PM Narendra Modi’s decision to demonetise Rs 500 and Rs 1,000 has already begun to take effect by wiping out politicians’ stash of black money ahead of elections in Maharashtra

For once, the common man may be better off than politicians.

With elections slated across Maharashtra in the coming days, politicians who were gearing up for war have suddenly been left without ammunition, thanks to PM Modi’s decision to demonetise Rs 500 and Rs 1,000 currency notes.

This move will be a hard blow to cash-rich candidates in the legislative council polls that are scheduled for November 19. But, the ripple effects will also be felt by hundreds of contestants in the fray for municipal polls across 212 civic bodies, which will go to poll in phases till January. Elections for the bigger civic corporations, such as Mumbai, Thane, Nagpur and Pune will follow in February.

Flow of money

Several politicians told mid-day that the development has come as a shock to them. But how does the demonetisation of high currency notes affect these elections?

“It is common knowledge that major candidates spend lots of money in civic elections despite a cap on expenditure. The cap is followed only on paper, as a large portion of expenses are not shown officially. Black money is used for this unaccounted expenditure,” said one politician.

A lot of this black money flows in from the polls for legislative council — MLC elections are indirect, which means candidates are voted to power not by the common man but by our civic representatives.

Cash for votes

The MLC polls are notorious for horse-trading and have become a major source of income for the voters. And, since they are indirect elections, there is no cap on candidate expenses.

Voters are known to prefer cash in exchange for their votes. Sources said that a single vote can fetch as much as R20-25 lakh. Some candidates have also flown voters to an all-expenses paid trip at hot destinations abroad.

Double whammy

The overlapping timing of both elections was supposed to be a boon for many, particularly those who are going to run for the civic elections. They were happy because they were planning to fund their own campaign with the money they got in exchange for their votes from the MLC candidates. But the decision of weeding out black money has ruined the hopes of both MLC and municipal candidates.

“It is a hopeless situation. Forget what the MLC candidates have promised or given us — I cannot even use my own money now. Where do I get it all monetised?” rued a municipal candidate.

This time, there are six seats up for grabs in the MLC polls, and some of the candidates in the fray are widely known for their money power. Sources said huge cash parcels have already been sent to campaign workers to woo the voters. Already, this has boosted the local economy, with the money being spent at several hotels to provide comfort to party workers.

“But voters do not want cash in denominations of Rs 500 and Rs 1,000. Those who already took money are now demanding that our candidate change the currency, or find an alternative to compensate them,” said one leader, who is in the know in the cash-rich MLC election in Yavatmal constituency in Vidarbha.

Poor little rich politicians

Yavatmal is one of the constituencies that was expected to witness an unprecedented flow of money. A sugar baron has been sent to contest there just because of his immense financial muscle. His prime opponent, an independent

sitting MLC, is equally resourceful as a big-time contractor. The two have raised the stakes to alarming levels, said local leaders.

“The competition in Yavatmal is unprecedented. The candidates are offering exorbitant compensation in cash to voters. But the government’s monetisation move has sent shockwaves through the both camps. They don’t know what to do now,” said a voter.