BJP, Congress guilty of taking foreign funds: Delhi HC

Status and proceedings before Delhi Highcourt: In a landmark judgment, the Delhi High Court has held major National political parties BJP and Congress guilty of taking foreign funding and violating the provisions of FCRA  and directed the Ministry of Home Affairs (MHA) and Election Commission of India (ECI) to take action against the two parties within six months. The judgment was announced on a petition filed in public interest by Mr. EAS Sharma, Former Secy, Govt of India, and Association for Democratic Reforms (ADR) in Delhi High Court in January 2013. The petitioners had asserted that there is a blatant violation of the Foreign Contribution (Regulation) Act, 1976 FCRA)  and Representation of People’s Act, 1951 by these two major National political parties.

It has been observed by the Court that these political parties have taken donations from Vedanta & its subsideries, registered in England and Wales, and its subsidiaries. The Bench also rejected the stand taken by Ministry of Home Affairs which said that FCRA has not been violated. The judgment drew attention to the donations made to INC and BJP for the period up to the year 2009.

Related News

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2. Finance Bill Amends FCRA Again to Condone Illegal Donations to BJP, Congress from Foreign Companies (The Wire)

3. The Chronology of Subterfuge on Amending the FCRA (The Wire)

4. FCRA: Amending a Repealed Law Retrospectively Crosses all Ethical and Legal Limits (The Wire)

5. Retro rules make a comeback (Telegraph)

6. 2016 Amendment to the FCRA (Corporate Law Reporter)

Petitioners in the PIL

a) Association for Democratic Reforms (ADR)

b) Dr. EAS Sarma, former Secretary to the Government of India

Respondents in the PIL

Respondent no. 1: Union of India (UOI)

Respondent no 2: Election Commission of India (ECI)

Respondent no 3: Indian National Congress (INC)

Respondent no 4.: Bhartiya Janta Party (BJP)





Date of Judgment:  28th March, 2014

Total number of hearings











Grounds of the PIL

a) INC and the BJP have violated Section 29B of the Representation of People’s Act 1951, which categorically prohibits them to take donations from government companies and from any foreign source.

b) The donation of huge sums of money made by the Vedanta Group (being a foreign company) to major political parties like INC and BJP is in clear violation of the FCR Act of 1976 and the FCR Act of 2010.

c) The donation of huge sums of money by the public sector undertakings (who are also State within Article 12 of the Constitution) to the political parties is in violation of Section 293A of the Companies Act.

Current status:

On 29th November 2016, the Special Leave Petitions (SLPs) filed by BJP and INC were dismissed as withdrawn by the Supreme Court. During the hearing both parties conjointly told the Apex court about their decision to withdraw the SLP's they had filled in the year 2014. This decision to withdraw the appeals came after both the parties had sought time from the Supreme Court to clarify the effect of the amendment brought this year to the Foreign Contribution Regulation Act, 2010 in their matter. With the Supreme Court’s decision to dismiss these appeals as withdrawn by the parties, the onus is now on the Government to act. The Ministry of Home Affairs (MHA) should abide by the High Court’s ruling and take action against these parties within six months as the Delhi High Court’s order of March 2014 is now legally binding and final.

ADR vs. UOI (Delhi High Court judgment on foreign  funding received by INC and BJP)

Click here for the copy of PIL- Foreign Funding of Political Parties


Counter Affidavit of Respondent no. 1- Union of India for the hearing on 21-08-2013

Counter affidavit by respondent no.2- ECI

2nd counter affidavit by respondent no. 1- MHA

Additional Affidavit of Respondent no. 1- Union of India through MHA

Counter affidavit by Respondent no. 3 INC

Counter affidavit of BJP for the hearing dated 21-08-2013

ADR's Couter afffidavit in an SLP filed by INC in Supreme Court 

Supreme Court's Order dated 29-11-2016

Letter dated 28th march, 2014 to MHA on FCRA violation 

Letter dated 28th march, 2014 to ECI on FCRA  violation

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