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Cong asks SC to stay order on foreign fund case

Last Updated 23 July 2014, 20:07 IST

The Congress on Wednesday filed a petition in the Supreme Court challenging a March 28 order of the Delhi High Court which held the party along with the BJP prima facie guilty of violating the provisions of the Foreign Contribution (Regulation) Act (FCRA).

The two national parties are accused of receiving illegal donations from subsidiaries of UK-based Vedanta Resources.

While seeking immediate stay of the high court order, the party contended that there was no concealment or suppression of such contribution from its side as receipt was shown in the returns made to the Election Commission.

The high court had directed the Centre and the Election Commission (EC) to take appropriate action against both the parties within six months.

The party claimed that Vedanta was owned by an Indian citizen, Anil Aggarwal, and its subsidiaries were incorporated in the country, so “they are not foreign sources”.

“The prohibition to make any contribution to a candidate or a political party or office bearers thereof relates to foreign citizens and Indian entities, if more than one half of the nominal value of share capital of such entities are held either singly or in the aggregate by citizens of a foreign country,” the petition said.

The party also claimed the High Court had erred in holding that Vedanta was a foreign company as per the Companies Act and therefore, the Anil Aggarwal-owned company and its subsidiaries, Sterlite and Sesa, were foreign sources as per FCRA.

The HC’s verdict had come on a petition filed by a NGO Association for Democratic Reforms and E A S Sarma, a former secretary of the Government of India, who had alleged that the two political parties violated the Representation of Peoples’ Act and FCRA.

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(Published 23 July 2014, 20:07 IST)

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