Are we actually a democratic country?

When the Union Finance Minister himself did not have enough money to compete, I felt that in our democracy, the poor and the middle class should not be able to enter the legislature except the rich. How can that be a perfect democracy? When the Election Commission has fixed the spending limit for Lok Sabha elections at ₹95 lakhs and ₹40 lakhs for Assembly elections, why is the same committee not taking proper vigilance and taking strict action to control the miscreants if hundreds of crores are being spent by the candidates?