Extortion through electoral bonds scheme: Karnataka HC stays investigation against FM Sitharaman, others

The Karnataka High Court on Monday ordered an interim stay on an investigation against Union Finance Minister Nirmala Sitharaman and others accused in connection with the electoral bonds case.

The Bengaluru City Police had on Saturday registered an FIR against Sitharaman, BJP leaders JP Nadda and Nalinkumar Kateel and others for allegedly committing irregularities and misusing the electoral bond scheme to extort money from companies using enforcement agencies. The FIR was filed based on directions from a lower court, charging them under IPC sections for extortion, and criminal conspiracy, among the others.

Justice M Nagaprasanna passed the order on a petition filed by Kateel challenging the criminal complaint filed by Adarsh R Iyer, representing Janaadhaikaara Sangarsha Parishath. The Judge said: “"Section 383 mandates any informant should have been put into fear. It is only then extortion can be established. Criminal law can be set into motion by any person. But in cases of 384, it can be set into motion only by the aggrieved ... Who is the complainant here becoming significant ... In this case, permitting further proceedings at least until the objections have been filed will become an abuse of the process of law," the Court said, staying further proceedings.


The complainant alleged that the ED was used to raise funds for the BJP from corporates through the electoral bonds. Kateel moved the high court saying they had been ‘falsely implicated’ with "with an ulterior political motive."

Senior Advocate KG Raghavan appeared for Kateel today and asserted that even a bare reading of the complaint would not be making out allegations of extortion. He termed the complaint frivolous, vexatious and a complete abuse of the process of law. Senior advocate Prashant Bhushan appeared for the complainant.