In a landmark judgment, Delhi High Court yesterday held major National political parties BJP and Congress guilty of taking foreign funding and violating the provisions of FCRA and directed the Ministry of Home Affairs (MHA) and Election Commission of India (ECI) to take action against the two parties within six months.
The Bench comprising Justice Pradeep Nandrajog and Justice Jayant Nath has observed that these political parties have taken donations from Vedanta Resources, registered in England and Wales, and its subsidiaries. The Bench also rejected the stand taken by Ministry of Home Affairs which said that FCRA has not been violated. The judgement draws attention to the donations made to INC and BJP for the period up to the year 2009.
Sterlite, Sesa Goa, Public and Political Awareness Trust and Vedanta The Madras Aluminium Co Ltd are all held by the same corporate entity and were found guilty. They have also received mining rights and large tracts of land from the government. It needs to be investigated whether these illegal donations are linked to these business deals.
Dow Chemical Company, which now owns Union Carbide Corporation responsible for the Bhopal Gas Tragedy, was also found guilty.
The judgement was announced on a petition filed in public interest by Mr. EAS Sarma, Former Secy, Govt of India, and Association for Democratic Reforms (ADR) in Delhi High Court in January 2013. The petitioners asserted that there is a blatant violation of the Foreign Contribution (Regulation) Act, 1976 FCRA) by the two major National political parties INC and BJP. The petitioners have welcomed the judgement.
After 10 hearings, the judgement was reserved on February 28, 2014 and it was delivered on March 28, 2014.
The allegations were based on the annual reports of Vedanta and its subsidiaries M/s Sterlite Industries India Ltd. and M/s Sesa Goa Ltd wherein they declared donations of several crores of rupees to INC and BJP.
Section 4(1)(e) of FCRA, 1976 and Section 3 of FCRA, 2010 categorically prohibit any financial contribution from any foreign source or company to a political party registered in India. Violation of the same is a serious criminal offence. Section 29(b) of the Representation of People Act, 1951 also prohibits political parties from taking donations from Government Companies and from a foreign source. Besides, Section 293A of Company Act, 1956 states that any company found to have made such a donation will be penalized three times the amount contributed to the political party, along with imprisonment of the authorizing officer of up to 3 years.
Pronouncing the judgement, the Bench observed in para 73 of the judgement “…We have no hesitation in arriving at the view that prima-facie the acts of the respondents inter-se, as highlighted in the present petition, clearly fall foul of the ban imposed under the Foreign Contribution (Regulation) Act, 1976 as the donations accepted by the political parties from Sterlite and Sesa accrue from Foreign Sources within the meaning of law.”
The court has issued two directions in para 74 of the judgement:
· The first direction would concern the donations made by State Trading Corporation of India and Metals and Minerals Corporation of India to INC in respect of the donations made to National Students Union of India (NSUI). Both MHA and ECI have been directed to investigate the matter to find out whether the same is a “stray incident and possibly a mistake or otherwise.”
· The second direction would concern the donations made to political parties by not only Sterlite and Sesa but other similarly situated companies/corporations. Both MHA and ECI have been asked to “relook and reappraise” the receipts of the political parties and identify foreign contributions received by foreign sources.
For detailed information on foreign contribution and funding received by INC and BJP during the period 2003-04 to 2011-12, refer to the ADR’s analysis in the Table below:--
Foreign funding to political parties [FY 2003-04 to 2011-12]
The Bench comprising Justice Pradeep Nandrajog and Justice Jayant Nath has observed that these political parties have taken donations from Vedanta Resources, registered in England and Wales, and its subsidiaries. The Bench also rejected the stand taken by Ministry of Home Affairs which said that FCRA has not been violated. The judgement draws attention to the donations made to INC and BJP for the period up to the year 2009.
Sterlite, Sesa Goa, Public and Political Awareness Trust and Vedanta The Madras Aluminium Co Ltd are all held by the same corporate entity and were found guilty. They have also received mining rights and large tracts of land from the government. It needs to be investigated whether these illegal donations are linked to these business deals.
Dow Chemical Company, which now owns Union Carbide Corporation responsible for the Bhopal Gas Tragedy, was also found guilty.
The judgement was announced on a petition filed in public interest by Mr. EAS Sarma, Former Secy, Govt of India, and Association for Democratic Reforms (ADR) in Delhi High Court in January 2013. The petitioners asserted that there is a blatant violation of the Foreign Contribution (Regulation) Act, 1976 FCRA) by the two major National political parties INC and BJP. The petitioners have welcomed the judgement.
After 10 hearings, the judgement was reserved on February 28, 2014 and it was delivered on March 28, 2014.
