HC Orders Action on Congress, BJP, for Flouting FCRA Law

Delhi HC asked Centre, Election Commission to take action against Congress and BJP for accepting foreign funds violating the law.

Published: 05th April 2016 05:57 AM  |   Last Updated: 05th April 2016 05:57 AM   |  A+A-

NEW DELHI: The Delhi High Court has asked the Centre and the Election Commission to take appropriate action against the Congress and the BJP for allegedly accepting foreign funds in violation of the law.

A division bench of Justice Pradeep Nandrajog and Justice Jayant Nath held that the two natio­nal political parties flouted norms of the Foreign Contribution (Regula­tion) Act, rejecting the stand taken by the Union Home Ministry.

High Court directed the Home Ministry and the Election Commission to take a relook and reappraise the receipts of the political parties to identify foreign donations and take action within six months.

The court’s order came in response to a PIL filed by the Association for Democratic Reforms through advocate Prashant Bhushan, which accused that the Britain-based Vedanta Resources and its subsidiary companies in India — including Sterlite Industries, Sesa Goa and Malco of allegedly donating several crores of rupees to major political parties like the Congress and the BJP.

In its order, the High Court came to the conclusion that “Vedanta is a ‘foreign company’ within the meaning of the Companies Act, 1956 and therefore, Vedanta and its subsidiaries — Sterlite and Sesa — are a ‘foreign source’ as contemplated under the Foreign Contribution (Regulation) Act, 1976.”

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