The Karnataka High Court has temporarily halted the investigation into the Electoral Bonds case involving Finance Minister Nirmala Sitharaman. On Monday, the court issued an interim stay on the inquiry, which also involves Karnataka BJP chief B.Y. Vijayendra and others.
An additional interim stay was placed on the ongoing investigation concerning the FIR against former Karnataka BJP president Nalin Kumar Kateel, who is a co-accused in the case related to alleged extortion under the guise of electoral bonds. The next hearing is set for October 22.
Details of the Case Against Nirmala Sitharaman
The FIR against Sitharaman and others was filed following a complaint related to the now-defunct electoral bonds scheme. The court’s directive led to the registration of the case on Saturday, highlighting serious allegations of extortion.
The FIR includes multiple charges under various sections of the Indian Penal Code (IPC), specifically:
- 384: Punishment for extortion
- 120B: Criminal conspiracy
- 34: Common intention
Karnataka BJP chief B.Y. Vijayendra and party leader Nalin Kumar Kateel are also named in the FIR.
Allegations of Extortion
The complaint was filed by Adarsh R. Iyer, co-president of the Janaadhikaara Sangharsha Parishath (JSP), who alleged that the accused “committed extortion under the guise of electoral bonds,” claiming they profited by over ₹8,000 crore.
Iyer further accused Nirmala Sitharaman of enabling significant financial extortion with the covert support of Enforcement Directorate (ED) officials. He alleged that the BJP MP facilitated the extortion of thousands of crores for the benefit of individuals at both state and national levels.
The complaint contends, “The entire extortion racket under the guise of electoral bonds has been orchestrated in collaboration with officials of the BJP at various levels.”
Background on Electoral Bonds Scheme
The Supreme Court declared the electoral bonds scheme unconstitutional in February, stating it violated the right to information and the freedom of speech and expression guaranteed by the Constitution. The electoral bonds functioned similarly to promissory notes and interest-free banking instruments, allowing any Indian citizen or registered organization to purchase them in compliance with Know Your Customer (KYC) norms.