The allegations were based on the annual reports of Vedanta and its subsidiaries M/s Sterlite Industries India Ltd. and M/s Sesa Goa Ltd wherein they declared donations of several crores of rupees to INC and BJP.
Section 4(1)(e) of FCRA, 1976 and Section 3 of FCRA, 2010 categorically prohibit any financial contribution from any foreign source or company to a political party registered in India. Violation of the same is a serious criminal offence. Section 29(b) of the Representation of People Act, 1951 also prohibits political parties from taking donations from Government Companies and from a foreign source. Besides, Section 293A of Company Act, 1956 states that any company found to have made such a donation will be penalized three times the amount contributed to the political party, along with imprisonment of the authorizing officer of up to 3 years.
Pronouncing the judgement, the Bench observed in para 73 of the judgement “…We have no hesitation in arriving at the view that prima-facie the acts of the respondents inter-se, as highlighted in the present petition, clearly fall foul of the ban imposed under the Foreign Contribution (Regulation) Act, 1976 as the donations accepted by the political parties from Sterlite and Sesa accrue from Foreign Sources within the meaning of law.”
The court has issued two directions in para 74 of the judgement:
· The first direction would concern the donations made by State Trading Corporation of India and Metals and Minerals Corporation of India to INC in respect of the donations made to National Students Union of India (NSUI). Both MHA and ECI have been directed to investigate the matter to find out whether the same is a “stray incident and possibly a mistake or otherwise.”
· The second direction would concern the donations made to political parties by not only Sterlite and Sesa but other similarly situated companies/corporations. Both MHA and ECI have been asked to “relook and reappraise” the receipts of the political parties and identify foreign contributions received by foreign sources.
For detailed information on foreign contribution and funding received by INC and BJP during the period 2003-04 to 2011-12, refer to the ADR’s analysis in the Table below:--
Foreign funding to political parties [FY 2003-04 to 2011-12]
Indian National Congress:
S. No
|
Name
|
Complete Address of the Contributing Person / Company
|
Total Donation (In Rs.)
|
Amount of Contribution (In Rs.)
|
Mode of Contribution (Cheque / DD / Cash)
|
Financial Year
|
1
|
Sterlite Industries
India Ltd
|
Dhanraj Mahal 5Th Floor
Csm Road Apollo Bunder Mumbai-39
|
6,00,00,000
|
1,00,00,000
|
Cheque No-
486677,dt-27.01.2005 HDFC Bank ltd silvasa
|
2004-2005
|
Business Square,C
–Wing 2nd Floor, Andheri-Kurla Road Chakala, Andheri (East)
Mumbai-400093
|
5,00,00,000
|
Ch.No.091394/Dtd.02.04.2009
ICICI Bank, Mumbai
|
2009-2010
|
|||
2
|
Sesa Goa Limited
|
Sesa Ghar, Pottl,
Panaji, Goa
|
2,78,50,000
|
5,00,000
|
Cheque No 238460
Dtd. 31.05.2005 Canara Bank Panaji, Goa
|
2005-2006
|
Sesa Ghor ,Panji Goa
|
12,50,000
|
Canara
Bank Panaji Goa
|
2007-2008
|
|||
Sesa Ghor ,Panji Goa
|
15,00,000
|
Canara Bank Panaji
Goa
|
2007-2008
|
|||
Sesa Ghar, 20 EDC
Complex , Panjim, Goa-403001
|
30,00,000
|
Ch.No.548287/Dtd.15.04.2009Canara
Bank Panaji, Goa
|
2009-2010
|
|||
Sesa Ghar, Patto
Panaji- GOA
|
2,00,00,000
|
RTGS, ICICI Bank,
Panaji
|
2011-2012
|
|||
Sesa Ghar, Pottl,
Panaji, Goa
|
2,00,000
|
Cheque No 913411 Dtd
20.02.2006 Canara Bank Mapusa, Goa
|
2005-2006
|
|||
Sesa Ghar Patto,
Panaji Goa
|
2,00,000
|
Cheque Canara Bank
Panaji
|
2006-2007
|
|||
Sesaghar Patto
Panaji
|
5,00,000
|
Cheque HDFC
bank panaji
|
2004-2005
|
|||
Sesa Ghar Patto
Panaji
|
5,00,000
|
Cheque Canara
bank panaji
|
2004-2005
|
|||
Sesa Ghar Patto
Panaji
|
2,00,000
|
Cheque Canara
bank panaji
|
2004-2005
|
|||
3
|
Solaries Holdings
Ltd.
