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Govt delays efforts to prosecute Kesri in foreign donations case
George Iype in New Delhi
The Union home ministry has sought the law ministry's opinion on a move by the Enforcement Directorate to question and prosecute Congress president Sitaram Kesri and senior party leader A K Antony over the Rs 37.5 million received by the party as donation from abroad between 1992 and 1995.
The home ministry's move is seen to be a ploy by Prime Minister Inder Kumar Gujral to pacify the Congress president since Gujral fears any action against the Congress leadership could backfire on his United Front government.
Sources said the law ministry could delay the foreign donation violation case indefinitely because the government so wishes it. It can also advise the ED to freeze the Rs 37.5 million instead of prosecuting Congress leaders.
The ED had issued a show cause notice to the Congress for alleged violations of the Foreign Contribution Regulation Act and has asked the party to reveal the names of those who contributed the Rs 37.5 million from abroad.
Congress treasurer Ahmed Patel submitted a detailed rejoinder to the ED arguing that FCRA provisions could not be applied against the party. This contention was backed by an opinion note from former Chief Justice of India P N Bhagwati.
According to the prosecution waiver sought by the Congress, the party does not know the identity of the donors and the donor companies as it has always been receiving such foreign drafts from well-wishers and non-resident Indians.
The party also explained away its failure in reporting the receipt of foreign donations to the home ministry under FCRA provisions to 'unintentional and administrative oversight'.
The documents in the ED's possession state that the Congress received foreign donations amounting to Rs 37.5 million from London's Barclays Bank, the Singapore branch of Indian Bank, the Jakarta branch of the Hong Kong and Shanghai Banking Corporation as well as three Singapore-based companies -- Decor, Dominion and Diera.
The ED has asked the party whether Decor, Dominion and Diera were foreign firms or if they belonged to NRIs. If owned by NRIs, the ED wants names of their owners and why the donations had been made.
ED officials said it has a very strong case against the Congress under the FCRA Section 4 and 26 if the party fails to identify the NRI donors.
Kesri was the Congress treasurer when the party received the controversial foreign payments in the name of P V Narasimha Rao, then president of the All India Congress Committee.
In 1995, Kesri went abroad for treatment. It was during that time that Antony, who was acting as the party treasurer, received and deposited five of these cheques amounting to Rs 27.5 million in the Union Bank of India's New Delhi branch.
Many believe the Gujral government has shifted the controversial files from the home ministry to the law ministry to ensure that the controversial case does not lead to strained relations between the prime minister and the Congress president.
RELATED LINK:Enforcement Directorate to question Antony, Kesri
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