, are also engaged in monitoring and surveillance. Though there are norms for checking the movement of cash and returning them after verification, the implementation of the norms may vary across districts.
In some districts, District Election Officer (respective District Collectors) has appealed to the public to avoid carrying cash above ₹50,000 without valid documents, while the Election Commission of India, in a press note, said that DEOs have been directed to obtain information regarding unusual and suspicious cash withdrawal or deposit of cash exceeding ₹1 lakh from banks for due verification followed by necessary action.
If the amount is more than ₹10 lakh, then DEOs are to pass on such information to Income Tax Department for necessary action. The Financial Intelligence Unit – India (FIU-IND) has been requested to share Cash Transaction Reports (CTRs) and Suspicious Transaction Reports (STRs) with CBDT for effective monitoring of the election expenditure of the candidates.
The Election Commission has also issued a Standard Operating Procedure for Flying Squads and Static Surveillance Teams, constituted for keeping vigil over excessive campaign expenses, distribution of items of bribe in cash or in kind, movement of illegal arms, ammunition, liquor, or antisocial elements, among others, in the constituencies during election process.
The District Grievance Committee in each district comprises three officers of the district, namely, (i) CEO, Zila Parishad/CDO/P.D. DRDA, (ii) Nodal Officer of Expenditure Monitoring in the District Election Office (Convener) and (iii) District Treasury Officer. The committee shall suo motu examine each case of seizure made by the police or SST or FS and where the committee finds that no FIR/complaint has been filed against the seizure or where the seizure is not linked with any candidate or political party or any election campaign etc., as per SOP, “it shall take immediate steps to order release of such cash etc. to such persons from whom the cash was seized after passing a speaking order to that effect.”
The commission further said: “In no case, shall any matter relating to seized cash/seized valuables shall be kept pending in Malkhana or treasury for more than seven days after the date of poll, unless any FIR/complaint is filed.”
Published – March 19, 2026 06:01 pm IST
