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The counting of votes for General Election 2019, which concluded on Sunday, will begin tomorrow, i.e., 23rd May at 8 AM.  The election was conducted in 7 phases for 543 constituencies of Lok Sabha.  The Election Commission of India (ECI) uses Electronic Voting Machines (EVM) to conduct elections. Since 2000, ECI has conducted 113 assembly elections and three general elections using EVMs.[1]  Voter Verified Paper Audit Trail (VVPAT) system was added to EVMs in 2013 to increase transparency and improve voter confidence in the system.  The VVPAT system generates a printed paper slip bearing the name and election symbol of the candidate.  On April 8, 2019, Supreme Court instructed the ECI that printed VVPAT slips from randomly selected five polling stations in each assembly segment of a parliamentary constituency should be matched with EVMs.[2]  In this blog, we explain the election counting process in India.

Who is responsible for counting the votes?

The Returning Officer (RO) is responsible for conducting elections in a constituency, which also includes counting of votes.[3] The RO is an officer of the government or a local authority nominated by the ECI for each constituency in consultation with the state government.[4]

Where does the counting take place?

The RO decides the place where the votes will be counted for the parliamentary constituency.  The date and time of counting is fixed by the ECI.  Ideally counting of votes for a constituency should be done at one place, preferably at the Headquarter of the RO in that constituency.  It should be performed under the direct supervision of the RO.  However, each Parliamentary Constituency has multiple assembly segments.  In this situation, counting can take place at different locations for various assembly segments under the direct supervision of an Assistant Returning Officer (ARO).

Layout of the Counting Hall

Page 431, Handbook for Returning Officer Document 23 Edition 1, Election Commission of India

Counting of votes for each assembly segment of a parliamentary constituency is performed in a single hall.  In each round of counting, votes from 14 EVMs are counted.  In case of simultaneous parliamentary and assembly elections, such as Odisha, the first seven tables are used for counting votes for assembly elections, and the rest for parliamentary elections.

In constituencies with a large number of candidates, it may not be possible to count votes for all candidates in a single hall without overcrowding it.  In such a situation, the number of counting halls or tables can be increased with the prior permission of the ECI.  A hall can also be used for counting votes of another assembly segment after the results of the first segment are declared.  However, counting may be done for only one assembly segment in a hall at any point of time.

What is the counting process?

Counting is performed by counting supervisors appointed by the RO.  Counting staff is appointed through a three stage randomisation process to ensure impartiality.  Candidates along with their counting agents and election agents are also present in the counting hall.

Counting of votes begins with Electronically Transmitted Postal Ballots (ETPB) and Postal Ballots (PB). These votes are counted under the direct supervision of the RO. Counting of EVMs can start 30 minutes after the commencement of PB counting, even if all PBs have not been counted.  At the end of each round of counting, the results from 14 EVMs are declared.

What is the process for counting VVPAT slips?

The ECI prescribes the process for randomly selecting one EVM for each assembly segment of a parliamentary constituency for VVPAT matching.  The verification of VVPAT paper slips is conducted inside a secured VVPAT Counting Booth in the counting hall with access to authorised personnel only.  Any counting table in the hall can be converted into VVPAT Counting Booth after completing EVM vote counting.  Parliamentary constituencies generally have between five and ten assembly segments.

The Supreme Court has decided that VVPAT slips of five randomly selected polling stations for each assembly segment shall be matched with the result shown in the respective EVMs.  This implies that VVPAT paper slips need to be matched for about 25-50 machines for each parliamentary constituency.  This process requires personal supervision of RO/ARO.  The ECI has decided that the counting of five VVPATs will be done sequentially.[5]  The RO can declare the final result for the constituency after the VVPAT matching process has been completed.

What happens if there is a discrepancy between the VVPAT count and the EVM results?

In such a case, the printed paper slips count is taken as final. The ECI has not clarified whether there would be any further action (such as counting of all VVPATs in a constituency or assembly segment) if there is a discrepancy in the counts of one of the five VVPATs.

[1] https://www.eci.gov.in/files/file/8756-status-paper-on-evm-edition-3/.

[2] N Chandrababu Naidu and Ors. v. Union of India and Anr WP(C). 273/2019 decided on April 8, 2019.

[3] https://www.eci.gov.in/files/file/9400-hand-book-for-returning-officer-february-2019/.

[4] https://www.eci.gov.in/faqs/elections/election-machinery/faqs-election-machinery-r1/.

[5] https://www.eci.gov.in/files/file/10197-mandatory-verification-of-vvpat-paper-slips-regarding/.

The Finance Bill, 2017 is being discussed in Lok Sabha today.  Generally, the Finance Bill is passed as a Money Bill since it gives effect to tax changes proposed in the Union Budget.  A Money Bill is defined in Article 110 of the Constitution as one which only contains provisions related to taxation, borrowings by the government, or expenditure from Consolidated Fund of India.  A Money Bill only needs the approval of Lok Sabha, and is sent to Rajya Sabha for its recommendations.  It is deemed to be passed by Rajya Sabha if it does not pass the Bill within 14 calendar days.

