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"Laxman has deposited the entire amount of Rs 100,000 with the party and I have checked that out," he told Karan Thapar on BBC's Hardtalk India programme to be telecast on Wednesday.
However, Advani said, "I admit that damage has been caused" and the party would have to 'work hard' to restore its 'clean' image as a party 'with a difference'.
Asked if he would prefer Laxman, who resigned as BJP president, to quit his Rajya Sabha membership, he said, "I will not advise him to resign. It is for him to decide. I do not see any corruption in it" since the money was taken for the party.
But the home minister added that no person, however high, would be spared if the inquiry commission, probing the matter, found anyone guilty.
Replying to questions, he said the Group of Ministers (GoM) on national security, headed by him, has recommended concrete steps to check corruption in defence deals.
The GoM's report, currently being studied by Prime Minister Atal Bihari Vajpayee, is expected to taken up by the Cabinet before the conclusion of the Budget session of Parliament, he said.
Elaborating why he called BJP a party with a difference, Advani said the party had build up its strength from two seats in the Lok Sabha to 86 seats in the 1989 elections by projecting that it was committed to values and good governance and was not corrupt as against other parties, which had come up by manipulating vote banks.
Asked if the expose would affect its electoral prospects, he candidly told Thapar that the government would over a period of time counter any adverse affect on its image even though Opposition parties would capitalise on it.
He said while previous Congress governments had failed to initiate any action even after the Bofors and HDW submarine scandals had surfaced, this government had responded effectively.
To a question whether Laxman's action could be described as 'indefensible', Advani said he would not agree with the description said it could be termed as 'indefensible indiscretion'.
He recalled having stated that his resignation from the Lok Sabha in the wake of the 1996 Hawala case should not be treated as a standard for a political leader.
Asked about the BJP's agenda on economic reforms and liberalisation, the home minister said the government was determined to pursue its policies on divestment and labour laws.
"I hope we will succeed," he said maintaining that if the Congress opposed them for political reasons, it would be a loser.
PTI
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