The Karnataka High Court on Monday stayed the investigation against Union Finance Minister Nirmala Sitharaman and others in connection with alleged irregularities surrounding the now-scrapped electoral bond scheme. Justice M Nagaprasanna passed the interim order on a petition filed by BJP leader Nalin Kumar Kateel, challenging the FIR in which he was named as an accused. The next hearing is scheduled for October 22.
A case was registered on Saturday against Sitharaman and others following directions from a special court in Bengaluru. The complaint was related to alleged extortion through the electoral bond scheme. The FIR was lodged under various sections of the Bharatiya Nyaya Sanhita, including 384 (punishment for extortion), 120B (criminal conspiracy), and 34 (acts done by several persons in furtherance of common intention). The accused include Enforcement Directorate (ED) officials and BJP office-bearers at both state and national levels, news agency PTI reported.
BJP Karnataka President B Y Vijayendra has also been named in the FIR.
The complaint was lodged by Adarsh R Iyer, Co-President of the 'Janaadhikaara Sangharsha Parishath' (JSP). Iyer alleged that the accused committed extortion under the "guise and garb" of electoral bonds and benefitted by over ₹8,000 crore. He further claimed that Sitharaman, with clandestine support from ED officials, facilitated this extortion scheme for the benefit of BJP officials both at the state and national levels.
"The entire extortion racket under the garb of electoral bonds has been orchestrated hand in glove with officials of BJP at various levels," Iyer alleged.
The electoral bond scheme was struck down by the Supreme Court in February, which ruled that it violated the right to information and the freedom of speech and expression under the Constitution.
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.