Political Donations: Centre Clears Air On Foreign Firms



The central government said: "After perusing the records, the ministry of corporate affairs came to the conclusion that none of the companies listed in the account statements were found to have established a place of business in India..."

"... Since the companies had not established a place of business in India, they did not qualify as foreign company as per the Companies Act."

Vedanta, the Madras Aluminium, Hyatt Regency, Win Medicare, Adani Wilmar and Sterlite Industries India. Are not foreign companies, whereas DOW Chemical International. is a foreign company, the affidavit said.

It added that the ministry said information about Sesa Goa Ltd. was yet to come.

The petition filed by NGO Association for Democratic Reforms and E.A.S. Sarma, a former secretary in the central government, through advocate Prashant Bhushan, alleged that various Indian laws had been violated by the Congress and the BJP by allegedly receiving funding from Vedanta Resources.

The PIL asked the central government to "cancel the income tax exemption given to political parties and corporate groups for donations made in violation of the law of the land".

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Source: IANS