In a significant development, the Delhi High Court yesterday issued show cause notice to Congress president Sitaram Kesri on the allegation that he as treasurer of the party had received Rs three crore foreign contribution from Germany in violation of the Foreign Contribution Regulation Act (FCRA).
A public interest petition, by a free-lance journalist Madhuresh, alleged that authorities were not doing anything on this matter as Kesri had withdrawn the Congress support to the Deve Gowda government on March 30, the day when the former premier was to discuss the income tax and FCRA related matters with him.
A division bench comprising acting chief justice, Justice Mahinder Narain and Justice S K Mahajan also issued notice to ministry of home affairs and Central Board of Direct Taxes (CBDT) and asked the respondents to file their replies by May 20, the next date of hearing. Petitioners counsel, Prashant Bhusan, told the court that the Union home ministry was yet to serve notice on Kesri for violating FCRA even after having authentic proof.
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Counsel for the CBDT, R D Jolly, admitted in the court that the said FCRA violation was detected by the authorities and confirmed that Rs three crore was received by the Congress party as foreign contribution. The petition alleged that Kesri met the then Prime Minister H D Deve Gowda, on March 13, 1997, and requested him to drop the case under FCRA, which totally prohibits political partes from receiving any foreign contribution of any nature.
Bhusan said the Act provides for a punishment of imprisonment upto five years or fine or both if any one was found violating the Act. The petition said Kesri reportedly told Deve Gowda that at the relevant time (time of receiving the foreign contribution), A K Antony was the temporary treasurer of the Congress party as he was not in India.
Gowda, the petition said, talked to Kesri over telephone on March 29 and requested for an appointment at the earliest to discuss income tax and FCRA matters and Kesri told him to come at 1400 hrs on March 30.
However, Kesri went to the President on March 30 at 1220 hrs and delivered a letter declaring withdrawal of support to the United Front government.
The petition sought a direction from the court to the home ministry as well as the CBDT to prosecute Kesri and other concerned officials of the Congress party for alleged violation of FCRA. The petition also mentioned that on April 4, 1997, Antony, who was earlier held responsible by Kesri for receipt of foreign currency donation, challenged the MLAs in the Kerala Assembly to prove his involvemnet in the Rs three crore foreign donation scandal and declared himself innocent.
It may be recalled that the income tax department, after verifying the records of the Congress party, had imposed a fine of Rs 24 crore on March 31, 1997.
The petition said, however, FCRA wing of the home ministry failed to take any action including arrest even after having authentic proof.
Referring to the debate of the confidence motion in Lok Sabha moved by Deve Gowda on April 11, the petition said the Prime Minister had confirmed that he had fixed an appointment with Kesri at 1400 hrs on March 30 to discuss income tax related matters.
It also cited the speech of home minister, Indrajit Guptas secret meeting with Kesri on April 8, barely three days before the confidence motion.