|
First India Place,
Tower C, Mehrauli-Gurgaon Road, Gurgaon, Haryana-122002
|
1,00,00,000
|
50,00,000
|
Ch.No.512059/Dtd.21.03.2009
Standard Chartered Bank, Narain Manzil, 23, Barakhamba Road, New Delhi-110001
|
2009-2010
|
First India Place,
Tower C, Mehrauli-Gurgaon Road, Gurgaon, Haryana-122002
|
50,00,000
|
Ch.No.512060/Dtd.21.03.2009
Standard Chartered Bank, Narain Manzil, 23, Barakhamba Road, New Delhi-110001
|
2009-2010
|
|||
4
|
Hyatt regency
|
4/11 Shanti Niketan
New Delhi
|
5,00,000
|
5,00,000
|
Cheque No-
046981,dt-04.05.2004IDBI bank K.G. marg new delhi
|
2004-2005
|
Total
|
Rs 9,83,00,000 (~Rs 9.83 crores)
|
|||||
Table:
Details of foreign funding to INC between 2003-04 and 2011-12
Bharatiya Janata Party:
S. No.
|
Name
|
Complete Address of the Contributing Person / Company
|
Total Donation (In Rs.)
|
Amount of Contribution (In Rs.)
|
Mode of Contribution (Cheque / DD / Cash)
|
Financial Year
|
1
|
Public &
Political Awareness Trust
|
1/1/2, Chnchpada,
Silvasa
|
14,50,00,000
|
5,00,00,000
|
ch. 486377HDFC
BANK,NEW DELHI
|
2003-2004
|
1/1/2, Chinchpada,
Silvasa-396230 (D & NG)
|
5,00,00,000
|
RTGS Through HDFC
Bank
|
2011-2012
|
|||
Silvasa
|
2,00,00,000
|
486381 HDFC Bank New
Delhi
|
2004-2005
|
|||
Silvasa
|
1,50,00,000
|
Ch.no. 486678,79,
HDFC bank ltd silvasa
|
2004-2005
|
|||
Dadra & Nagar
Haveli
|
50,00,000
|
Ch.no. 486378 HDFC
bank silvasa
|
2004-2005
|
|||
Padra & Nagar
Haveli
|
50,00,000
|
Ch.. 486376
HDFC BANK,SILVASA
|
2003-2004
|
|||
2
|
Vedanta The Madras
Aluminium Co Ltd
|
3,50,00,000
|
3,00,00,000
|
104791
ICICI Bank
|
2009-2010
|
|
50,00,000
|
104792
ICICI Bank
|
2009-2010
|
||||
3
|
Sesa Goa Limited
|
Sesa ghor 20 EDC
complex patto
|
1,41,50,000
|
5,00,000
|
Cheque No.
362506, Canara Bank Panaji
|
2004-2005
|
Sesa ghor 20 EDC
complex patto
|
2,00,000
|
Cheque No.
364369, Canara Bank Panaji
|
2004-2005
|
|||
Sesa.
Ghor 20 EDC Complex Pattc
|
5,00,000
|
238464 Canara Bank,
Panaji
|
2005-2006
|
|||
SESA GOA LTD. SESA
GHOR 20 EDC COMPLEX PATTO, PANAJI-GOA
|
2,00,000
|
CHEQUE NO. 913853
CANARA. BANK. PANAJI
|
2006-2007
|
|||
20 EDC Complex
Panaji Goa
|
15,00,000
|
Cheque No.-
893723 Canara Bank Panaji
|
2007-2008
|
|||
20 EDC Compiex Patto
Panaji Goa
|
12,50,000
|
Chaque No 541344
Canara Bank Panaji
|
2007-2008
|
|||
20 E D Complex Patto
Panji, Goa
|
50,00,000
|
202831
ICICI Bank
|
2009-2010
|
|||
P O BOX 125,
SESA GHOR 20 EDC Complex Patto , Panji Goa – 403001
|
10,00,000
|
22753
ICICI Bank
|
2009-2010
|
|||
15,00,000
|
041450 ICCI Bank
Ltd.Panji
|
2011-2012
|
||||
P.O.Box 125 ,Sesa
Ghor 20 EDC Complex Patto Panaji –Goa 403001
|
25,00,000
|
042277 ICICI Bank
Ltd.
|
2011-2012
|
|||
4
|
DOW CHEMICAL INT, P.
LTD.
|
CORPORATE PARK. UNIT
NO 1, V.N. PURAV MARS MUMBAI
|
1,00,000
|
1,00,000
|
CHEQUE NO. 9189 CITY
BANK. MUMBAI
|
2006-2007
|
Total
|
19,42,50,000 (~Rs 19.42 crores)
|
|||||
Table: Details of Foreign Funding of BJP between 2003-04 and 2011-12 from all
over India
