Bengaluru, India

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The court in the Indian city of Bengaluru court has instructed the police to file an FIR against Union Finance Minister Nirmala Sitharaman, following claims of extortion linked to the now-defunct electoral bonds scheme.

The complaint was submitted by Adarsh Iyer, representing the Janaadhikara Sangharsha Sanghatane, accusing Sitharaman and others of involvement in extorting funds through the electoral bonds system. Based on this, the Special Court for People's Representatives in Bengaluru directed that the FIR be registered, reported news agency ANI.

In addition to Sitharaman, the complaint also mentions Bharatiya Janata Party (BJP) President JP Nadda and Karnataka BJP figures Naleen Kumar Kateel and BY Vijayendra. It accuses them of pressuring businesses to buy electoral bonds worth thousands of crores, reportedly using Enforcement Directorate (ED) raids as a means of coercion. The complaint further alleges that these bonds were cashed by BJP leaders at both national and state levels.

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The scheme, according to the complaint, was used to gather illegal funds for political gain, with senior BJP figures, including Sitharaman, allegedly playing a role.

Earlier this year, India's Supreme Court declared the electoral bonds scheme unconstitutional, stating it breached the public's right to information. Introduced by the Centre in 2018, the scheme was designed to replace cash donations to political parties, aiming for greater transparency in political funding.

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Karnataka Chief Minister Siddaramaiah, responding to the case, demanded Sitharaman’s resignation and called for a report on the matter within three months.

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"An FIR has been registered against Nirmala Sitharaman in the Special Court for People's Representatives. Who is she? She is a Union Minister, and there is an FIR against her too. They were involved in extortion through electoral bonds and the FIR has been registered on that. She should tender her resignation after the FIR has been registered. Will they (BJP) ask her to resign?" he said.

The BJP has stood by Sitharaman, dismissing the accusations as politically motivated. The party insisted that the electoral bonds issue concerns policy, not criminal activity, and countered by pointing to Karnataka CM Siddaramaiah’s own involvement in legal cases, including the ongoing MUDA case.

"Siddaramaiah is a habitual offender when it comes to cooperating with the investigation agencies. There were 106 cases against Congress leaders, and among those, 64 were absolutely on Mr Siddaramaiah when he was the Chief Minister of Karnataka the last time," said BJP spokesperson Dr Sudha Halkai.

(With inputs from agencies)