In the 2019 Lok Sabha elections in Tamil Nadu, 38 out of the 39 winners were from the DMK alliance, but over half of them do not plan to run for re-election. Reports suggest that they are struggling to repay loans taken to finance their campaigns, as they have been unable to generate the necessary income. The DMK claims that during the last election, up to five crore rupees were collected as election funds from candidates not running under their banner, some of whom were wealthy and did not require funding. The DMK also stated that if elected, an MP could earn significant income through a 25 percent commission on the 5 crore rupees allocated annually for constituency development, as well as by nominating individuals for seats in Kendra Vidyalaya schools. There was also the potential for MPs to earn money through “mediator” work in Delhi. However, due to the cancellation of the Constituency Development Fund and the nomination of MPs for KV schools as part of the government’s efforts to fight the pandemic, MPs are now struggling to make ends meet, particularly those from constituencies like South Chennai, Kanchipuram, Mayiladuthurai, Tenkasi, and Thiruvannamalai. The situation is different for MPs from coalition parties, as they were allocated funds by the DMK for their campaigns. However, despite this, they are also facing financial difficulties due to their lack of income from being an MP. Consequently, DMK has decided to allocate seats only to alliance parties in the next election, and many MPs from coalition parties are hesitant to stand for re-election due to the financial burden of campaigning.
It has been reported that they are suffering as they are unable to earn the money spent for the election and unable to pay the interest on the loans taken. Regarding this, DMK sources said:
During the last Lok Sabha elections, apart from a few who contested on behalf of the DMK, up to 5 crore rupees were collected from others as election funds.
Some of them are very rich. So, they don’t have any problem regarding election funds, but others, thinking of contesting the election and becoming an MP anyway, took loans at interest and gave election funds.
* If you become an MP, you will get Rs 1.25 crore as a 25 percent commission out of the Rs 5 crore constituency development fund provided annually by the central government. 6.25 crores for five years for sure
* In Kendra Vidyalaya schools known as KV schools, up to 10 ‘Seats’ are allotted annually to persons nominated by MPs.
Through this, one ‘seat’ will get Rs 50 lakh per year, ie Rs 5 lakh. 2.5 crore rupees in five years in that way for sure
* If you become an MP, you can create influence in Delhi and earn a few crores through ‘mediator’ work. Their calculation was that through these three types of procedures, 10 crore rupees will be definitely available.
But the Modi-led BJP has returned to power. Due to this, the DMK and coalition MPs lost their expected income.
To fight the Corona epidemic for two years, the Central Government has canceled the Constituency Development Fund which was provided to MPs. Also, nomination of MPs in KV schools was cancelled.
Due to this, due to the lack of expected cash flow, many MPs were left in a precarious position. Apart from salary and perks, there is nothing to be called income, to pay interest and principal on the loan taken for the election.
Couldn’t. Thus, most of the MPs from Tamil Nadu are suffering from debt burden. Especially candidates selected from constituencies including South Chennai, Kanchipuram, Mayiladuthurai, Tenkasi, Thiruvannamalai etc.
are under load.
The situation for coalition MPs is different. Last time DMK gave 25 crore rupees to both the Communist parties for election expenses. Similarly, other alliance parties were also paid. So, for the coalition parties, the election expenses and the need to take loans for the same have disappeared. However, due to lack of income from this position, they are also facing cash crunch.
The DMK leadership has decided to give only ‘seats’ to the alliance parties in the upcoming Lok Sabha elections. Therefore, those who won on behalf of coalition parties are reluctant to ask for the opportunity to contest in the upcoming elections.
So, give chance to newbies. DMK sources have said that the alliance parties have been forced to make candidates, seeing them as spenders of money for elections.