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LATEST NEWS UPDATES | Foreign cash for parties

Foreign cash for parties

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published Published on Nov 23, 2016   modified Modified on Nov 23, 2016
-The Telegraph

New Delhi: The Centre today told the Supreme Court that political parties that received donation from Indian subsidiaries of foreign companies could not be said to have flouted the Foreign Contribution Regulation Act as Parliament had amended the relevant provision in 2010.

Neither the BJP nor the Congress had, therefore, violated the FCRA in receiving donations from the Vedanta Group's Indian subsidiaries between 2007 and 2009, the Centre contended. Hence, a 2014 Delhi High Court judgment holding the two parties guilty of violation had become "infructuous", it said.

The high court had passed the order while upholding a PIL filed by an NGO, Association for Protection of Democratic Rights, alleging that the Congress and the BJP had received crores in donations between 2007 and 2009 from M/s Sterlite Industries India Ltd and M/s Sesa Goa Ltd, both Indian subsidiaries of the UK-based Vedanta Group.

The Centre's counsel, Binu Tamta, told the apex court during a brief hearing today that "in view of the amendments made to the FCRA, the contributions received will not come under the ambit of 'violations'".

Under the earlier un-amended provision, it was illegal for political parties to receive donations from overseas companies whether fully foreign-owned or having Indian subsidiaries.

Following the high court's 2014 order, the government had sent notices to the two parties seeking an explanation, the Centre said. But it was found that the donations could not be considered as foreign contribution within the meaning of the FCRA.

But counsel Pranav Sachdeva, appearing for Association for Protection of Democratic Rights, argued that the two parties had flouted the 1976 FCRA provisions as the high court had held that the amended provision would not have retrospective effect.

A three-judge bench of Justices J.S. Khehar, Arun Misra and A.M. Khanwilkar said in view of the amendment to the act, it was inclined to dismiss the case. But it posted the matter for hearing on November 29.

The high court had ruled that the FCRA 1976, which had been prima facie violated by the parties, was enacted as a shield to protect the country from subversive activities.

The NGO had contended that accepting donations from foreign sources was a blatant violation of Section 4(1)(e) of the FCRA 1976. The court had then ordered the Election Commission to conduct an inquiry into the allegations, following which the two parties moved the apex court.

The Telegraph, 23 November, 2016, http://www.telegraphindia.com/1161123/jsp/nation/story_120848.jsp#.WDVIa3371_k


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