Karnataka HC stalls probe into Nirmala Sitharaman, others in electoral bonds case

The Karnataka High Court on Monday paused the investigation into Union Finance Minister Nirmala Sitharaman and others over the electoral bonds scheme. The decision came from Justice M Nagaprasanna after a petition by BJP leader Nalin Kumar Kateel.

The court highlighted that Section 383 requires the informant to have been subjected to fear for extortion to be proven. It further emphasised that while criminal law can be initiated by anyone, cases under Section 384 must be initiated by the aggrieved party. The court questioned the identity of the complainant and ruled that allowing proceedings to continue without addressing these concerns would be an abuse of the legal process, staying the proceedings until further notice.

Following the registration of an FIR against Sitharaman by Bengaluru police for her alleged role in extortion and criminal conspiracy linked to the now-defunct electoral bond scheme, the Congress party called for her resignation on Sunday and demanded a Supreme Court-monitored inquiry through a Special Investigation Team (SIT) into the accusations, as reiterated by MP Abhishek Manu Singhvi and general secretary for communications Jairam Ramesh during a press conference at the Congress headquarters in Delhi. On Saturday, a case was filed against Sitharaman and others based on a special court's order in Bengaluru. 

Priyank Kharge, the Karnataka Minister, called for Sitharaman's resignation on Sunday, alleging that companies suffering significant losses have made substantial donations to the BJP through the electoral bond scheme. He pointed out the court had established valid grounds for the police to file an FIR against Sitharaman and others.

The FIR also implicated unnamed officers from the Enforcement Directorate (ED) and various BJP officials at both state and national levels. 

Singhvi emphasised that the BJP's actions have consistently undermined democracy. He stated that the FIR reveals the true nature of the BJP, particularly highlighting the roles of its top leaders. Singhvi referred to sections of a Supreme Court order regarding the electoral bonds case, asserting that this was not a typical FIR but one filed following a court directive.

He stressed the necessity of a fair electoral environment for democracy, characterising the electoral bond scheme as an "extortion BJP scheme" that attacks the Constitution's fundamental structure. Singhvi demanded Sitharaman's resignation, asserting that responsibility lies with her, and called for accountability regarding those involved, insisting that proper criminal procedures be followed for all parties, including potential arrests.

Congress MP and communication-in-charge Jairam Ramesh outlined four instances of "blatant corruption" linked to the electoral bonds scheme, which was deemed unconstitutional by the Supreme Court on February 15, 2024. He stated that Sitharaman should resign on moral, political, and judicial grounds, given her status as the primary accused. 

Ramesh noted that both the Central Bureau of Investigation (CBI) and the ED operate under the finance ministry, furthering his argument for her immediate resignation while clarifying that the Congress party is not connected to the FIR.

The complainant, Adarsh R. Iyer, co-president of Janaadhikaara Sangharsha Parishath, accused the defendants, including Karnataka BJP president B.Y. Vijayendra and party leader Kateel, of "committing extortion under the guise and garb of electoral bonds" and profiting by over ₹8,000 crore.

The FIR also includes BJP Karnataka chief B.Y. Vijayendra and party leader Kateel, along with Enforcement Directorate officers.