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SC Notice Doesnt Deter Govt, Uses Fin Bill Again To Amend Law To Allow Foreign Funding To Pol Parties

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SC Notice Doesnt Deter Govt, Uses Fin Bill Again To Amend Law To Allow Foreign Funding To Pol Parties

Already facing a Supreme Court notice on petition challenging amendments in law through money bill to legalise foreign funding to political parties, the government has once again sought to amend the repealed Foreign Contribution Regulation Act (FCRA), 1976, retrospectively through Finance Bill 2018.

This is seen as an attempt to wriggle out of legal wrangles that the BJP and Congress have got into over receiving foreign funds

The Delhi High Court had held the two parties guilty of receiving foreign funds from two subsidiaries of Vedanta, a UK-based company and issued contempt notice to the Ministry of Home Affairs (MHA) for not complying with its order.

Political parties are barred from receiving foreign funds under the Representation of the People Act and the FCRA. Facing a court case, in 2016, the government changed the definition of ‘foreign companies’ by amending the FCRA. This was done by moving the amendment as a Finance Bill, which cannot be blocked by the Rajya Sabha.

What is more, the amendment was made effective retrospectively. However, it only made valid the foreign donations received after 2010, the year when the 1976 Act was repealed and replaced with FCRA 2010.

Both BJP and Congress were allegedly receiving foreign funds for political activities from Vedanta from 2004 to 2012.

After a Delhi High Court notice, in an attempt to obtain relief for the two parties, the government has again proposed an amendment through the Finance Bill, 2018. It says, “Clause 217 of the Bill seeks to amend Section 236 of the Finance Act, 2016 which relates to amendment to sub-clause (vi) of clause (j) of sub-section (1) of Section 2 of the Foreign Contribution (Regulation) Act, 2010 …. effect from the 5th August, 1976 the date of commencement of the FCRA, 1976, which was repealed and re-enacted as the FCRA, 2010.”

In Part XIX of the list of amendments in the 2018 Finance Bill, the “Amendment to the Finance Act, 2016”, entry number 217, reads: “In Finance Act, 2016, in section 236, in the opening paragraph, for the words, figures and letter ‘the 26th September, 2010’, the words, figures and letter ‘the 5th August, 1976’ shall be substituted.”

Further, The Indian Express reported quoting an unnamed official, “After Foreign Direct Investment (FDI) norms were relaxed, there were anomalies regarding the definition of foreign companies under the FCRA which were not amended. After seeking legal opinion, it was decided to amend the 1976 Act in the 2018 finance Bill.”

The FCRA of 1976 defined a foreign company as one with over 50 per cent foreign ownership, thereby disallowing the companies owned by foreign nationals or Indian-origin people based abroad and with foreign citizenship to fund and influence political parties in India.

This was inconsistent with the view of the Finance and the Commerce Ministries, which treated companies based in India and having Indian directors and employees as Indian subsidiaries.

Brief background:

The earlier retrospective amendment in 2016 did not apply to donations prior to 2010 while the Delhi High Court had in 2014 held that the donations were illegal. On March 28, 2014, the high court had ordered the Election Commission and the ministry of home affairs (MHA) to look into the accounts of parties and take action within six months.

The matter dragged on. The Association for Democratic Reforms (ADR), the Delhi High Court moved a contempt petition in March 2017 against the Ministry of Home Affairs (MHA) pointing out that the directives of the High Court against the two political parties which received foreign funds were not complied with.

In October, 2017, the Delhi High Court bench of acting Chief Justice Gita Mittal and Justice C Hari Shankar gave further six months to MHA for complying with its 2014 judgment, which had found both parties flouting the FCRA norms by accepting donations from Indian subsidiaries of UK- based Vedanta Resources.

The MHA had sought extension of time till March 31, 2018 to comply with the court’s directions saying that the records were “voluminous in nature and a few decades old” hence it required more time to “collect, collate and then analyse them”.

Contesting the ADR’s contention that even after the lapse of three years the government remained in noncompliance with the judgment of the Delhi HC, the Centre argued that the ministry of corporate affairs was examining the share-holding patterns of the companies which have extended donations to the political parties.

After hearing the arguments the bench said it will give one last opportunity to the government and extended the time period by six months.

By the time six months were to be over, the Centre brought in the latest amendment.

ADR founder Jagdeep S Chhokar told India Legal/APN Live: “The contempt petition is still pending in the HC. Government lawyers have been seeking one adjournment after another, because they were trying to buy time to take care of the problem.”

