No FCRA violation by BJP, Congress: Govt to SC

New Delhi: The Centre on Tuesday informed the Supreme Court that both the BJP and the Congress had not violated the provisions of Foreign Contribution (Regulation) Act in receiving donations from companies towards political funding.

Counsel for the Centre made this submission before a three-judge bench of Justices J.S. Khehar, Arun Mishra and A.M. Kanwilkar during the hearing of the two appeals filed by BJP and Congress against a Delhi HC verdict asking the Centre and the Election Commission to take appropriate action for allegedly accepting foreign funds in violation of the law.

Supporting both the parties, the Centre’s counsel said in view of the amendments made to the FCRA Act, the contributions received will not come under the ambit of “violations”.

The counsel said subsequent to the HC verdict notices were sent to the parties seeking their explanation and it was found that contributions received were not foreign contributions within the meaning of the FCRA and hence no action was called for. Counsel for the Election Commission submitted that the HC had rendered the findings against the two companies without even hearing them.

Acting on a public interest petition, the High Court had held that both the Congress and BJP flouted the norms of the Foreign Contribution (Regulation) Act and directed the Union Home Ministry and the EC to “relook and reappraise the receipts of the political parties” to identify foreign donations and take action.

Referring to the donations received by the two parties from Vedanta and its subsidiaries — Sterlite and Sesa, the High Court had said “are a ‘foreign source’ as contemplated under the Foreign Contribution (Regulation) Act, 1976. Prima facie the acts of the respondents (Congress and BJP) inter se, clearly fall foul of the ban imposed under the Foreign Contribution (Regulation) Act as the donations accepted by the political parties from Sterlite and Sesa accrue from ‘foreign sources’ within the meaning of law.”

On Tuesday senior counsel Mohan Parasaran, appearing for Congress contended that the contributions received from companies which are subsidiaries of Indian companies would not be deemed to be contributions from a foreign sources even though they are foreign companies. Counsel said since the Union government had amended the provisions in 2010 with retrospective effect, donations received during 2007 to 2009 will not come under foreign funding.

Justice Khehar told the counsel that in view of the amendments to the law with retrospective effect, the appeals had become infructuous. “We will dismiss the appeals and leave open the question of law”, Justice Khehar said. Counsel sought time to seek instructions and the bench posted the matter for further hearing on November 29.

Counsel Pranav Sachdeva, appearing for Association for Democratic Rights on whose petition the High Court had passed the order said both the Congress and BJP flouted the norms of the Foreign Contribution (Regulation) Act and the HC had clearly stated that the amendments will not have retrospective effect for the 1976 FCRA Act.