The Supreme Court on Friday refused to stay a Delhi High Court judgment directing initiation of action against political parties including the Congress on receipt of funds from foreign companies for election campaign.

A bench of Chief Justice RM Lodha and Justices Kurian Joseph and Rohinton Nariman, however, told senior counsel Kapil Sibal, appearing for the Congress, that the petitioner could move an application if coercive steps were taken.

Acting on a public interest writ petition, the Delhi High Court had found prima facie violation of the Foreign Contribution (Regulation) Act and said as the donations accepted by the political parties from Sterlite Industries and Sesa accrued from foreign sources within the meaning of law.

The CJI told Sibal that the only question for consideration in the appeal is whether companies registered or incorporated abroad would be considered a foreign company even if owned by Indians.

The Bench issued notice to the Centre and the Election Commission returnable in eight weeks.

Prashant Bhushan, counsel for the Association for Democratic Rights which had filed the petition in the High Court, submitted that any company controlled from outside India through shareholding arrangement, should be deemed to be a foreign company.

The Congress contended that the contributions received by it did not attract the provisions of Section 12 of the FCRA nor there could be any suspicion that the amount was being utilised for unlawful activities or there was any concealment or suppression by the party.

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