“They (the government) seem to have come up with the solution: “make the amendment effective since 1976″. But the legal lacuna is that the 1976 Act was specifically repealed in 2010,” said Chhokar.

Calling it “patently illegal”, Chhokar said, “Question is how does one amend an Act that is dead. You can amend a law that is force but you can’t amend a law that does not exist.”

“In fact, if it is taken to its logical end, what they have done in the Finance Bill might land them in further trouble,” he added.

The Supreme Court in October 2017 had issued notice to the Centre on a plea by ADR challenging amendments to various statutes introduced through The Finance Act, 2017, and The Finance Act, 2016, both of which were passed as money bills, allegedly leading to illicit and foreign funding of political parties.

The statutes amended include the Income Tax Act, 1961, Representation of People’s Act, 1951, Reserve Bank of India Act, 1934, Foreign Contribution (Regulation) Act, 2010 (FCRA) and Companies Act, 2013.

The government brought in the latest amendment through the same route of Finance Bill even after receiving the Supreme Court notice on similar moves earlier and the case is still being heard.

There are at least 25 instances of the Congress and the BJP receiving funding from the ‘Indian’ subsidiaries of various foreign companies before 2010.  As the table below, compiled by ADR, shows, the parties have received funding in the range of Rs 5 lakh to Rs 5 crore from the Indian subsidiaries of Vedanta, Dow Chemicals and Switzerland-based Mundipharma over the course of six years from 2004 to 2010.

Company Amount (In Rupees) Year of Donation Political Party Parent Company
Hyatt Regency 5,00,000 FY 04-05 INC American Origin Company
Sterlite Industries Ltd 100,00,000 FY 04-05 INC Vedanta
Sesa Goa Ltd 5,00,000 FY 04-05 INC Vedanta
Sesa Goa Ltd 5,00,000 FY 04-05 INC Vedanta
Sesa Goa Ltd 2,00,000 FY 04-05 INC Vedanta
Adani Wilmer Ltd 2,50,000 FY 05-06 INC Adani Wilmar Limited is a 50:50 joint venture between the Adani Group and Wilmar International Limited
Sesa Goa Ltd 5,00,000 FY 05-06 INC Vedanta
Sesa Goa Ltd 5,00,000 FY 05-06 INC Vedanta
Sesa Goa Ltd 2,00,000 FY 06-07 INC Vedanta
Sesa Goa Ltd 15,00,000 FY 07-08 INC Vedanta
Adani Wilmer Ltd 5,000,000 FY 08-09 INC Adani – Wilmer JV
Solaries Holding Ltd 5,000,000 FY 09-10 INC Vedanta
Solaries Holding Ltd 5,000,000 FY 09-10 INC Vedanta
Sterlite Industries (India) Ltd. 50,000,000 FY 09-10 INC Vedanta
Sesa Goa Ltd 30,00,000 FY 09-10 INC Vedanta
Sesa Goa Ltd Sesa Ghor 5,00,000 FY 05-06 BJP Vedanta
Win Medicare (P) Ltd 25,00,000 FY 05-06 BJP Swiss origin company
Sesa Goa Ltd 2,00,000 FY 06-07 BJP Vedanta
Dow Chemical Int (P) Ltd 1,00,000 FY 06-07 BJP Union Carbide acquirer
Sesa Goa Ltd 15,00,000 FY 07-08 BJP Vedanta
Sesa Goa Ltd 12,50,000 FY 07-08 BJP Vedanta
Adani Wilmar Ltd 50,00,000 FY 08-09 BJP Vedanta
Vedanta The Madras Aluminum Ltd 30,000,000 FY 09-10 BJP Vedanta
Vedanta The Madras Aluminum Ltd 50,00,000 FY 09-10 BJP Vedanta
Sesa Goa Ltd 50,00,000 FY 09-10 BJP Vedanta
Win Medicare (P) Ltd 25,00,000 FY 09-10 BJP Swiss origin company
Sesa Goa Ltd 10,00,000 FY 09-10 BJP Vedanta

India News

Heavy rain disrupts flights, triggers flood alerts as monsoon intensifies across India

Heavy monsoon rainfall disrupted flights in Mumbai, prompted an orange alert in Delhi and led the IMD to issue heavy rain warnings for several states as a Bay of Bengal depression intensified.

