Intelligence reports of the Union Government have indicated that sizable amounts of foreign money have been received on a selective basis by individuals and organisations, and that possibly funds obtained from foreign sources were used in the last general elections. The Union Home Minister, Mr. Y. B. Chavan, giving this information to the Lok Sabha to-day [May 14, New Delhi], said comprehensive legislation would be brought forward to impose restrictions on receipt of funds from foreign organisations, agencies or individuals otherwise than in the course of ordinary business transactions. Government would consult Opposition leaders on the principles of this legislation. Foreign organisations about whose sources of funds Government had the slightest doubt (like the Asia Foundation) would not be permitted to function in India.
