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CBI to probe FCRA violations by Kesri, Rao

In a significant move, the home ministry has handed over to the Central Bureau of Investigation the inquiry into the Foreign Contribution Regulation Act violation case against former Congress presidents Sitaram Kesri and P V Narasimha Rao and their party for receiving foreign donations of Rs 37.5 million during 1993-94.

Government officials today said the competent authority in the ministry of home affairs had decided that the CBI should commence investigation as contemplated by Section 28 of the FRCA, 1976.

The officials said the agency had been asked to probe particularly with reference to the question whether the persons holding the shares in the four donor companies -- Dominian Trading Limited, Decor Trading Limited, Diera Trading Limited and Berkley Business Corporation -- were non-resident Indians as claimed by them.

''Accordingly, the CBI has been directed and further instructed to communicate the results of the investigation to the ministry of home affairs at an early date,'' they said.

A public interest petition was filed by Patna-based journalist Madhuresh Kumar through his counsel Prashant Bhushan in the Delhi high court seeking the prosecution of Kesri, Rao and all the office-bearers of the Congress party who held office then for alleged FCRA violations.

The officials said after the orders were passed by the high court on April 13, the home ministry's FCRA division received certain documents which prima facie appear to have been sent on behalf of the donor companies.

The senders were M/s Island Resources Limited (international offshore company incorporations), National House, Santon, Isle of Man, in respect of three donor companies -- Dominian, Decor and Diera -- and Drs M S Setiawan and Rekan, registered public accountants, accountancy, management, tax consultants, Jl Perintis Kemerdekaan, Komplex Pertokoan Pulo Mas Blok ix/ii in respect of Berkeley Business Corporation.

After the receipt of these documents and legal opinion, the competent authority in the ministry decided that the CBI should probe the case, the officials added.

The court had on April 13 directed the ministry to place on record the memorandum of association, articles of association, and the share-holding pattern of the four foreign financial firms which donated Rs 37.5 million to the Congress party during 1993-94 in alleged violation of the FCRA.

A division bench of the high court was unsatisfied with the central government's actions in the case where the Congress was alleged to have received the amount through its former presidents Kesri (who was then treasurer responsible for managing all the financial affairs of the party) and Rao.

Expressing its annoyance, the division bench, comprising Acting Chief Justice Mahinder Narain and Justice S K Mahajan, in its order said that even after repeated directions, ''the documents have not been placed yet.''

''We have been asking for the papers for the last eight months, but it seems that the government was not serious in getting the matter probed. Please state before us whether you are interested in investigating the matter,'' the bench observed while reminding the central government counsel of the several court directions in this respect.

UNI

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