The Supreme Court of India has reserved its judgment on a plea by multinational auditing firms, including Deloitte and KPMG, challenging the Election Commission’s exclusive authority over conducting Lok Sabha elections.

Arguments Presented Senior advocates Arvind Datar and Mukul Rohatgi, representing the petitioners, argued that the Central government should have the power to set conditions for audit and accountancy firms, and the Election Commission should not hold an absolute monopoly over election processes. They cited the Companies Act, 2013, which redefined “Accountant” to include foreign firms, and noted that the Maharashtra State Bar Council allows foreign lawyers to practice in India, suggesting a similar approach could apply to accountancy firms.

In response, Saleem Ahmed, counsel for the Election Commission, emphasized the broad implications of the issue, urging the Court not to alter existing statutory provisions.
Court’s Observations The bench, led by Chief Justice Ramana and including Justices Surya Kant and Aniruddha Bose, indicated that the issues of foreign firms’ involvement and the Election Commission’s monopoly should be considered separately. The Court advised the Long Form Joint Auditors (LFJAs) to seek clarifications from the Department of Economic Affairs or file a writ petition in the high court if needed.

Context and Implications:
The Election Commission has traditionally maintained sole control over Lok Sabha elections. However, with evolving business dynamics and growing foreign firm presence in India, the role of such firms in the election process is under scrutiny. The petitioners’ challenge seeks to open the door for foreign auditing firms to participate, raising questions about the Election Commission’s monopoly.

Conclusion:
The Supreme Court’s forthcoming order will be pivotal in determining whether foreign firms can play a role in India’s election processes. As the business landscape evolves, this ruling could reshape the involvement of multinational firms in the conduct of Lok Sabha elections, balancing statutory provisions with modern demands.

References:

• https://thelawcodes.com/news/supreme-court-to-rule-on-foreign-firms-role-in-lok-sabha-elections/
• https://thelawcodes.com/law-firm-in-chandigarh/
• https://thelawcodes.com/law-firm-in-gurgaon/
• https://thelawcodes.com/supreme-court/