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Monsoon

Heavy monsoon rainfall continued to affect several parts of the country on Sunday and Monday, disrupting air travel, inundating roads and prompting weather alerts in multiple states. The India Meteorological Department (IMD) has warned that a depression over the Bay of Bengal is likely to bring widespread heavy to very heavy rainfall across eastern India over the next 24 hours.

Mumbai bears the brunt of heavy rainfall

Mumbai experienced one of the most severe impacts of the ongoing monsoon spell after heavy overnight rain and strong winds temporarily halted runway operations at Chhatrapati Shivaji Maharaj International Airport for around an hour.

The disruption led to the cancellation of four IndiGo flights, while 13 incoming flights were diverted before operations gradually returned to normal. Flight tracking data also showed significant delays, with nearly 90 per cent of departing flights delayed by more than an hour on average and almost half of arriving flights running behind schedule.

The IMD maintained a red alert for Mumbai after several areas recorded more than 200 mm of rainfall within 24 hours, with some locations receiving close to 300 mm.

IMD forecasts widespread heavy rainfall

According to the IMD, a well-marked low-pressure area over the Bay of Bengal has intensified into a depression and is expected to cross the north Odisha coast within the next 24 hours.

The weather system is expected to bring widespread heavy to very heavy rainfall across eastern India, while several other regions continue to remain under rainfall alerts due to active monsoon conditions.

Delhi under orange alert after hottest July day in two years

The IMD has issued an orange alert for Delhi, forecasting a generally cloudy sky with moderate rainfall across the national capital.

The alert comes after Delhi recorded its hottest July day in two years on Sunday, with the maximum temperature reaching 38.6 degrees Celsius. Despite the heat, moderate showers provided temporary relief in several areas of Delhi-NCR.

Chhatarpur recorded the highest rainfall in the region, receiving 49 mm of rain by Sunday afternoon. However, waterlogging was reported in parts of the locality, affecting commuters and residents.

Heavy rain forecast for Tamil Nadu

The IMD has also forecast heavy rainfall at isolated locations in Coimbatore and the Nilgiris on Monday.

According to the Regional Meteorological Centre in Chennai, multiple weather systems, including a trough extending from south Gujarat to Kerala and the depression over the Bay of Bengal, are expected to support widespread rainfall across parts of Tamil Nadu. Other districts along the Western Ghats are also likely to receive moderate rainfall accompanied by gusty winds.

Rain-related incidents reported in Maharashtra

Heavy rainfall also led to several rain-related incidents in Maharashtra’s Thane and Palghar districts.

A 17-year-old boy drowned in the swollen Kamvari River in Bhiwandi, while two people were injured after part of a second-floor balcony collapsed in Navi Mumbai’s Vashi area. Authorities said continuous rainfall also triggered structural collapses and tree-fall incidents in several locations.

With active monsoon conditions continuing across large parts of the country, authorities have urged residents in affected regions to remain cautious and follow official weather advisories.

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Ram Mandir Trust to hold key meeting today amid donation theft investigation

The Shri Ram Janmabhoomi Teerth Kshetra Trust is meeting in Ayodhya to deliberate on key resignations, review the ongoing donation embezzlement investigation and discuss the temple’s future administrative structure.

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The Shri Ram Janmabhoomi Teerth Kshetra Trust is scheduled to hold an important meeting on Monday in Ayodhya as investigations into the alleged embezzlement of temple donations continue. The deliberations are expected to focus on the resignations submitted by the Trust’s general secretary Champat Rai and trustee Anil Mishra, along with other administrative matters.

The meeting will be held at Mani Ram Chhawni, the monastery of Trust president Nritya Gopal Das. It will be the Trust’s first formal gathering since allegations related to the alleged theft of donations came to light.

Trust treasurer Govind Dev Giri has invited all regular and ex-officio members to participate in the meeting. The ex-officio members include Union Home Ministry Additional Secretary Prashant Lokhande, Uttar Pradesh Chief Minister’s Additional Chief Secretary Sanjay Prasad, Ayodhya District Magistrate Shashank Tripathi and former Principal Secretary to the Prime Minister Nripendra Mishra.

According to sources, Trust president Nritya Gopal Das is expected to attend the meeting after recently being discharged from hospital. The 89-year-old had been admitted in Lucknow on June 29 due to a urinary tract infection and breathing-related complications before being discharged on Friday.

Senior trustee K Parasaran, who is unable to travel because of age-related health issues, is likely to participate through video conferencing, according to sources.

Administrative changes may be discussed

The Trust is expected to consider the resignations of Champat Rai and Anil Mishra, who stepped down after their names surfaced in connection with the donation theft controversy. If the resignations are accepted, discussions may also take place on restructuring the Trust’s administrative setup.

