In a significant development on Monday, the Karnataka High Court granted Union Finance Minister Nirmala Sitharaman temporary relief by staying the investigation into allegations of extortion through the electoral bonds scheme. This decision follows an FIR filed against Sitharaman, Karnataka BJP president Nalin Kumar Kateel, and other senior BJP members. The FIR was prompted by a complaint from Adarsh R Iyer, Co-President of the ‘Janaadhikaara Sangharsha Parishath,’ alleging that these individuals engaged in an extortion scheme benefiting from the sale of electoral bonds to the tune of over ₹8,000 crore.
Justice M. Nagaprasanna, who presided over the case, issued the interim stay in response to a petition by Kateel challenging the FIR. The court cited key concerns about the lack of direct threats against the complainant, a necessary criterion for establishing extortion under Section 384 of the Bharatiya Nyaya Sanhita (BNS). As a result, the probe is on hold until the next hearing, scheduled for October 22, 2024.
The electoral bonds scheme has been a contentious issue since its introduction, with critics alleging that it facilitates opaque political donations. The Supreme Court had previously struck down the scheme, citing concerns over its implications on transparency and accountability in political funding. Despite this, the case against Sitharaman and other BJP leaders revolves around accusations that they used the scheme to pressure companies into purchasing bonds, allegedly with the backing of the Enforcement Directorate (ED). The complainant claims that threats of ED raids were employed to coerce companies into making these donations.
The Congress party has capitalized on this development, demanding Sitharaman’s resignation and calling for a Supreme Court-monitored Special Investigation Team (SIT) to probe the entire electoral bonds scheme. Congress General Secretary Jairam Ramesh accused the BJP of engaging in “prepaid, postpaid, and post-raid bribery” through the scheme, further intensifying the political fallout.
In contrast, the BJP has strongly defended its leaders. BJP MP Jagadish Shettar blamed the ruling Congress in Karnataka for politicizing the issue, while Kateel’s legal team described the FIR as frivolous and driven by ulterior political motives.
The next court hearing will likely focus on determining whether the allegations have sufficient merit to proceed, or if they are, as the defense claims, an abuse of the legal process. Until then, Sitharaman and the other accused enjoy temporary reprieve, with the broader implications of the electoral bonds controversy still very much alive in the Indian political landscape.