In addition to tax changes, the Finance Bill, 2017 proposes to amend several laws such the Securities Exchange Board of India Act, 1992 and the Payment and Settlements Act, 2007 to make structural changes such as creating a payments regulator and changing the composition of the Securities Appellate Tribunal.  This week, some amendments to the Finance Bill were circulated.  We discuss the provisions of the Bill, and the proposed amendments.

Certain Tribunals to be replaced

Amendments to the Finance Bill seek to replace certain Tribunals and transfer their functions to existing Tribunals.  The rationale behind replacing these Tribunals is unclear.  For example, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) will replace the Airports Economic Regulatory Authority Appellate Tribunal.  It is unclear if TDSAT, which primarily deals with issues related to telecom disputes, will have the expertise to adjudicate matters related to the pricing of airport services.  Similarly, it is unclear if the National Company Law Appellate Tribunal, which will replace the Competition Appellate Tribunal, will have the expertise to deal with matters related to anti-competitive practices.

Terms of service of Tribunal members to be determined by central government

The amendments propose that the central government may make rules to provide for the terms of service including appointments, term of office, salaries and allowances, and removal for Chairpersons and other members of Tribunals, Appellate Tribunals and other authorities.  The amendments also cap the age of retirement for Chairpersons and Vice-Chairpersons.  Currently, these terms are specified in the laws establishing these Tribunals.

One may argue that allowing the government to determine the appointment, reappointment and removal of members could affect the independent functioning of the Tribunals.  There could be conflict of interest if the government were to be a litigant before a Tribunal as well as determine the appointment of its members and presiding officers.

The Supreme Court in 2014, while examining a case related to the National Tax Tribunal, had held that Appellate Tribunals have similar powers and functions as that of High Courts, and hence matters related to their members’ appointment and reappointment must be free from executive involvement.[i]  The list of Tribunals under this amendment includes several Tribunals before which the central government could be a party to disputes, such as those related to income tax, railways, administrative matters, and the armed forces Tribunal.

Note that a Bill to establish uniform conditions of service for the chairpersons and members of some Tribunals has been pending in Parliament since 2014.

Inclusion of technical members in the Securities Appellate Tribunal 

The composition of the Securities Appellate Tribunal established under the SEBI Act is being changed by the Finance Bill.  Currently, the Tribunal consists of a Presiding Officer and two other members appointed by the central government.  This composition is to be changed to: a Presiding Officer, and a number of judicial and technical members, as notified by the central government.

Creation of a Payments Regulatory Board

Recently, the Ratan Watal Committee under the Finance Ministry had recommended creating a statutory Payments Regulatory Board to oversee the payments systems in light of increase in digital payments.  The Finance Bill, 2017 seeks to give effect to this recommendation by creating a Payments Regulatory Board chaired by the RBI Governor and including members nominated by the central government.  This Board will replace the existing Board for Regulation and Supervision of Payment and Settlement Systems.

Political funding

The Finance Bill, 2017 proposes to make changes related to how donations may be made to political parties, and maintaining the anonymity of donors.

Currently, for donations below Rs 20,000, details of donors do not have to be disclosed by political parties.  Further, there are no restrictions on the amount of cash donations that may be received by political parties from a person.  The Finance Bill has proposed to set this limit at Rs 2,000.  The Bill also introduces a new mode of donating to political parties, i.e. through electoral bonds.  These bonds will be issued by banks, which may be bought through cheque or electronic means.  The only difference between cheque payment (above Rs 20,000) and electoral bonds may be that the identity of the donor will be anonymous in the case of electoral bonds.

Regarding donations by companies to political parties, the proposed amendments to the Finance Bill remove the: (i) existing limit of contributions that a company may make to political parties which currently is 7.5% of net profit of the last three financial years, (ii) requirement of a company to disclose the name of the parties to which a contribution has been made.  In addition, the Bill also proposes that contributions to parties will have to be made only through a cheque, bank draft, electronic means, or any other instrument notified by the central government.

Aadhaar mandatory for PAN and Income Tax

Amendments to the Finance Bill, 2017 make it mandatory for every person to quote their Aadhaar number after July 1, 2017 when: (i) applying for a Permanent Account Number (PAN), or (ii) filing their Income Tax returns.  Persons who do not have an Aadhaar will be required to quote their Aadhaar enrolment number indicating that an application to obtain Aadhaar has been filed.

Every person holding a PAN on July 1, 2017 will be required to provide the authorities with his Aadhaar number by a date and in a manner notified by the central government.  Failure to provide this number would result in the PAN being invalidated.

The Finance Bill, 2017 is making structural changes to some laws.  Parliamentary committees allow for a forum for detailed scrutiny, deliberations and public consultation on proposed laws.  The opportunity to build rigour into the law-making process is lost if such legislative changes are not examined by committees

[i] Madras Bar Association vs. Union of India, Transfer Case No. 150 of 2006, Supreme Court of India, September 25, 2014 (para 89).