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Why no action against BJP, Congress for Vedanta funding, Centre asked

IANS | New Delhi |

The Delhi High Court on Tuesday sought response from the central government on a contempt plea that alleged that the government had failed to act against the Congress and the BJP for accepting foreign funding.

Justice Manmohan issued a show cause notice to the Union Home Secretary on the contempt plea filed by NGO Association for Democratic Reforms (ADR).

The court posted the matter for next hearing on July 20.

On March 28, 2014, the court held both the Bhartiya Janata Party and the Congress guilty of receiving foreign funds from Vedanta Group subsidiaries in violation of the Foreign Contribution (Regulation) Act (FCRA).

The court on Tuesday asked the government and the Election Commission to act against the two political parties within six months.

Advocate Pranav Sachdeva appearing for ADR told the court that even after the lapse of three years of the court's order, the government had not taken any action.

"Since there has been wilful disobedience on the part of the respondent (government) in compliance with the impugned order, respondent is liable for contempt of the court and contempt proceedings should be initiated against the respondent," said the plea.

The court held that UK-based Vedanta Resources is a foreign company within the meaning of the Companies Act, 1956, and therefore, the firm and its subsidiaries — Sterlite Industries and Sesa Goa — are a foreign source as contemplated under the act.