Govt not yet decided on applying FCRA to Congress

The central government has not taken any final decision on the applicability of the Foreign Contribution Regulation Act on the Rs 37.5 million donations received by the Congress party between 1993 and 1995 and the law ministry's statement was just a view on the subject, the Delhi high court was told on Tuesday.

Additional Solicitor General of India Abhishek Manu Singhvi submitted before the division bench consisting of Justices Mahinder Narain and S K Mahajan that "no final decision has yet been taken on the subject and the statement of the law ministry was just a view and we were still trying with the countries concerned and the Enforcement Directorate to get details about the donations made to the Congress."

The donations were allegedly received from three 'fake' corporations -- Decode, Doira and Demonian -- when Sitaram Kesri was the party treasurer. The companies are reported to have been based in Trinidad, Tobago, and Singapore.

The petitioner's counsel stated in the court that the law ministry has made a statement that the FCRA, 1976, was not applicable on the donations received by the Congress. However, Singhvi countered the argument saying that investigations as still on in the matter.

The ASG said the government was in touch with the governments of West Indies and Singapore from where it was trying to collect the details regarding the donations made. The government has also asked the ED to enquire about the details of the donations received within the country and abroad.

The government on Tuesday filed an affidavit stating the steps and actions taken by them in the case. The court adjourned the matter to July 31 for further hearing.

The court is hearing a public interest petition filed by Patna-based freelance journalist Madhuresh Kumar seeking prosecution of Congress president Sitaram Kesri and other party office-bearers during the period when the donations were allegedly received for violating FCRA.

In his petition Kumar stated that Kesri received donations from foreign countries during his tenure as the Congress treasurer in violation of certain provisions of the FCRA which barred a party from receiving any sort of foreign contribution.

The petitioner has sought prosecution of Kesri and other Congress leaders on the ground that the wilful non-application of the penal provisions of FCRA against the Congress and its officials -- with regard to the foreign contribution of Rs 37.5 million without the prior sanction of the central government -- was a clear violation of Article 14 of the Constitution.

He alleged that the party had received the sum through eight bank drafts -- two each in Kesri's name (then the party treasurer) and four in the name of the Congress party.

In its income tax returns, the Congress had recorded the sum. Income tax officials told the party that if it wanted to avail of a tax rebate, it should identify those who had donated more than Rs 10,000 or otherwise face a penalty of remitting five times more than the total amount.

After the Congress failed to name the donors, the IT department imposed a penalty of about Rs 250 million.

UNI

EARLIER REPORT:

Enforcement Directorate to question Antony, Kesri