New Delhi : The Supreme Court Friday issued notice to the central government and the Election Commission on a BJP plea challenging the Delhi High Court order that the contribution to its coffers by the Indian subsidiary of the UK-based Vedanta Resources amounted to foreign contribution.
An apex court bench headed by Chief Justice H.L. Dattu while issuing a notice on the Bharatiya Janata Party’s (BJP) plea, tagged it with an earlier Congress plea on the same issue.
The Delhi High Court had by its March 28 order found both the Congress and the BJP prima facie guilty of violating the foreign contribution statute and had asked the Central government and the Election Commission to initiate appropriate action against them within six months.
The apex court Aug 22 had issued notice to the central government and the Election Commission on a petition by Congress challenging a Delhi High Court direction to investigate the Congress party’s foreign funding.
The High Court order had come in response to a PIL filed by the Association for Democratic Reforms contending that the UK-based Vedanta Resources and its subsidiary companies in India including Sterlite Industries, Sesa Goa and Malco had allegedly donated several crores of rupees to major political parties like the Congress and the BJP.
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.”
“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”, the High Court had said.
The FCRA prohibits any financial contribution from any foreign source or company to a political party registered in India.