The role of special invitee Gopal Rao is also likely to come up during the meeting. Besides leadership issues, trustees are expected to receive a briefing on the interim findings of the Special Investigation Team (SIT), which is conducting an administrative inquiry into the alleged embezzlement case.

The Trust may also review its future management framework, including the possible appointment of a chief executive officer to oversee the administration of the Ram Temple.

Financial statements to be placed before trustees

Sources said the meeting agenda also includes the presentation of the unaudited income and expenditure statement, balance sheet and other financial documents for the 2025-26 financial year for approval.

Speaking to reporters, special invitee Gopal Rao said all 14 trustees had been invited for the meeting and expressed hope that every member would attend. He added that Trust treasurer Govind Dev Giri had informed all members about the scheduled deliberations.

At present, the Trust has 11 regular members, including president Nritya Gopal Das, Vasudevanand Saraswati, Vishwaprasannatirth, Parmanand Giri, Govind Dev Giri, Krishna Mohan, Dinendra Das and K Parasaran.

Following the resignations of Champat Rai and Anil Mishra, along with the recent demise of trustee Bimlendra Mohan Pratap Mishra, the Trust currently has no vice president to chair meetings in the absence of the president.

Two parallel investigations underway

The meeting comes while two separate investigations into the alleged donation embezzlement are ongoing. The Special Investigation Team is carrying out an administrative probe, and its tenure has been extended until the end of July.

Meanwhile, the police are conducting a criminal investigation after an FIR was registered on the Trust’s complaint.

According to sources, statements of Champat Rai, Anil Mishra and special invitee Gopal Rao have been recorded by both the SIT and the police. However, no FIR has been registered against any of the three Trust functionaries so far.

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PM Modi says India managed Hormuz crisis with minimal impact on citizens through energy diversification

Prime Minister Narendra Modi said India successfully navigated the Hormuz crisis by expanding energy imports, reducing the burden of rising fuel prices on citizens and strengthening the country’s refining capacity while inaugurating Rajasthan’s first integrated refinery.

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PM Modi

Prime Minister Narendra Modi on Saturday said India successfully managed one of the world’s most challenging energy crises by expanding its energy sourcing, strengthening diplomatic partnerships and shielding citizens from the impact of rising global fuel prices.

Addressing a public gathering after inaugurating the country’s first greenfield integrated refinery-cum-petrochemical complex in Pachpadra, Rajasthan’s Balotra district, the Prime Minister said India adopted proactive measures during the recent Middle East crisis that helped maintain energy security despite global uncertainties.

According to PM Modi, India significantly diversified its energy imports as tensions disrupted global fuel markets.

“When the crisis began, India was importing energy from around 25 to 26 countries. During the crisis, we expanded imports to more than 40 countries,” he said, crediting India’s diplomatic outreach for ensuring uninterrupted supplies.

The Prime Minister also highlighted the financial measures taken by the government to cushion consumers from soaring international crude oil prices. He said public sector oil companies absorbed losses exceeding Rs. 75,000 crore between April and June while the Centre reduced excise duty on petrol and diesel by Rs. 10 per litre to prevent a steep rise in fuel prices for consumers.

PM Modi added that despite attempts by some groups to spread rumours and create panic during the crisis, the government’s efforts ensured stability.

He said those who expected India to struggle during the crisis had been proven wrong as the country successfully overcame the challenge.

India strengthening refining capacity

Speaking about India’s energy infrastructure, the Prime Minister said the country has become the world’s fourth-largest refining hub and continues to expand its refining capabilities to meet future energy demand.

He also said the government’s long-term planning helped India deal with disruptions in fuel and fertiliser supplies triggered by the conflict involving Iran and the US-Israel alliance.

Pachpadra refinery inaugurated in Rajasthan

During the visit, PM Modi inaugurated India’s first greenfield integrated refinery-cum-petrochemical complex at Pachpadra, marking Rajasthan’s first refinery project. He launched the facility by remotely activating the project after inspecting the refinery complex.

The Prime Minister also laid the foundation stone for several development projects in the state.

Highlighting the government’s approach towards infrastructure development, PM Modi said the BJP governments focus not only on announcing projects but also on ensuring their timely completion.

He also remarked that work on the Pachpadra refinery had remained largely stalled during the Congress government’s tenure in Rajasthan between 2018 and 2023 before gaining momentum again.

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