The Karnataka High Court on Monday ordered an interim stay on the FIR filed against Union Finance Minister Nirmala Sitharaman and other BJP leaders, including Nalin Kumar Kateel, the former Karnataka BJP president, until October 22. The FIR accuses them of extortion under the guise of electoral bonds. The court has also stayed further investigation into the matter until the next hearing, which is scheduled for October 22.
A stay has been put on further investigation in the FIR registered against Union Finance Minister Nirmala Sitharaman and then Karnataka BJP president Nalin Kumar Kateel, who is co-accused in a case, alleging that he committed extortion under the guise and garb of electoral bonds, news agency ANI reported.
The FIR was filed following a court directive in Bengaluru due to a complaint alleging that the Finance Minister and others extorted money through the now-scrapped electoral bonds scheme. The case was registered under sections 384 (punishment for extortion), 120B (criminal conspiracy), and 34 (acts done by several persons in furtherance of common intention) of the Bharatiya Nyaya Sanhita (formerly IPC), naming Sitharaman, Enforcement Directorate (ED) officials, and state and national-level BJP office-bearers, according to news agency PTI.
Karnataka BJP leaders B Y Vijayendra and Nalin Kumar Kateel are also among the accused.
Karnataka Minister Priyank Kharge Demands Nirmala Sitharaman’s Resignation
On Sunday, Karnataka Minister Priyank Kharge demanded Nirmala Sitharaman’s resignation over the case. Kharge alleged that companies incurring massive losses had made significant donations to the BJP through the Electoral Bond scheme. He said the Bengaluru court had found valid grounds to order the registration of the FIR against Sitharaman and others.
In a press conference, Kharge stated, "If you have morality, then drive out former BJP Chief Minister B S Yediyurappa and his son B Y Vijayendra, who is the BJP state president. Expel Nirmala Sitharaman, R Ashoka (Leader of the Opposition in the Karnataka assembly), and BJP MLA Munirathna."
Explaining the matter, Kharge said the FIR was filed based on a petition by the Janadhikara Sangharsh Parishath. He further cited the Supreme Court’s stance on the Electoral Bond scheme, calling it unconstitutional.
According to PTI, Kharge also claimed that 33 companies running at a combined loss of Rs 1 lakh crore had donated Rs 576.2 crore to the BJP. Additionally, six companies with positive net profits donated Rs 646 crore—an amount exceeding their total profits. Three companies with positive net profits but reporting negative direct taxes had contributed Rs 193.8 crore, he alleged.
In response to alleged accusations from BJP leaders about Rahul Gandhi and Sonia Gandhi’s involvement in money laundering, Kharge hit back, saying, "You [BJP] have been in power for the past 11 years. What did you do all these years?" The minister also accused B Y Vijayendra of engaging in money laundering through shell companies based in Kolkata and other locations.
Meanwhile, the Karnataka High Court is set to resume further hearings on October 22.