India: Karnataka HC stays probe against FM Sitharaman in electoral bond extortion case

The high court of the southern Indian state of Karnataka on Monday halted the ongoing probe against Union Finance Minister Nirmala Sitharaman in the electoral bond extortion case. The bench of Justice M Nagaprasanna noted that permitting investigation in this case will be abuse of process of law “till the statement of objection are filed by respondent.” “In that light I deem it appropriate to interdict further investigation in the matter till next date of hearing," the justice added.

The matter is listed for hearing on October 22 now.

While staying the probe for now, the High Court noted, “It is only then prima facie extortion can be established against the accused. It is a well settled principle that criminal law can be set in motion by anyone, but there are provisions in IPC that they can be set in motion by only aggrieved. It is not his (complainants) case that he is put under fear. The complainant in the case at hand wants to project Section 383 of the IPC; he is an aggrieved party, which he is not.”

Earlier, a lower court in Bengaluru had instructed the police to file an FIR against Sitharaman and several leaders affiliated with the national ruling Bharatiya Janata Party (BJP).

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.

In addition to Sitharaman, the complaint also mentioned BJP president JP Nadda and Karnataka BJP leaders Naleen Kumar Kateel and BY Vijayendra. It accused 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.

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.

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

The BJP had dismissed the allegations as politically motivated.