EC hands tied, can't act against FCRA violators

BJP, Congress accused of taking foreign funds from Vedanta

 Despite the Delhi High Court direction to the Election Commission (EC) to act against the BJP and Congress for receiving foreign funds in violations of provisions of Foreign Contribution (Regulation) Act (FCRA), the poll panel’s hands are tied as it does not have the power to take action against the guilty.

Though Section 28 (B) of the Representation of the People Act, 1951, says no political party shall be eligible to accept any contribution from any foreign source defined under clause (e) of section 2 of the Foreign Contribution (Regulation) Act, 1976, the act does not give any power to the EC to take action against guilty parties or candidates if they violated this provision.

“As there is no power with the EC under the Representation of the People Act,1951, to take action against guilty persons or party for violating foreign contribution rules, it is the duty of the government to take action,” sources in the poll panel told Deccan Herald, adding that “the government can empower the EC by amending the act”.

On the Delhi High Court order, the sources said “the EC is studying the judgment and is likely to issue show-cause notices to the BJP and Congress regarding their alleged violations of provisions of the FCRA.”

The Delhi High Court last week asked the Ministry of Home Affairs and the EC to act against the two political parties for accepting foreign funds from Vedanta group’s subsidiaries-Sterlite Industries and Sesa Goa.

“Prima facie the acts of the respondents (Congress and BJP) inter se, clearly fall foul of the ban imposed under the FCRA as the donations accepted by the political parties from Sterlite and Sesa accrue from ‘foreign sources’ within the meaning of the law,” the bench ruled on hearing a PIL filed by Association for Democratic Reforms.

The court held that Vedanta is a foreign company within the meaning of the Companies Act, 1956, and therefore, the Anil Agarwal-owned company and its subsidiaries, Sterlite and Sesa, are foreign sources as per FCRA.

Interestingly, despite the EC having written to the MHA in 2012 asking its foreigners’ division to probe the alleged violation of FCRA by the Congress and BJP on receiving donations of about Rs 5 crore each from Sterlite Industries and Sesa Goa, the ministry has not replied so far.