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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through money bill to legalise foreign funding to political parties, the government has once again sought to amend the repealed Foreign Contribution Regulation Act (FCRA), 1976, retrospectively through Finance Bill 2018.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 However, it only made valid the foreign donations received after 2010, the year when the 1976 Act was repealed and replaced with FCRA 2010.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 effect from the 5th August, 1976 the date of commencement of the FCRA, 1976, which was repealed and re-enacted as the FCRA, 2010.”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

Assam makes Muslim marriage registration compulsory under new rules

Assam has approved rules for compulsory registration of Muslim marriages, with couples able to register through government marriage registrars.

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The Assam Cabinet has approved the Assam Muslim Marriage Registration (Compulsory) Rules, 2026, establishing the procedure for mandatory registration of Muslim marriages in the state.

The rules operationalise the Assam Compulsory Registration of Muslim Marriages and Divorces Act, 2024, which replaced the earlier Assam Muslim Marriages and Divorces Registration Act, 1935.

Who will register Muslim marriages in Assam?

Chief Minister Himanta Biswa Sarma said Muslim couples will now be able to register their marriages with government marriage registrars.

The government had earlier decided that kazis would not register Muslim marriages under the new system, but there was uncertainty over who would carry out the registration. The newly approved rules establish the registration mechanism through marriage registrars.

Sarma said that if the number of applications becomes large, the government could give marriage-registration powers to officers at the panchayat level so that applicants do not face difficulties.

What does the 2024 law say?

The 2024 Act made the registration of Muslim marriages and divorces with the government mandatory. It also prohibits registration of marriages that do not meet the legally prescribed minimum age requirements.

The law specifies the minimum marriage age as 18 years for females and 21 years for males.

The legislation was introduced by the Assam government with the stated objective of curbing child marriage and ending the earlier kazi-based registration system.

Under the previous 1935 law, marriage registration was conducted through kazis and was not compulsory. The earlier system also allowed registration involving minors in certain circumstances, while the new law does not permit such registration.

Registration timeline and penalties

The 2024 legislation provides that Muslim marriages should be registered within 30 days of the marriage. It also provides for registration of divorces within one month of their occurrence.

The law also contains penalties for violations. Producing fake or forged certificates can attract imprisonment of up to two years, a fine of up to Rs. 10,000, or both, along with action under relevant provisions of the Bharatiya Nyaya Sanhita, 2023.

Registering a marriage in violation of the law can attract imprisonment of up to one year and a fine of up to Rs. 50,000.

The Assam Cabinet’s approval of the 2026 rules provides the administrative framework for implementing the compulsory registration system.

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India News

Trump-Xi Summit: Trade, Taiwan and AI among key takeaways

Trade, Taiwan, artificial intelligence and strategic rivalry were among the key issues highlighted during Donald Trump’s summit with Xi Jinping in Washington.

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Trump-Xi Summit

US President Donald Trump and Chinese President Xi Jinping met at the White House amid discussions on trade, artificial intelligence and the broader strategic relationship between the United States and China.

The summit came as Washington and Beijing continued to navigate disagreements over tariffs, Chinese purchases, rare-earth supplies, technology restrictions and Taiwan.

Here are five key takeaways from the Trump-Xi summit.

Trade truce gets an extension

The United States and China agreed to extend their trade truce by two months, giving both sides additional time for negotiations.

US Treasury Secretary Scott Bessent said the extension would provide Washington and Beijing more time to work on economic issues. However, several major questions remain part of the negotiations, including tariffs, Chinese purchases, rare-earth supplies and technology restrictions.

Bessent said China was meeting its earlier commitment to buy 25 million tonnes of US soybeans but was behind its pledge to purchase $17 billion worth of other agricultural goods.

US officials have also said that Chinese rare-earth deliveries were falling short.

Taiwan remains a major point of tension

Taiwan was another important issue during the discussions.

Xi Jinping pressed Trump on Taiwan and urged the United States to handle the issue with “prudence”, according to China’s official news agency. Its English-language service also said Xi hoped Washington would oppose Taiwanese independence.

