What does Losing a Deposit means?

Losing deposit in elections is when a candidate fails to secure one-sixth (16.7%) of the total votes polled in the constituency. This is an essential aspect of the elections as it ensures that only serious and capable candidates contest the elections. It also ensures that the voters have a real choice in the elections and that their vote is not wasted on a candidate with no chance of winning. Another advantage of this system is that it saves the time and money of the candidates who would otherwise have to contest the elections. 

• A deposit is a sum of money that must be paid by the candidate to the Election Commission of India at the time of nomination in an election.
• A candidate or party may lose their deposit if they fail to secure 1/6th percentage of votes in an election.
• The loss of a deposit can be a significant setback for a candidate or party and may discourage others from standing in future elections.
• Losing a deposit is often seen as a sign of electoral failure and can damage a party’s or candidate’s reputation. 

Advantages of the Election Deposit Rule:

The advantages of losing a deposit are:

• Losing deposits discourages candidates from running and saves the government money, by avoiding the seat that would otherwise be uncontested. 
• It may encourage more voters to participate in the election process, as they know that their vote will be more consequential in an election with fewer candidates.
• In democracies, an Election Deposit is a sign that the candidate is willing to put out their beliefs and fight for what they believe in.
• While the candidate may not have won the election, they are still able to make their voice heard and have a significant impact on the people.
• It can discourage negative campaigning, as candidates may be less likely to attack their opponents if they risk losing their deposits.
• It can reduce the cost of elections, as candidates who are confident of winning may be less likely to spend large sums of money on their campaigns.
• It can increase voter turnout, as voters may be more likely to participate in an election if they believe that their vote could make a difference in the outcome.

Drawbacks of the Election Deposit Rule:

The disadvantages of losing a deposit in an election are: 

• Losing a deposit can also have a psychological impact on a candidate, as it may be a blow to their ego.
• It can also make it more difficult for new or independent candidates to submit the deposit, as they may not have the financial resources and may feel that it is not worth the risk.
• It can discourage candidates from standing in elections, as they may feel that it is not worth the risk.
• Candidates who do lose their deposit may find it difficult to get another one, as they will be seen as a risk.
• It can also have a negative impact on a candidate’s reputation, as it may be seen as a sign of failure.
• It can also mean that a candidate is not eligible to stand in future elections.
• It can be a strong discouragement to potential candidates, especially if the deposit is high.
• It can also have a negative impact on a candidate’s family and friends, as they may feel disappointed or embarrassed.

According to the Representation of People Act, 1951, a candidate requires to deposit a certain sum of money as security to contest a Parliamentary or Assembly election. To contest a Parliamentary election, the amount is Rs 25,000 and in the case of a State Assembly election, it is Rs 10,000 and in the case of Scheduled castes and scheduled tribes candidates, the amounts are 12500 and 5000 respectively. This system is in place to discourage candidates from standing for election if they are not confident of winning or if they do not have enough support. According to the data, in the Lok Sabha Election 2019, over 7K candidates lost their deposits.