The Supreme Court on Friday directed that all those contesting elections must disclose their sources of income, including those of their spouse and dependent children, as "voters have a fundamental right to know relevant information" about the candidates.In a landmark judgement, a division bench Justice J. Chelameswar and Justice S. Abdul Nazeer said every candidate "has to disclose" his, his wife's and dependent children's sources of income when they file nomination for elections, so that voters could make an "informed choice" about the person to represent the constituency in the legislature."The financial background in all its aspects, of the candidate and his/ her associates (spouse and dependent children), is relevant and critical information," said the bench.It said that "undue accretion of assets of legislators and their associates is certainly a matter which should alarm the citizens and voters of any truly democratic society"."Such phenomenon is a sure indicator of the beginning of a failing democracy. If left unattended, it would inevitably lead to the destruction of democracy and pave the way for the rule of mafia. Democracies with higher levels of energy have already taken note of the problem and addressed it. Unfortunately, in our country, neither the Parliament nor the Election Commission of India has paid any attention to the problem so far."
Allowing a petition filed by NGO Lok Prahari, which sought a wide range of directions for electoral reforms, the bench said: "We are also of the opinion that the information regarding the sources of income of the legislators and their associates and candidates is relevant and legislators and candidates could be compelled even by subordinate legislation. We see no reason for declining the prayer."The NGO had sought the inclusion of a column in the nomination form seeking details of income sources, which the court allowed saying: "We direct that Rule 4A of the Rules and Form 26 appended to the Rules shall be suitably amended, requiring candidates and their associates to declare their sources of income."The NGO had claimed that the candidates, while filing their nomination papers were disclosing their assets, assets of their spouse, children and other dependents, but they were not revealing the sources of income.As per law, at present a candidate is required to disclose details of assets and liabilities for themselves, spouse and three dependents in Form 26 while filing nomination paper but not their source of income.The court also favoured establishment of a permanent mechanism to inquire/ investigate into disproportionate increase in the assets of legislators during their tenure.The bench said that in order "to effectuate the constitutional and legal obligations of legislators and their associates", their assets and sources of income were required to be "continuously monitored to maintain the purity of the electoral process and integrity of the democratic structure of this country".The state had a constitutional obligation to the people of the country to ensure that there was no concentration of wealth to the common detriment and to the debilitation of democracy, said the court.
"Therefore, it is necessary, as rightly prayed by the petitioner, to have a permanent institutional mechanism dedicated to the task. Such a mechanism is required to periodically collect data of legislators and their respective associates and examine in every case whether there is disproportionate increase in the assets and recommend action in appropriate cases either to prosecute the legislators and/ or legislator's respective associates or place the information before the appropriate legislature to consider the eligibility of such legislator to continue to be members of the concerned House of the legislature," stated the verdict.The court further said that the data so collected by the mechanism, along with the analysis and recommendation, if any, should be placed in the public domain to enable the voters of such legislator to take an informed and appropriate decision, if such legislator chose to contest any election for any legislative body in future.It also opined that declaration of sources of income within their sweep was required for taking appropriate measures to ensure that legislators and the associates did not take undue advantage of their constitutional status accorded on account of the membership of the legislature, enabling the legislator to have access to the power of the state.