The report noted that the US has traditionally said it does not support Taiwanese independence, while avoiding an explicit statement that it opposes it.

There was no immediate White House readout of the exchange on Taiwan.

Trump and Xi differ on AI

Artificial intelligence was another area where the two leaders expressed different positions.

Trump has said he wants to avoid new AI guardrails and instead rely on the US Department of Justice. He has also maintained that China shares this approach.

Xi, however, said the United States and China have both the capability and responsibility to develop and manage AI for good.

He said AI development should remain under human control and serve people’s well-being.

The contrasting positions underline the importance of AI and technology in the broader US-China relationship.

Strategic rivalry remains a concern

Xi also referred to the “Thucydides Trap”, a theory associated with the risk of conflict between a rising power and an established one.

He argued that competition between the United States and China should be about catching up rather than a contest in which one side must defeat the other.

Xi said the risks could be overcome and called for regular military dialogue and stronger mechanisms to prevent crises.

Trump, meanwhile, highlighted areas where the two countries could cooperate, referring to their shared wartime history and common interests.

Summit also featured elaborate ceremony

The White House visit was accompanied by an elaborate display of ceremony.

The programme included military performances, fighter jets and bombers flying overhead, as well as the recently redesigned South Lawn and a large helipad bearing the presidential seal.

The highly publicised setting contrasted with the unresolved differences between Washington and Beijing on trade, Taiwan, technology and strategic issues.

The summit therefore highlighted both the effort to maintain dialogue between the two powers and the significant issues that remain unresolved.

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 Akhilesh Yadav launches SP’s 2027 UP poll campaign from Rahul Gandhi’s seat

Akhilesh Yadav launched the Samajwadi Party’s 2027 Uttar Pradesh Assembly election campaign from Rae Bareli, represented by Rahul Gandhi in the Lok Sabha.

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Akhilesh Yadav

Samajwadi Party chief Akhilesh Yadav has formally begun the party’s campaign for the 2027 Uttar Pradesh Assembly elections, launching the outreach from Rae Bareli, the Lok Sabha constituency represented by Congress leader Rahul Gandhi.

Yadav travelled through the area on the party’s newly launched PDA Rath before addressing a public meeting. The campaign vehicle carries the Samajwadi Party’s PDA messaging, referring to its focus on backward classes, Dalits and minorities.

Akhilesh Yadav discusses alliance with Congress

During his Rae Bareli visit, Yadav said the Samajwadi Party would contest the 2027 election as part of an alliance and indicated that seat-sharing would be decided on the basis of winnability.

He said the party would give a seat to whichever alliance partner is considered capable of winning it. The remarks come against the backdrop of the SP and Congress having contested the 2024 Lok Sabha election together in Uttar Pradesh.

Rae Bareli has particular political significance for the Congress as Rahul Gandhi is its sitting Lok Sabha MP. Yadav’s decision to begin the campaign from the constituency therefore placed the SP’s alliance with the Congress in focus.

PDA Rath becomes centrepiece of campaign

The PDA Rath was rolled out as part of the SP’s mobilisation ahead of the 2027 Assembly election. The vehicle prominently carries the party’s PDA messaging, with PDA standing for Pichhde, Dalit and Alpsankhyak.

The campaign is aimed at taking the SP’s social-justice messaging to voters across Uttar Pradesh as the party prepares for the Assembly election.

During the programme, Yadav also attacked the BJP and raised issues including the Election Commission and what he described as the alleged misuse of election machinery. These are political allegations made by the SP chief and should be understood as such.

BJP reacts to Akhilesh Yadav’s campaign

The launch of the PDA Rath comes as political activity intensifies in Uttar Pradesh ahead of the 2027 Assembly election.

The BJP has responded to Yadav’s campaign and his political messaging, while the SP has continued to focus its outreach on the PDA social coalition and its alliance strategy with the Congress.

The 2027 contest is still ahead, with parties using the period before the election to strengthen their organisational networks, public outreach and alliance arrangements.

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